ABSTRACT Due to intense competition within the service industry, there is need for institutions to capture a wider market in order to remain sustainable. This has to be through investing in managerial research. Most hospitals do not take marketing and research as a necessity; they feel it is more of an added cost/expense. So the objective of this study is to bring to the attention of managers the importance of strategic analysis and how best they can improve customer service through improved service delivery This study traced the activities of saint Francis hospital Nsambya in line with strategic management and will illustrate ways it can benefit from a through environment scan and identification of its strengths, weakness, opportunities and threats in order to achieve competitive advantage in the provision of health services . The researcher discussed management strategies applicable in the service firm environment. It is also necessary that managers analyze the competitive environment in order to enable them build onto the competitor's weaknesses. A further outlook of the hospital in general was discussed, with emphasis on their mode of operation and the need to retain the already existing clients through improved service delivery. The researcher through the use of tables and graphs as well to give a clearer explanation analyzes findings. Finally, recommendations to the 4 existing service gaps within the system like building a customer focused hospital, improving customer loyalty, building a strong marketing department, research to the available customers review product packages, and identify competitors and try to build on their weakness create quick response strategy to solve problems of the clients making sure that information flows in a timely and immediate manner.