Umuc Haircuts Stage 1

631 Words3 Pages
Stage 1: Business Environment Analysis Introduction: Myra Morningstar opened UMUC Haircuts in 1995 and her business has grown exponentially over the years. Now, Myra wants to expand her business by adding two manicure stations by renting a small gift shop that is next door to UMUC Haircuts due to the rise of competition in the area. The business is continuingly growing and profits are increasing and she is looking at improving customer and employee scheduling, inventory management, supply ordering, collecting customer information, and marketing. Currently UMUC Haircuts uses no technology and has hired an Information Technology expert to help her improve her business. Applying Porter’s Five Forces Analysis: Below is Porter’s Five Forces applied to Myra Morningstar UMUC Haircuts. Buyer Power: This force is based on how Myra can drive the cost of the product down for her customers. Driving the cost down would be a positive impact on UMUC Haircuts, but, unfortunately the price she is paying is going up quickly so she might need to change suppliers if she cannot lock in her supplier. Supplier Power: This force assesses how easy it is for UMUC Haircuts' supplier to drive up the prices. With the prices rising so quickly Myra should search for a new supplier because this is a negative impact on her business. If she finds a new supplier and lock them in with better costs this would impact her business postively. Threat of Substitute Products or Services: This force determines if UMUC Haircuts' customers can find a different way of doing what Myra's business does then they will substitute the way they accomplish it. Myra needs to build a schedule for her clients so Myra does not lose customers. This is a negative impact because she will lose customers and money. Threat of New Entrants: This force is based on new hair salons entering the area. Myra is

More about Umuc Haircuts Stage 1

Open Document