2001
DOI: 10.1108/13552550110385718
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Competing in the service sector ‐ The entrepreneurial challenge

Abstract: Despite the rapid growth and lure of the service sector, entrepreneurs are well advised to consider the numerous competitive challenges encountered when owning and operating a service business. The unique nature of services (i.e. intangibility, heterogeneity, perishability, simultaneity) serves as a backdrop to accentuate the competitive landscapes in the service sector. To frame the analysis and discussion of the competitive environment for service businesses, the article applies Porter’s conceptualization of… Show more

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Cited by 22 publications
(3 citation statements)
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“…Moreover, when the technology set is characterized by variable returns to scale (VRS), both output-oriented and input-oriented technical efficiencies are not generally equal. If we evaluate the efficiency of a tourist hotel by the output-oriented approach, then we may not fully characterize its operational management since it is unable to distinguish between quasi-fixed inputs (such as Unlike manufacturing products that could be inventoried for future use, the inseparability of services requires the presence and involvement of providers and customers [7,8]. Since there are no buffer inventories of service to smooth out any imbalances between capacity and demand, demand uncertainty affects the performance of the hotel industry severely.…”
Section: Introductionmentioning
confidence: 99%
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“…Moreover, when the technology set is characterized by variable returns to scale (VRS), both output-oriented and input-oriented technical efficiencies are not generally equal. If we evaluate the efficiency of a tourist hotel by the output-oriented approach, then we may not fully characterize its operational management since it is unable to distinguish between quasi-fixed inputs (such as Unlike manufacturing products that could be inventoried for future use, the inseparability of services requires the presence and involvement of providers and customers [7,8]. Since there are no buffer inventories of service to smooth out any imbalances between capacity and demand, demand uncertainty affects the performance of the hotel industry severely.…”
Section: Introductionmentioning
confidence: 99%
“…Since there are no buffer inventories of service to smooth out any imbalances between capacity and demand, demand uncertainty affects the performance of the hotel industry severely. To avoid a suboptimum period of over-or under-capacity, the service industry has to pay considerable attention to harmonizing the timing of capacity and demand [8]. Holthausen [9] claimed that demand uncertainty is positively related to the capacity expansion decision of firms.…”
Section: Introductionmentioning
confidence: 99%
“…As particularidades do setor de serviços na oferta de "produtos intangíveis" (intangibilidade, heterogeneidade, perecibilidade, simultaneidade) escondem a complexidade do cenário competitivo deste setor (RODIE; MARTIN, 2001). As empresas de serviços também sofrem influência externa, uma vez que podem ser altamente afetadas e influenciadas por avanços tecnológicos, regulamentação governamental e aumento de preço da energia (SCHMENNER, 1985).…”
Section: Introductionunclassified