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Essay / Porters Five Step Analysis of UMUC Haircuts - 858
UMUC Haircut's has been a successful organization for almost two decades, but more recently, threats have emerged regarding the future and success of the business . I am writing this article to inform Myra (owner of UMUC Haircut's) of the impact forces directed against her business, as well as a generic strategy to combat any known threats. Finally, I would like to propose which strategic business area needs to be improved at UMUC Haircut. I plan to provide immediate action to increase brand exposure and customer insights using an inbound marketing approach. UMUC Haircuts must meet Porter's five-step analyses. This analysis should start with the threat of new entrants. This force involves competition which affects the overall growth and success of UMUC Haircuts and negatively impacts the organization. This strength is expected to affect Myra's strategy and any future planning with this organization. Another force is the threat of substitute products or services. This threat is similar to that of new entrants and should not be taken lightly. When an organization is threatened by a substitute product or service, it may suffer from loss of customers; mainly due to the fact that the product or service may be cheaper or of better quality. This force will negatively affect Myra and should cause it to change its business strategy. Rivalry among existing competitors is another force, but it neither negatively nor positively affects its business. Myra has been able to keep up with existing competition for almost 20 years; This shouldn't be a problem now. Buying power may become more prevalent at UMUC Haircuts as buyers now have other service options in the future and UMUC Haircuts has been...... middle of paper ...... service . In order to address the area of improvement, UMUC Haircut should focus on improving its customer information and marketing processes. One of the most effective ways to market a business is through inbound marketing. Inbound marketing involves a business promoting its organization through blogs, social media, and websites. All of these forms of inbound marketing can be useful when trying to promote an organization. Using social media and creating a business website will be the first steps to increasing brand visibility and customer information awareness. Creating a website can allow buyers to view products and services and possibly schedule appointments. These “digital” meetings can allow UMUC Haircut's to be more organized while meeting customer needs. Additionally, inbound marketing is cost-effective and fast.