Essay Undergraduate 690 words

Porter's Generic Strategies and Process Models for Happy Haircuts

~4 min read 4 sections Business · Business Strategy

Abstract

This paper examines strategic and operational considerations for Happy Haircuts, a small full-service salon. Using Porter's Generic Strategies framework, it argues that Happy Haircuts should pursue a cost leadership strategy given its broad target market and limited differentiation from competitors. The paper then explores business process modeling as a tool for optimizing the salon's core service workflows—specifically the appointment and walk-in processes. It identifies current inefficiencies such as ad hoc scheduling and lack of systems for handling multiple simultaneous service requests, and proposes how improved information systems and scheduling practices could reduce wait times, increase capacity utilization, and strengthen customer loyalty.

Key Takeaways

Porter's Generic Strategies: Applying Porter's framework to select cost leadership
Business Process Models Overview: How process models optimize salon efficiency
The Customer Contact and Service Process: Walk-in and appointment workflow gaps identified
Process Optimization and Information Systems: Using information systems to improve scheduling

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What makes this paper effective

Applies a well-known strategic framework (Porter's Generic Strategies) directly to a concrete small business context, making the analysis grounded and practical.
Connects strategic choice (cost leadership) to operational implications (process modeling and capacity management), showing coherent end-to-end reasoning.
Uses a relatable example—a customer wanting simultaneous hair styling, a manicure, and children's haircuts—to illustrate real scheduling complexity at the operational level.

Key academic technique demonstrated

The paper demonstrates framework application: taking a theoretical model (Porter's Generic Strategies) and systematically using it to diagnose a real business situation and arrive at a strategic recommendation. It then extends that recommendation into operational analysis through business process modeling, showing how theory can cascade into practical decision-making.

Structure breakdown

The paper opens with strategic positioning using Porter's framework, narrows to a specific strategic choice (cost leadership), then transitions to process analysis to show how operations must support that strategy. It moves from high-level strategy to mid-level process description to specific improvement opportunities, ending with a forward reference to appendices containing process diagrams. The argument flows logically from "what strategy?" to "how do operations support it?"

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Essay 690 words

Porter's Generic Strategies

Porter suggested that there are four generic strategies a company can follow in order to be successful: cost leadership, cost focus, differentiation, and differentiation focus (MindTools, 2014). Happy Haircuts is a small business, but it offers a wide range of services. It does not serve a narrow target market, as many businesses of this type might. Instead, it handles ladies', men's, and children's haircuts, along with a full range of salon services and manicures. There is therefore a fairly broad target market, albeit within a small geographic area.

Given this broad market scope, Happy Haircuts must decide whether to compete as a differentiated provider or as a low-cost provider. One of the main competitors is a nearby spa, which is differentiated. Aside from good service, there seems little to distinguish Happy Haircuts from other providers, which means it should pursue the cost leadership strategy. This strategy relies on efficient operations and high volumes that compensate for low margins. The shop must therefore run near capacity.

Business Process Models Overview

Process models help make sense of how a business generates revenue. Understanding these models helps a business "optimize the efficiency of connecting activities" (No author, 2013), which is especially valuable for a company seeking to be a low-cost provider to a broad market. Better processes can also enhance the customer service element at relatively low cost. At Happy Haircuts, there are two primary processes at work: the appointment and the walk-in. While one typically involves an established customer and the other a new customer, both follow roughly the same general workflow.

2 Sections Hidden · 305 words

The Customer Contact and Service Process190 words

First, the customer makes contact with the shop—via phone, email, or by walking in. The first point of contact is either the receptionist or the…

Process Optimization and Information Systems115 words

The key to business process modeling is to develop a clear understanding of a generic process and then identify ways to modify that process to better meet the business's objectives. For example, finding ways to improve scheduling or to book appointments…

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References

MindTools.com (2014). Porter's generic strategies. MindTools.com. Retrieved March 18, 2014 from http://www.mindtools.com/pages/article/newSTR_82.htm

No author. (2013). Business process modelling. BusinessBalls.com. Retrieved March 18, 2014 from http://www.businessballs.com/business-process-modelling.htm

Key Concepts in This Paper

Cost Leadership Porter's Strategies Process Modeling Scheduling Efficiency Customer Contact Capacity Utilization Service Differentiation Walk-in Process Brand Loyalty Small Business Operations