Porters Five Step Analysis of UMUC Haircuts

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UMUC Haircut’s has been a successful organization for almost two decades, yet more recently there have been threats geared towards to the future and success of the business. I am writing this paper to inform Myra(Owner of UMUC Haircut’s) about the impactful forces aimed towards her business, along with a generic strategy to combat any known threats. Finally, I would like to propose which strategic business area needs improvement at UMUC Haircut’s. I plan to propose immediate action towards increasing brand exposure and customer information using an inbound marketing approach.

UMUC Haircuts needs to address all five of Porters Five Step analysis. This analysis should start with the threat of new entrants. This force involves competition effecting the overall growth and success of UMUC Haircuts and it holds a negative impact on the organization. This force should affect Myra’s strategy, and any future planning with this organization. Another force is the threat of substitute products or service. This threat is similar to the threat of new entrants and should not be taken lightly. When an organization is threatened by a substitute product or service, they may fall victim to a loss of clientele; 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 her to modify her business strategy. Rivalry among existing competition is another force, yet does not negatively nor positively affect her business. Myra has been able to keep up with existing competition for almost 20 years; this should not be a problem now. Buyer power may become more prevalent at UMUC Haircuts as buyers now have other options for services in the future and UMUC Haircuts has been...

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...ervice.

In order to fulfill the area of improvement, UMUC Haircut’s should focus on improving their customer information and marketing processes. One of the most effective ways to marketing a business is through in-bound marketing. In-bound marketing involves a firm promoting their organization through blogs, social media and websites. All of these forms of in-bound marketing can be useful when attempting to promote an organization. Using social media and creating a company website will be the first steps to increasing brand exposure and knowledge of customer information. Creating a website can allow buyers to view products and services and possible schedule appointments. These “digital” appointments can allow UMUC Haircut’s to become more organized and while fulfilling the needs of customers. In addition, inbound marketing is cost efficient and time efficient.

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