Final answer:
A beauty salon should innovate to maintain a unique selling proposition, ensure exceptional customer service, gather customer feedback, and stay informed about the competition to stave off failure and meet customer service needs.
Step-by-step explanation:
To stave off failure and ensure customer service needs are identified and satisfied, a service provider like a beauty salon should engage in several proactive strategies to keep up with the competition. Firstly, they should focus on innovation to maintain a unique selling proposition (USP), such as a signature treatment or product that competitors do not offer. This could mirror how a restaurant with a unique barbecue sauce distinguishes itself. Secondly, they must ensure exceptional customer service; considering management as an important internal customer can lead to improved service standards and job satisfaction.
Continuously soliciting customer feedback is essential to understand their needs and preemptively address issues, as demonstrated by the improvement made in a fast-food restaurant's payment queue system. Finally, understanding the impact of competition and being vigilant about market changes are crucial. A business must be aware that others may seek to build their reputations on similar offerings, and therefore must continuously strive to offer better quality and innovative services to remain competitive and retain customers.
Competition from firms with better or cheaper products can potentially reduce business profits, making it essential for service providers to be adaptable and responsive to the changing market dynamics.