The service industry, despite the fact that it appears simple than the goods industry, is very unique. That most of the satisfaction is derived from the interaction between the customers and the representatives of a business, and the service they offer means this industry needs lots of skill to penetrate the market. There are various challenges faced by the service industry, and these originate in the business itself, the customers, or the legislations by the government. Some of the problems are highlighted next.
There have been reported many types of management-employee conflicts in many businesses, most of them result from the fact that the management has to give numerous directions to the junior employees while carrying out their duties. This problem is more common where businesses have poor means of communication and lack proper organizational roles and procedures.
Technological constraints are very common in many service businesses and this is due to the factor that the technology for managing the service industry is ever changing. A business may be offering technologies which are out of date, instead of the most recent ones. An example is a business involved with the sale of software, where new versions may be released in just a month’s time, making its products outdated.
As much as a business in the service industry may devote to the provision of high-quality services, there will still be a large number of customers who will be dissatisfied with the services being provided. All people are unique in their own way and it’s very difficult to provide services that can match all their needs, this implies that no matter the devotion a business makes to provide quality services, there will still be customer complaints.
Many governments have numerous legal requirements for setting up businesses, and in order to get a business registered, there must be inspected, and pledge for compliance. These legal charges are included in the final charges made to customers when seeking services, and this makes the services expensive than they ought to be.
The major challenge for thriving in the service industry is the fact that a number of businesses trading in the same industry provide similar services, and this makes the customer indifferent when choosing buyers. This calls for superior marketing strategies, and continuous training of employees, which are extra costs that reduce the profits realized by a business if the market fails to positively respond.