Umuc Haircuts Stage 1 : Business Environment Analysis

In order to validate Snazzel’s services as excellent the customer experience will be measured using the “five service quality dimensions” (Grewal, 2014, p. 404). Two dimension of quality service are reliability and assurance (Grewal, 2014, p. 404). Reliability is measured by a business competence and ability in the skills which they preform (Grewal, 2014, p. 404). And assurance is the customers trust in the businesses’ ability to meet their needs (Grewal, 2014, p. 404). Snazzel has one hairstylist who is also the owner her name is Nazare Mondragon. Before I met Nazare I bounced from salon to salon because I was never satisfied with the services which were provided to me. When I met Nazare she was working for an Aveda salon and she was able to make my hair do things I did not think it was capable of. I have always had long hair and trusted Nazare so much that I allowed her to cut six inches of my hair off and I loved it. The delivery of all of her skills from highlights to haircutting and

The relationship between Salon & Spa owners/ managers and a local Cosmetology School is very important. It also plays big role in public relations aspect of the business on both parties.

The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms.

Porter's Five Forces is a simple but powerful tool that consist of 5 different forces to understand the competitiveness of your business environment, and for identifying your strategy's potential profitability. The five forces are degree of rivalry, threat of entry, threat of substitutions, buyer power, and supplier power. Each force is helpful in their own way to get to know your rivals a lot better and get to know what can happen in your market.

When thinking about opening a salon you should learn about all the cosmetology schools in your area. In bigger towns and cities there should be a few of them so you should get in contact with all of them. Leaving any of them out might ruin your chance for new employees and business that could expand your salon and spa even more. If you are opening a salon and spa near the school you went to you might already have connections with the teachers and administration there, so it would be a good place to reach out to first. Schools often like it when the salon reaches out to them first because teachers often call multiple salons to find out recent trends and price lists but get no response back. It is always good to keep in contact with all of the instructors from the cosmetology schools just incase they have questions about local

Majority of us guy’s go to a barbershop to get a sharp haircut or just to kick back and get a laugh out of all the crazy and funny story’s that customers or barbers like to share. At times that barber can be a role model to us younger gentlemen because some of us might of grew up without a father figure in are life and he could show a positive example of what a hardworking man should be or basically just because he is a man’s best friend because that 30-45 minute haircut could include some of the best advice that you have ever received from another person. But one thing that 50% of us didn’t know that Barber’s in the early ages were Barber surgeons, which meant that they were surgeons and also dentists performing most of the duty’s that a normal dentist or surgeon would do now a days. So that’s why I decided to do my Research paper on how barbering has changed over the year’s! I’ve spent various amount of hours shadowing barbers who are veterans in the barber business and well known and respected among the barber community and also been attending barber battles and competition’s around the Bay Area just so I can see the different types of styles a certain type of crowd might have over a certain crowd and to experience that real barber brother and sister connection there is that is well known and respected among different barbers nation and country wide. With this experience of shadowing barbers and spending time in barbershops I’ve seen the art of barbering is a beauty many

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

4. An analysis of the industry, i.e., degree of competition, growth of industry-wide sales, profitability of competitors, life cycle stage of the industry, Porter’s five factors, and P/E ratios of competing companies.

Supplier Power: This highlights that it is easy for suppliers to rise up their prices. This is determined by the number of suppliers, the uniqueness of their product, their control over the buyer, and the cost of changing from one buyer to another. The scarcer the supplier choices you might have, and the more you need the help and that

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:

The Competition: Suppliers need to be able to keep costs down, in order to keep

Porter’s five forces are used to determine the competitive intensity and attractiveness of a market. These are close forces that affect a company’s ability to make a profit and serve customers. If any of these forces change, a company must reassess its marketplace. The five forces include: the threat of substitute products, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers and the bargaining power of suppliers.

Different organization looks at the level of technology that competitors used in production of their services. Another crucial thing is the evaluation of what the competitor’s customer are complaining about and takes it as an advantage of attract customers to the organization (Matthew, 2010).