Barber Shop: The Product/Market Matrix

The following case study is in regards of economic market structure. In the world of economics all businesses or companies rather, are categorized in certain market structures such as monopoly, oligopoly, or perfect competition, for instance, the market structure for restaurants. Most restaurants are considered monopolistic competition. Being that they all sell and serve food. They have to have instances that vary such as price, logos, servers, locations, décor, types of food, and hospitality.

In this assignment I shall be discussing ways in which quality management can be measured within the hairdressing industry.

Characteristics of different business markets include: General market description, business opportunity, market segmentation, market size & trends, competition, customer profile and business environment. Looking at the different characteristics can help evaluate the market, this can be achieved by dividing the market into specific segments: by geographical market: by customer type: such as industries, professions, age. Evaluate the market size and trends by breaking the market into segments. This is often done to help assess who is the competition and how strong it may be within its own field.

(b) diversified its product portfolio; extend target customers and meet the variable needs of customers.

The shop has five (5) barbers. (Ned does not work in the shop and, as owner/entrepreneur, he takes no salary.) Each barber is paid an annual salary of $18,000. All equipment including store fixtures and barbering equipment is leased on an annual basis at $4,500 per year. Building space is leased at the rate of $500 per month (or $6,000 per year). Ned is concerned about the shop’s cost structure and seeks your advice.

Evaluate and compare how each niche distinguishes itself from its competitors in terms of market size, opportunity for advertisement, market need, and ability to sustain the business long term.

RQ1: I would advise them to be very open minded and broad when defining their market they are competing in as to not exclude any and all potential competition.

“We Gotta Take Our Streets Back”. This is a quote said in the new movie in theaters now called “Barbershop: The Next Cut”. The next cut is an excellent movie to have a connection with because of the positive vibes it gives off youngsters to keep of the streets, it shows the real Chicago and how most people like myself are affected by the movie.

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

Does the firms’ value proposition match with the benefits asked for by the consumers from the target segment?

This section will focus on customers’ needs, identifying collaborators and their strategic goals and identifying the competition that provides similar products.

The Nine –Cell industry attractiveness/business strength matrix graph will have the industry attractiveness on the vertical axis while the competitive strength is depicted on the horizontal axis; to the far left corner will be a large bubble representing U.S. grocery and the U.S. snacks, indicating that the U.S. Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength and thus warrants priority attention. In addition, the U.S. beverage, U.S. cheese and the U.S. convenient meals seem to huddle in the 3 diagonal cells stretching from the lower left to upper, indicating they merit intermediate attention by the Kraft incorporated. However, these segments of the company can be profitable if the company

Market Analysis: The analysis shows the preference of people which products they would like to use.

First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.

Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other