Ifsm 300 Stage 1 Umuc Haircuts

1025 Words5 Pages
Introduction UMUC Haircuts was opened in 1995 by Myra Morningside as a one chair barbershop. The business has since grown to employing 12 part-time barbers and stylists, possibly two manicurists, and profits are increasing. However, Ms. Morningside finds it difficult to schedule employees and customers, order and stock supplies, and record customer visit frequency and their personal information. This study will evaluate the company with Michael Porter’s five forces model, recommend a strategy for competitive advantage, support the correlation between scheduling and the strategy for competitive advantage, and explain how a technology solution can be beneficial. The Five Forces Model Evaluation of UMUC Haircuts FORCE | EXPLANATION | IMPACT | AFFECT STRATEGY? | BUYER POWER | Buyers can get more for their money by forcing businesses to lower prices while demanding the highest quality service. Since they can always go from one business to the next, businesses must take the cut in industry profitability to suit the buyer (Porter, 2008). UMUC Haircuts must be very attentive to buyer power since haircuts affect physical appearance and that is very important to many people. However, this is not of a high threat since the company has rising profits and established buyers. | Positive – there are established buyers that return regularly. They will continue to return if satisfied and may recommend the company to other buyers. | Yes | SUPPLIER POWER | The supplier can dictate the price of resources and control the quantity that can be ordered. Businesses in remote areas may be negatively affected by this since their closest supplier can seem like a monopoly. UMUC Haircuts is located in one of the most populated areas in the U.S. and resources are plentiful. However, good relations should be kept with the supplier regardless of proximity to other suppliers.

More about Ifsm 300 Stage 1 Umuc Haircuts

Open Document