Critically discuss why service businesses sector has grown, but the businesses are often barley profitable?

Essay from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, University of Edinburgh (Business School ), language: English, abstract: This assignment deals with the issue of service management for organisations that essentially sell products, the various aspects of service management in such organisations, and the impact of service delivery on the growth, market share and profitability of these organisations. Use is made of the case of Whitbread plc, the UK's largest operator of budget hotels, to discuss the issue of service provisioning and its management in the budget hotel environment. The conduct of this study reveals that modern day product companies often have to provide services, as well as bundle them up with their products, in order to achieve customer satisfaction and improve customer relationships and loyalty. The provisioning of such services, including their formulation, planning, and delivery, is however an exceedingly complex process that can create operational and financial challenges for the involved organisations.