Free The Five Forces Model Case Study Sample


UMUCH haircuts has grown over the years since it was established. The general operation activities in UMUCH need to be improved to sustain their growth and profits. The incorporation of information technology to Myra’s business will be of much help to her in managing of her ever-growing operations.

A company website is in today’s electronic world, plays a huge role in activities and operations of many businesses. The Five Forces Model that are to be put into consideration are in analyzing the effects that a company website has on business:

•Buyer Power

•Supplier power•
•Threat of substitute products or services
•Threatof new entrants
•Rivalry among existing competitors
Buyer Power
A company website would enable UMUCH haircuts reach more customers. A website can reach a good number of potential customers thus increasing the target audience. Promotion of the business is also targeted in an effective way. The buying power of the customer is enhanced as he can make informed decisions on a variety of products offered that are listed in UMUCH’s website. This is also enhanced by the competitive nature of prices offered on their commodities. The customer also has control over the purchasing process.

Supplier power

The suppliers of UMUCH haircuts have little power based on the influence and target of UMUCH haircuts. They are restricted from increasing prices on commodities that they offer to enable them maintain the prices of services that they offer at an all-time low. This is necessitated by their target market trends in existence.

Threat of substitute products or services

UMUCH haircut is faced with great threats by substitute products. This is greatly attributed by the large number of competitors, who have their company websites in operation and have cross listed a range of products and services that they offer. Research and purchase of commodities on the internet is very general.

Rivalry among existing competitors

Rivalry between competitors of UMUCH haircuts would be on the increase due to the emergence of similar firms that offer the same range of commodities that they do. Firms will be competing on having a substantial market share and command of customers in the region.

Rivalry among existing competitors.

Threat of new entrants
UMUCH haircuts is also faced with a threat of new entrants into their market base. The internet has emerged as one of the most important factors in enhancing globalization making it easy for new participants find a new client bases.

Porter’s Generic Strategies

The generic strategy for UMUCH haircuts is one involving low costs and a broader market. A broad market has an effect of increasing demand for commodities offered by UMUCH haircuts, which is constantly maintained by setting low cost. As a result, they can use their size to reduce the powers of suppliers.

Strategic Business Areas and Process Improvement.

Various strategic areas of great concern arise as a result of the analysis of Porter’s Generis Strategies. They constitute activities related to the consumer, supplier, marketing and employees. Consumer related include activities such providing new and emerging methods of payment, advertising of a variety of commodities offered with an option of purchasing and interaction with customers by maintaining accounts with them. Activities revolving around marketing include creating awareness of new and existing products, enhanced customer outreach, promote the business in their undertakings and embracing its dynamic nature. Supply related activities to be looked at including management of supply chain and facilitation of the supplier. Reduced cost of their supplies is also a matter of great agency. Employee related activities include training them on emerging business environment trends such as globalization and providing for their needs and requirements in order to motivate them.

Customer Information and marketing

Management of customers can greatly be enhanced by use of websites. Customers can have the option of opening accounts in the website and be able to make all correspondence they require at the touch of a button. Special offers and various promotional tools can be put into place through the website. Interaction with customers is also greatly improved by use of email addresses. Comprehensive statistics reports provided by a website can be used in the analysis and review and the time that they spend sampling their various products. In addition, the business would use its website to schedule clients. Confidence on the company by customers is greatly enhanced by the provision of appropriate content in their website. Customer queries can conveniently be addressed, and potential clients view the business to be operating professionally. Websites are a cost effective method of advertising with great value attached to them in a business entry.
There is no limit attached to the amount of information availed in the website as is the case with other communication media. They are also dynamic and flexible in nature. It can easily be updated. They also have an impact of increasing the company’s interaction with its clients. Online forums can be hosted to facilitate better interaction with clients. They also give an organization a chance to promote themselves on a continuing basis. Websites have no time restrictions on communication. Process to be improved will help the organization reap more benefits as a result of such action.