Happy Haircuts has started as small hair cutter/barber and hairdresser, but its business has gradually grown. However, competition has also appeared in the neighborhood, including the hair cutting chain Hair Cuttery. Myra, the owner of the business, plans to implement information technology and information systems in order to improve the way it does business. This paper will aim to look at Porter's Five Forces, to better understand the environment, identify a strategic business area that needs to be improved and .
Buyer Power. Buyer power is strong. Customers have a lot of options in the neighborhood that they can use and they are able to impose whether to make an appointment or prefer walk-ins. Customers can influence how the hair cutters in the neighborhood do their business. However, this can be used to Myra's advantage: by implementing information technology and other methods, Myra can improve the relationship with the clients,...
The impact could be positive and it should affect Myra's strategy.
Supplier power . Supplier power is relatively strong in the case of Happy Haircuts, primarily because the company is not a large buyer. As a consequence, it has no real leverage when negotiating prices or delivers and suppliers could always choose to sell to one of the larger players in the market, who acquire large volumes more often than Happy Haircuts. It has a negative impact on the business and it should affect Myra's strategy.
Threat of substitute products or services . There is no threat of substitute products or services for haircutting, but there is a small threat for this when it comes to manicure services: people may choose to do their nails at home. The impact is neutral and it should not affect Myra's strategy.
Threat of new entrants . The threat of new…
