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Stage 2

In: Computers and Technology

Submitted By helloall
Words 750
Pages 3
Stage 1. Business Analysis
UMUC

I. Introduction

In 1995, Myra Morningstar opened UMUC Haircuts, which was the only barbershop within a 10-mile radius. When she began her business in the strip mall by campus, she started with one barbers chair. UMUC Haircuts currently has three barbers chairs, three hair styling chairs, and a shampoo station. In order to continue to grow her store, Myra needs to get ahold of scheduling, supplies, customer info, and marketing. She currently is not using any kind of technology but is willing to start using it if it can be proven to be helpful for her business.

II. Five Forces Analysis

FORCE EXPLANATION
(Minimum 2 good sentences) IMPACT (POSITIVE, NEGATIVE, or NEUTRAL) AFFECT STRATEGY? (YES/NO)
BUYER POWER UMUC customers have a low switching cost, because they have options where they can get the same service, at relatively the same costs. This is an area that Myra needs to concentrate on to be sure to keep her clients. Negative Yes
SUPPLIER POWER Supplier Power seems to be a low threat. This industry has many suppliers available so if the cost of supplies are rising it is time to seek out a new supplier who offers more competitive rates.. Positive yes
THREAT OF SUBSTITUTE PRODUCTS OR SERVICES The threat of substitutes is strong. Customers can switch to other haircut chains, or home run services. Negative yes
THREAT OF NEW ENTRANTS Other business are opening in the area, which makes this a high threat. There are people doing this from their home so this can be a low cost business to start in. Negative yes
RIVALRY AMONG EXISTING COMPETITORS Competition seems to be a important concern for UMUC haircuts. There are several other options within a very close proximity to Myra’s business, which are offering the same services. Negative yes

III. Justification of Selected

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