Answer to Question #208967 in Management for Prabhdeep

Question

SUBJECT : SERVICE MARKETING

"In a globalized era service firms face lesser challenges but still some of the service firms fail "

In the light of this statement , discuss

• Any 5 challenges with elaboration of their failure and
• Any 5 reasons with elaboration of their failure.

Elaborate some of your proposals ( any 5 with elaboration ) to overcome such challenges.

Answer 1

Service firms face various challenges that lead to their failure such as;

·        Waiting for client payments

·        Hiring and training.

·        Maximizing billable hours.

·        Acquiring new clients.

·        Planning for ongoing demand.

Reasons for failure

·        Leadership failure.

·        Lacking uniqueness and value.

·        Not in touch with customer needs.

·        Poor financial management.

·        Rapid growth and over-expansion.

Proposals to overcome service firms’ failure

     Adopt a forward-thinking attitude.

     Conduct frequent strengths, weaknesses, opportunities, and threats (SWOT) analysis of your business system.

     Manage cash flow efficiently.

     Preparing for the bad economic times.

     Perseverance, determination, and a positive mindset reign supreme.