Competitive strategies are an essential tool for sustainable competitive advantage. Particularly in the service industry, strategy has its significance as it plays a vital role in achieving customer satisfaction. This study investigates alignment of four service characteristics i.e. servicescape, service quality, quality and value with the firms’ strategy and how this alignment achieves customer satisfaction. A set of hypotheses were formulated to portray the significance of each of the four service characteristics and customer satisfaction in accordance with the firms’ competitive strategy. The investigations were done particularly within the fast-food industry, comparing two well-known fast-food chain restaurants namely, McDonalds and Max. A survey questionnaire covering the four service characteristics was prepared and distributed among the possible respondents. The analysis of the results was done with the help of SPSS. The results do not show any significant difference in McDonald’s or Max’s strategy in alignment of the four service characteristics. This thesis helps to understand the strategy dynamics of the service industry firms and what is or is not significant to them when customer satisfaction is to achieved; particularly for the fast-food industry.