ABSTRACTThe purpose of this paper is to formulate hypotheses on which to carry out empirical research into market-led service strategies that can provide organisations with competitive advantage. The primary objectives are summarised as follows: 1. How service strategies affect the competitiveness of service organisations.2. How changes in culture within service organisations influence customer satisfaction.3. How market-led strategies lead to competitive advantage and the achievement of business goals. It is necessary to compare opinions of customers, employees, and managers with the theoretical research to improve customer service and enhance the market position of Siemens BCS. The theoretical method focuses on the following three specific areas: the involvement of the customer in the provision of exceptional service; the culture of the organisation in delivering customer satisfaction; how market-led service strategies help to beat the competition. This is particularly important to Siemens BCS because in 1996 it was experiencing difficulty in securing new business and was losing once loyal customers to the competition. Recommendations include involvement of customers and staff in upgrading the service, differentiated service options, focusing strategy on the elements of service that are crucial for the customer, training of the staff in key skills, creation of culture and infrastructure to support service strategy.