BUS 599 - Final Assignment

Running Head: COMPANY DESCRIPTION AND SWOT ANALYSIS 1

COMPANY DESCRIPTION AND SWOT ANALYSIS 2

Company Description and SWOT Analysis

Chet L. Walker

Strayer University

Dr. Andrea Banto

BUS 599 – Strategic Management

25 April 2020

Description of the Service

Creative Cuts and Styles will offer unique barbering services to both men and women from all walks of life. The business will have a physical location where both existing and new customers can visit and have their barbering needs achieved. Additionally, the business will offer Uber barbering services where our experienced and skilled personnel will visit our clients in their respective homes and attend to their needs. Creative Cuts and Styles will strive to provide quality barbering services to our customers at friendly prices.

Revision of the Company’s Mission Statement

Creative Cuts and Styles mission statement is “to focus on advancing haircuts and styles experience for every man's or woman's hair grooming to fit personal needs.” Customers will be provided with the specific barbering services that they request at prices that are not only modest but also affordable. The company will hire experienced, friendly and skilled personnel who are conversant with all barbering services including recent industry trends. As a result, the company will be able to provide top-notch services to every customer.

Industry Trends

The barbershop industry has evolved over time with the emergence of new personalized trends. Additionally, the interior design of barbershop is changing to create an environment that takes socialization to the next level. Television screens are becoming integral parts of barbershop design as they provide entertainment for customers. Also, the tradition of customers facing mirrors is shifting as barbershop owners are adopting a design that allows for people to face one another as opposed to them facing the mirrors. Such a design allows individuals to interact with one another and the chatting leads to the development of a stronger barber-customer relationship. When a barber is aware of a customer’s personality and lifestyle, it becomes easier for him or her to offer the client a perfect cut.

There are other ways through which barbershops are upping their game. For instance, most businesses are offering full-service spots such as facial treatments, massage, and manicures on top of other salon-like experience (Mizera, 2017). Additionally, others have revived the old art concerned with a hot shave as well as throwing a nip of Scotch for the decent measure. Cocktail bars that are fully stocked are the new norm for most barbershops. The bars are located at the back of most shops and offer curated menus for contemporary and legendary drinks. All these emerging barbershop trends are fueled by the embracement of accessibility and diversity by barbershops as opposed to them being only exclusive hangouts utilized by Bay Streeters as well as tattooed hipsters. According to an article published in the IBIS world, the US barbershops market has a value of $3.8bn as of 2020. The market is expected to experience a 0.9% growth within the same year.

Strategic Position

Creative Cuts and Styles will emphasize originality, quality, and top-notch service. The business will differentiate itself from other competitors through the provision of staff practitioners who are both certified and have the necessary training to understand customer dynamics to meet client expectations. Creative Cuts and Styles will also offer a unique atmosphere where customers can enjoy not only being pampered but also the camaraderie of both colleagues and friends. Therefore, customers can escape from daily stress. The barbershop will also focus on the creation of a community-oriented business. The focus will be on trust creation with our customers and the provision of valuable information that will assist all to practice a lifestyle that is not only healthy but also balanced.

Creative Cuts and Styles Distribution Channels

Creative Cuts and Styles will utilize social media platforms to advertise the services offered as well as the new hair cut designs (Alalwan et al., 2017). The customers who get the service and are pleased will also help spread the message to others who may also be willing to get their cuts there. Another strategy that will be implemented to widen the market share is the introduction of uber shaving. For this, there will be specific barbers who will be assigned the task of serving customers who may get difficulties in getting to the business center. When the service is delivered right at the doorsteps of the customers, it is likely that they opt for the Creative Cuts and Style services over that of the competitors.

Revision of Creative Cuts and Styles SWOT Matrix

Strengths 1. Targeted towards men and women and fit needs. 2. Highly skilled staff who will offer good haircuts. 3. Capabilities of cosmetologists working in unisex salon. 4. Location of business around professional workplaces.	Weaknesses 1. High prices compared to Supercut barbershops. 2. Income of business depend on the number of customers and employees. 3. Number of barbers and clients need to be high to cover all business expenses. 4. Lack of professional and customer-centric approach to clients at the start of the business.
Opportunities 1. Introducing Uber barbering services. 2. Increased use of social media initiatives to advertise haircuts & styles as well as new products to clients. 3. Current customers will help promote the business to new clients through social media. 4. Changing trends in barbershop industry provide opportunities for growth.	Threats 1. Other stiff competition from regular salons in the market. 2. Salons that are well established over an extended period. 3. Dreadlocks trend in the market based on some men and women wanting to keep their long. 4. Younger group deciding to wear their hair more natural without getting any type of cut.

Summary of Key Learnings from the SWOT Matrix

Creative Cuts and Styles seems to have many strong strengths as well as opportunities that can be utilized to capture a large portion of the U.S. barbershop market. For instance, the unique location of the business and staff who are skilled, experienced, friendly, and certified are two strengths that make this business viable. Additionally, the Uber barbering business model will ensure that the business stays ahead of well-established competitors. All in all, the business plan for Creative Cuts and Styles is solid, unique, and applicable and hence needs to be put into real practice.

References

Alalwan, A. A., Rana, N. P., Dwivedi, Y. K., & Algharabat, R. (2017). Social media in marketing: A review and analysis of the existing literature. Telematics and Informatics, 34(7), 1177-1190.

IBIS. (2020). Barber Shops in the US Market Size in 2020. IBISworld, 64.

Mizera, N. (2017). The Next Evolution of the Barbershop Has Arrived. Sharpmagazine, 23.