Question

Strategies in the Service Sector Select one of the following service sector industries: the health/fitness industry. How would you categorize their similarities? • How would you categorize their differences? • Identify the generic strategies employed by each of the competitors you’ve looked at in this industry. Are they similar? Why or why not? • Are there any complementary strategies being employed by these firms? If so, what are they? If not, why not?

Answer 1

1)

The firm's operating in the health and fitness sectors have the basic similarity as they seek to present a superior experience and all of them claims a niche positioning wherein they are able to create a difference in the way they help their customers health and lifestyles to be altered.

All of them follows a differentiation strategy and focusses on providing a superior experience to the consumer.

2) The difference is in the manner these companies project their differentiation.

While some companies project diet or exercise regime as a differentiator, others vouch for a holistic experience including food, diet and other lifestyle choices. Thus the mode of providing value is the primary differentiator.

3) The generic strategy being employed by all companies is that of differentiation in service. These are similar strategies because of the intent of the firm's to position themselves in a niche space and being able to charge a premium for the same.

4) The complementary strategy being employed to be able to differentiate based on the service provided is of hiring people with unique skills sets and building infrastructure which facilitates this unique service delivery.