Sport Clips: Haircuts
Sport Clips: Haircuts
Short term strategies
In the short term, the company should employ staffs who are qualified and with experience. This would ensure that its clients are satisfied with its services. This would further increase the customer base of the company.
Long term strategies
Some of the long term strategies to build on the business include purchasing extra stores to increase the market share in the areas of operation. The company would plan to be a market leader in its area of operation.
Actions to support the short term and long term strategy
As the CEO, various steps need to be taken to make sure that the long, as well as long term strategies, are attained. A decisive marketing strategy should be adopted to create awareness of products to clients. A recruiting strategy will be used for employees in the company are qualified and able to deliver. New opportunities to be identified so as to increase the chances of business success. Staff to be remunerated well to ensure the company attracts the best talent, Communication within the organization to be enhanced to ensure policies are understood well among the staff.
Competitive advantage
The company has sufficient resources to ensure implementation of its policies and establishment of new business stores. It has various ways of recruiting and training its staff hence it has the capability of getting qualified staff. It has various stores located in different parts, and this enables it to utilize the market in these areas.
Porter’s five forces of competition
Threat of substitutes: The Company hascompetitors offering similar services as it offers and this gives its potential clients options to make a choice. These include hair cuttery, great clips and military bases.
Threat of new entrants: The Company is also getting a threat from new entrants in the market. These are taking part of its market share hence reducing the company’s sales. New competitors in the same field as Spot Clips comprise of Knockouts and Floyd’s.
Intense rivalry among existing players: Thereis intenserivalry between the company and the existing players in the industry. This further intensifies competition in the areas. The rivalry is created because the companies competing over similar clients.
Bargaining power of suppliers: Thesuppliers have a strong bargaining power. This is because there are limited substitutes available to supplies and switching cost from one supplier to another is high.
Bargaining power of buyers: Thebuyers have high bargaining power due to various reasons. This is because the cost of them switching to other competitors’ products is low. The cost of shopping is also low.
SWOT analysis for the company.
| Strengths
The company has sufficient resources. It has high quality products. Its brand name has been established, and it is strong. |
Weakness
Unprofitable stores. Inconsistent organizational structure with the operational and growth strategies.
|
| Opportunities
Purchasing of existing stores. Opening of new stores. Diversity into other industries. Forming partnership for purchasing entire regions. Reclaiming of remaining shareholder equity from business. |
Threats
Stylists stealing client information and creating their own salons. New government regulations like high income tax rates. |
External environment for the company
This comprises of government policies and competitors with the company.
Internal environment for the company
This entails failure to have a succession plan and failure to have consistency between the organizational structure and the growth strategies.
Is this your assignment or some part of it?
We can do it for you! Click to Order!
