Case Study UMUC Haircuts Essay

Myra Morningstar is the owner of the small employment, UMUC Hair cut offs. It is a small shop in the college campus area and Myra is looking to expand her line of credit to meet the needs of clients. In order for her to be successful in her upstart adventure she will need to consider the needs of her customers, workout of technology, and disputation with the new local competitor. Barriers to entry in the Hair trouble industry are very marginal. When it pee sexs to barbershops and beauty salons, there are a some already in the area with a couple to a greater extent potentials. luxuriously customer volume creates much competition in the marketplace. The only restraint to entry is licensing. Barbershops and salons must have a occupancy license on with a few permits (Barbershop Business Guide, 2014). The fixed costs are minimal and no special products are needed. Loyalty to barbers and hair stylists is moderate and incentives to wont a particular provider are almost non-e xistent.The market is almost to saturated and this particular area will soon become super competitive. Threats of alternate(a)s for UMUC Haircuts are moderate to low. Women are typically very particular rough their hair style and cosmetics. These are items that female genitalia create repeat customers erstwhile you accommodate a customer, theyll be coming back again and again. With the four-year-old and low income college students, this may vary slightly more but expression is eternally sledding to be important to most women. Men manage convenience and normality so same as women, accommodate them and theyll come back. Buyers dont have much bargaining power in the hair care industry beca handling there are so m whatsoever an(prenominal) of them. Almost every person gets their hair cut and usually several(prenominal) multiplication a year. Thus there is a large market of clients for salons and shops. Customers can range from two age old to ninety years old. Even though th e costs of switching to a different salon are very low, people are creatures of habit and will commonly stick with one salon or barbershop.Most people who cut their hair regularly and pay for high service will have developed a loyalty to their stylist. Buyers have most, if not all, of the power in this market so its important for shops and salons to differentiate and stand out. Suppliers in this market have a low bargaining power. Barbershops and salons are going to be the ones pushing and promoting their products. Shops and salons are free to choose which brands they carry. It is the suppliersresponsibility to persuade the salon to carry their brand, either through discounts, sales, promotions, or other things that profit the salon. There are enough different brands of hair care products for the supplier power to have relatively low bargaining power. With Hair Cuttery well-nigh to set up shop and the few others that are already rough for business, it is very hard to gain subst antial market power in this industry. There will probably never be a monopoly in the hair industry. The competition amongst salons and barbershops is moderate to high. Not one company dominates the industry. likewise the spa across the street, most are comparable in wrongs.The biggest competition will probably be the Hair Cuttery with it beingness so pie-eyed and them scissureing hair care to both men and women. UMUC Haircuts will use operative effectiveness to improve the manner in which internal business processes are executed. Operational effectiveness will help boast the minute of customers almost instantly. This will ensure no chairs are empty for any large quantity of time and will also cut devour the wait time of walk-in customers. Operational effectiveness will slump Buyer power because there will now be heart-to-heart chairs for walk-ins or a maximum wait time of 15 legal proceeding coming to UMUC Haircuts. Customers that choose to return will be remembered by cater and their past visits will be logged which, will make the customer detect important. Supplier Power will remain the same as before, with the amount of hair care products available. UMUC haircuts will have the power to choose where to deal their supplies from, whether they choose to buy in bulk for a better price or go with top of the line products that will be more affordable to UMUC due to the make up in sales and customers.The threat of substitute products will be low because the customers will be getting what they desire from UMUC. Customers usually look to substitute products when there is a price increase on their normal product, their product is no longer available or they have to wait for what they want. Consumers like instant gratification and that is what UMUC will offer their customers. The threat of new entrants is high and will continue to increase. Improving operational effectiveness wont stop new salons and shops from popping up but it will help with keeping t he customers loyal. If they like the way the business is being run and that they are being put primary then(prenominal) they wont run at first signs of a new shop or salon in town. Rivalry will always be high in this industry due to the amount of salons and shops andhow indulgent it is to enter into hair care.Innovation and always putting the customer first/customer service are a couple things to help go along ahead of competition. UMUC Haircuts will need to continue to stay ahead of the times with updated technology. UMUC has a few fooling processes that need to be improved upon. The daily process that UMUC will tackle is the customer information not being logged effectively and efficiently. By adding a computer to organize and store this token of information, it will help UMUC Haircuts a great deal especially with customer service. Remembering customers names can go a long way especially if they staff is able to view their information before an appointment and greet them wit h a hello and a summary of their last visit.STRATEGY FOR COMPETITIVE ADVANTAGE With the use of technology and adding computers, UMUC Haircuts can obtain Operational Effectiveness PROCESS TO BE IMPROVED tracking customer information through a computer program to achieve greater customer service.REFERENCESBarber Shop & Salon Business Guide. (n.d.). Retrieved November 1, 2014. Website. http//business.baltimorecity.gov/BusinessGuides/BarberShopSalon.aspx doorkeepers Five Forces in the Hairdressing Industry (in details). (n.d.). Retrieved November 1, 2014. Website. http//www.hairbrained.me/profiles/blogs/porters-five-forces-in-the