Stage one IRSM300
While UMUC Haircuts is an established salon and when they opened in 1995 they were the only business that offered barbershop services. They have since expanded and added more stylist, barbers, and stations. The challenge this small business is facing includes entrants opening up in nearby areas, scheduling, supplies and inventory, and marketing their services. The purpose of this evaluation is to show how the implementing strategies of the Five Forces Analysis helps with the Competitive Advantage of Operational Effectiveness chosen by UMUC Haircuts owner will be effective.
FIVE FORCES ANALYSIS
FORCE
EXPLANATION
(Minimum 2 good sentences)
IMPACT (POSITIVE, NEGATIVE, or NEUTRAL)
AFFECT STRATEGY? (YES/NO)
BUYER POWER
The buyer power was low when UMUC Haircuts first opened. The change occurred when multiple services were made available to clients. This gives the buyer more options. This can change the competitive advantage of the shop.
NEGATIVE
YES
SUPPLIER POWER
The supplier power is strong if UMUC uses only one supplier. By expanded their suppliers and using different products they will add to their competitive advantage.
POSITIVE
YES
THREAT OF SUBSTITUTE PRODUCTS OR SERVICES
The threat of substitute service could be minimal if the UNUC salon adds services and expands technology. They will remain competitive and offer multiple services.
NEUTRAL
YES
THREAT OF NEW ENTRANTS
The threat of new entrants is high; there are already established businesses near the salon. There is HairCuttery, which purpose is quick, fast and low cost. The Spa is high priced and caters to easy fast service. They also use technology to book and advertise products.
NEGATIVE
YES
RIVALRY AMONG EXISTING COMPETITORS
By improving customer service processes and implementing a strategy to make UMUC Haircuts run more efficiently the rivalry of competitors will be minimal. The established services of the salon will only improve and become and asset to business process.
POSITIVE
YES
The
FIVE FORCES ANALYSIS
FORCE
EXPLANATION
(Minimum 2 good sentences)
IMPACT (POSITIVE, NEGATIVE, or NEUTRAL)
AFFECT STRATEGY? (YES/NO)
BUYER POWER
The buyer power was low when UMUC Haircuts first opened. The change occurred when multiple services were made available to clients. This gives the buyer more options. This can change the competitive advantage of the shop.
NEGATIVE
YES
SUPPLIER POWER
The supplier power is strong if UMUC uses only one supplier. By expanded their suppliers and using different products they will add to their competitive advantage.
POSITIVE
YES
THREAT OF SUBSTITUTE PRODUCTS OR SERVICES
The threat of substitute service could be minimal if the UNUC salon adds services and expands technology. They will remain competitive and offer multiple services.
NEUTRAL
YES
THREAT OF NEW ENTRANTS
The threat of new entrants is high; there are already established businesses near the salon. There is HairCuttery, which purpose is quick, fast and low cost. The Spa is high priced and caters to easy fast service. They also use technology to book and advertise products.
NEGATIVE
YES
RIVALRY AMONG EXISTING COMPETITORS
By improving customer service processes and implementing a strategy to make UMUC Haircuts run more efficiently the rivalry of competitors will be minimal. The established services of the salon will only improve and become and asset to business process.
POSITIVE
YES
The
References: Karimi, J., Somers, T. M., & Gupta, Y. P. (2001). Impact of Information Technology Management Practices on Customer Service. Journal Of Management Information Systems, 17(4), 125-158. Turban, E., Volonino, L., & Wood, G. (2013). Information Technology for Management (9th ed.). Hoboken, New Jersey: John Wiley & Sons. Wolfe, A. (2013, January 1). Customer Experience Key to 'Computing Everywhere ' Business Success. Retrieved January 1, 2015, from www.forbes.com/sites/oracle