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Building A Competitive Strategy Case Study

DYNOMITE Haircuts Stage This case study concerns the needs and objectives of a particular business known as Dynomite Haircuts. Dynomite Haircuts first opened in a college town where it was the only business of its kind in a 10-mile radius. This was ideal as it allowed the company to establish roots, gain a solid reputation and client base and begin to expand in a marked and concerted manner. Now there is a much higher level of competition which has developed over time in this area. In spite of this increased competition, the business is still performing well. However, it could be performing even better: it could still reach a higher level of competition and effectiveness necessary to bring in a higher level of revenue. The areas that need to be improved are: scheduling, supply ordering, inventory management, collecting customer information and marketing. Once these areas are improved, and these obstacles are adequately overcome, nothing will stop Dynomite Haircuts from thriving with effectiveness and permanence.

II. Five Forces Analysis:

The first force in accordance with Porter is Supplier Power: this force determines how easy it is for supplier to make the costs of supplies more or less expensive (mindtools.com, 2014). The ability of suppliers to do this depends on a range of factors: "This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are" (mindtools.com, 2014). The ability of the supplier...

However, in this case, the reality of this force is mixed: it all depends on what types of supplies Myra chooses to buy. In the profession of hair grooming and care there are supplies available to every budget: it's really up to Myra in regards to whether she wants to spend more or to spend less: she can always find quality supplies regardless of her budget. This will not affect Myra's strategy for competitive advantage.
The second force according to Porter refers to the power of buyers to drive prices down. Such a force is impacted by "the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you" (mindtools.com, 2014). In the case of Myra, buyer power is not very high and this will not impact her strategy for competitive advantage. Buyers in this case have more power because of the rivalry present, but otherwise they can't strongly impact Myra's prices. Myra just has to be careful not to price herself out of her business.

The third force is the threat of rivalry. Rivalry refers to how many competitors a given business has. As alluded to earlier, the level of rivalry is exceedingly high and this is one of the elements which will have a strong impact on Myra's strategy for competitive advantage. More competitors means less power, as buyers can easily go elsewhere if they don't feel like they're getting the best deal from the company. The fourth of Porter's five forces refers…

Sources used in this document:
References

Ehmke, C. (2014). Strategies for Competitive Advantage . Retrieved from arizona.edu: http://ag.arizona.edu/arec/wemc/nichemarkets/05competitiveadvantage.pdf

Mindtools.com. (2014). Porter's Five Forces. Retrieved from mindtools.com: http://www.mindtools.com/pages/article/newTMC_08.htm

Porter, M. (2008). Competitive Strategy. New York: Simon and Schuster.
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