Head Shoppe Limited Case Study
Table of Contents
1.0 Introduction
1.1 The Head Shoppe Limited
The Head Shoppe Limited was the largest chain of hairstyling salons in the Canadian provinces, with salons in six major centres in Nova Scotia and New Brunswick and their annual sales approaching six million dollars.
1.2 Personal Background
The Head Shoppe Limited was first opened in 1968 by Wayne Drew. He was the son of a barber and had grown up in a small Nova Scotia town and entered his father’s trade at 18.
1.3 Strategic Options
The Head Shoppe has three strategic options to choose from in order to prolong their future business growth. One of the options is to expand their market geographically. Another options is to consider backward integration while lastly, The Head Shoppe need to consider whether to diversify their market to distribute computerized accounting system.
2.0 Findings
2.1 Market
2.1.1 Target Market
Market …show more content…
Less than 1% of hairstyling salons in Canada had computerized software, so the market for this software is pretty big as it not only has 99% of the hair styling industry but also other fields of retailing operations. Moreover, each system sold will get an approximately net return of $2,500, even when allowance was made for the provision of training and trouble-shooting service.
This proposal will only work probably in the short run only because once the 99% of the hairstyling industry and other retailing industry already bought the system; Head Shoppe will have a hard time in finding the buyers. Also if after 5 years later some competitors come up another more advance system, this accounting system that Head Shoppe has would prove to be worthless. Head Shoppe should try to gain as much profit as possible when they still have big opportunity in this
1.0 Introduction
1.1 The Head Shoppe Limited
The Head Shoppe Limited was the largest chain of hairstyling salons in the Canadian provinces, with salons in six major centres in Nova Scotia and New Brunswick and their annual sales approaching six million dollars.
1.2 Personal Background
The Head Shoppe Limited was first opened in 1968 by Wayne Drew. He was the son of a barber and had grown up in a small Nova Scotia town and entered his father’s trade at 18.
1.3 Strategic Options
The Head Shoppe has three strategic options to choose from in order to prolong their future business growth. One of the options is to expand their market geographically. Another options is to consider backward integration while lastly, The Head Shoppe need to consider whether to diversify their market to distribute computerized accounting system.
2.0 Findings
2.1 Market
2.1.1 Target Market
Market …show more content…
Less than 1% of hairstyling salons in Canada had computerized software, so the market for this software is pretty big as it not only has 99% of the hair styling industry but also other fields of retailing operations. Moreover, each system sold will get an approximately net return of $2,500, even when allowance was made for the provision of training and trouble-shooting service.
This proposal will only work probably in the short run only because once the 99% of the hairstyling industry and other retailing industry already bought the system; Head Shoppe will have a hard time in finding the buyers. Also if after 5 years later some competitors come up another more advance system, this accounting system that Head Shoppe has would prove to be worthless. Head Shoppe should try to gain as much profit as possible when they still have big opportunity in this