Companies require superior services to succeed in the competition. They realize and understand the new service realities in the 21st century. The objective of the study is to analyze the various aspects of the reality. The methodology adopted is a conceptual analysis of the realities and the strategies and initiatives adopted by companies. The new service realities relate to increasing roles of technology, customer empowerment, customer co-production, and the need to satisfy both customers and employees. Enlightened companies adopt several strategies and initiatives to deal with the realities. Academicians should analyze the realities and suggest effective ways of dealing with the realities. Practicing managers focus on adopting strategies and initiatives which are effective in dealing with the new realities, developing effective customer relationships, and in achieving business excellence in the long run.