Stage 1

1240 Words5 Pages
UMUC Haircuts Stage 1 ISFM 300 Abstract A strategy for competitive advantage and improving a business strategy are fundamental for improving a business overall, as competition, customers’ expectations, technology, type, and quality of products and services are changing in time. This paper is analyzing UMUC Haircuts’ cost leadership strategy and improvement of customer and employee scheduling process, following Porter’s Five Forces Model. UMUC Haircuts Stage 1 I. Introduction The paper is a business environment analysis for UMUC Haircuts, at the request of Mrs. Myra Morningstar. UMUC Haircuts has been in business since 1995, and the news that a Hair Cuttery will open five miles away is concerning for Mrs. Morningstar, as she…show more content…
Patrons have several choices in the area; however, by offering low cost of the services, UMUC Haircuts will be able to keep the old customers, and attract new ones. This force does not affect the strategy selected; the fact that buyers have the power to select the service that offers the best price will be advantageous to UMUC Haircuts. Their supplier power has a negative impact on the business, as UMUC Haircuts has only one supplier that is raising prices frequently. It is also affecting the strategy selected because it is very hard to keep costs low when the supply price is constantly going up. The threat of substitute products or services is very low, as a haircut is a haircut and the only substitute out there is cutting one’s own hair at home. However, a low cost service will definitely make customers not cut their hair at home, and utilize the services offered by UMUC Haircuts. A new similar business, Hair Cuttery, could have a negative impact on UMUC Haircuts business, but it will not affect the strategy selected for competitive advantage, and the reason is customers will always select the competitive price for same service. In any business industry a rivalry among competitors will exist, it is up to the business to take the competition as an advantage or not. UMUC Haircuts has competition in the area, and the competition has a positive impact on the business, as Mrs. Morningstar is thinking to bring more

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