IS525 INFO STRATEGIC PLANNING

Competitive Advantage

Competitivity Advantage

Competitive Advantage

Teresa Johnston

Grantham University

September 12, 2020

Competitive advantage is best described on what is based on the customers needs and what is in their minds, that can lead to what you expect in any competition. When using competitive advantage in a real or imagined business they can be described by using 3 determinants. They are described has what benefits of your products, how much competition and who and what is your target market. The products are based on your customers needs and how it will value them. The target is to get to know your customer and how the product will or how it will improve their consumption for the services of the products you are providing to them.

With providing these services this will provide an economical growth for your business. If you provided different products and services other competition does not provided this will keep your customers coming back and attract new customers as well that are appealing to them. I have chosen to write a Competitive strategic plan on a Terrie’s Baber Shop.

Terrie’s Barber Shop started in business about 10 years ago and as times started to change and the needs of the shop needing to expand to offer more services than just cutting hair. We expanded it into offering full hair salon services. We also changed the name to Terrie’s Salon. With the expansion of the barber shop into a full hair salon we need to move the location to the city center to be able to offer our services to accommodate the growing needs of our customer and hoping to attract new business as well.

The services we offer at Terrie’s Salon for men are haircuts, professional shaving, and grooming services. The services for woman we offer are haircuts, hairstyling, colorings, and personal grooming services. With offering these types of services we have been able to maintain our customer base and attracted new customer as well. We offer a competitive pricing for the services offered.

Terrie’s salon uses goals as a guideline that will be used to lead to a vision of realization while the objectives are referred to identify the goals for the procedures that are laid out to achieve them. The goals and objectives for Terrie’s Salon are below:

· Attract new customer and increase the numbers of customer by offering salon services at a fair price while nurturing customers relationships.

· Satisfy the customer needs by offering the services they need.

· By hiring the most experienced employees to provide the professional services to our clientele.

· Listening to our customer for any negative or positive feed back to help improve our services in our salon.

Based on Porter’s Three Generic Strategies ways to be successful in business they would include the following leadership, differentiation, and the cost focus. The leadership at Terrie’s Salon realized it is important to try to keep the cost down while running Terrie’s Salon. With coming up with a plan to use technology to help run the business with installing a point of sale system to keep track of inventory, sales and space this helped by cutting down cost compared to the competitors in the area. This is Porters strategy of leadership cost.

Porters second business strategy that was implemented into Terrie’s salon was to make sure our products and services are first class to any competitors out there. We do this by making sure we have highly qualified professionals that can offer our services who take pride in their work, develop the client relationship to make the customer wanting to comeback. This will differentiate you from other competition and this is in line with Porters strategy on the products and service you sell.

Cost Focus is Porter’s third strategy for Terrie’s Salon is how we will need to attract and maintain our current clientele. At Terrie’s salon we will do this through our low-cost price, products, and services we can offer our customers based on their needs. This will be provided us a to maintain a customer loyal base while attracting new customers as well.

For Terrie’s salon to succeed using Porters Three generic strategies we will need to maintain a competitive advantage with the benefits of targeting our customer and competition. We must stay with our goals and objectives to be successful.

References

Porter, M. E. (1989). From competitive advantage to corporate strategy. In Readings in strategic management

Ostrom, L. T., & Wilhelmsen, C. A. (2016). Risk assessment of Design of Business.

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