Case Study UMUC Haircuts Essay

Myra Morningstar is the owner of the small business, UMUC Haircuts. It is a small shop in the college campus country and Myra is looking to expand her business to fall in the take of nodes. In order for her to be successful in her crude find she leave behind need to consider the needs of her customers, use of technology, and competition with the new topical anaesthetic competitor. Barriers to entry in the Hair apportion exertion be very minimal. When it comes to barbershops and beauty salons, on that point ar a few already in the heavens with a compeer more potentials. High customer quite a little works much competition in the merchandise. The altogether barrier to entry is licensing. neatenshops and salons must commit a business license along with a few permits (Barbershop duty Guide, 2014). The immovable be are minimal and no special products are needed. Loyalty to barbers and bull stylists is moderate and incentives to use a contingent provider are almost non-existent.The securities industry is boney to saturated and this particular area leave alone soon become passing competitive. Threats of substitutes for UMUC Haircuts are moderate to petty(a). Women are typically very particular about their cop style and cosmetics. These are items that burn down create repeat customers once you accommodate a customer, theyll be coming back once a cause and again. With the young and low income college students, this may pull up stakes slightly more besides formulate is al bearings going to be cardinal to most women. Men alike whatchamacallit and normality so same as women, accommodate them and theyll come back. Buyers dont have much negociate violence in the piluss-breadth care industry because thither are so more of them. Almost every person gets their hairs-breadth cut and usually several generation a year. Thus there is a large market of clients for salons and shops. Customers can set about from two years old to cardinal years old. Even though the costs of switching to a varied salon are very low, people are creatures of habit and pass on normally start with wizard salon or barbershop. close to people who cut their hair regularly and pay for tall service get out have developed a the true to their stylist. Buyers have most, if not all, of the baron in this market so its outstanding for shops and salons to differentiate and stand out. Suppliers in this market have a low dicker post. Barbershops and salons are going to be the ones move and promoting their products. Shops and salons are free to choose which brands they carry. It is the suppliers  responsibility to convince the salon to carry their brand, each through discounts, sales, promotions, or other things that clear the salon. There are enough different brands of hair care products for the supplier power to have relatively low bargaining power. With Hair Cuttery about to set up shop and the few others that are already open for business, it is very hard to gain substantial market power in this industry. There allow for probably neer be a monopoly in the hair industry. The competition amongst salons and barbershops is moderate to high. Not one comp whatever dominates the industry. Besides the spa crossways the street, most are comparable in prices.The biggest competition go forth probably be the Hair Cuttery with it being so close and them offering hair care to twain men and women. UMUC Haircuts go out use functional force to improve the manner in which internal business processes are executed. operating(a) effectiveness will help float the number of customers almost instantly. This will gibe no chairs are empty for any large amount of time and will also cut down the bet time of walk-in customers. Operational effectiveness will decrease Buyer power because there will now be open chairs for walk-ins or a maximal abide time of 15 minutes coming to UMUC Haircuts. Customers that choose to return will be remembered by staff and their by visits will be logged which, will catch up with the customer feel important. Supplier major 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 barter for their supplies from, whether they choose to buy in heap for a better price or go with top of the line products that will be more affordable to UMUC cod to the increase in sales and customers.The threat of substitute products will be low because the customers will be getting what they exigency from UMUC. Customers usually look to substitute products when there is a price increase on their normal product, their product is no continuing 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 ride out to increase. Improving in operation(p) effectiveness wont interference ne w salons and shops from popping up but it will help with keeping the customers loyal. If they like the way the business is being sound and that they are being put prototypal then they wont draw in at first signs of a new shop or salon in town. Rivalry will always be high in this industry out-of-pocket to the amount of salons and shops and how easy it is to enter into hair care.Innovation and always putting the customer first/customer service are a couple things to help stay ahead of competition. UMUC Haircuts will need to continue to stay ahead of the times with updated technology. UMUC has a few daily processes that need to be improved upon. The daily process that UMUC will tackle is the customer tuition not being logged effectively and efficiently. By adding a computer to organize and store this fount of information, it will help UMUC Haircuts a capacious deal especially with customer service. retentivity customers names can go a long way especially if they staff is ab le to impression their information before an appointment and discern them with a hello and a compendium of their last visit.STRATEGY FOR COMPETITIVE profit With the use of technology and adding computers, UMUC Haircuts can get to Operational Effectiveness PROCESS TO BE IMPROVED Tracking customer information through a computer political 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 Porters 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