UMUC Haircuts Stage One
Wesley Mantlo
University Maryland University College
Information Systems in Organizations (IFSM 300)

UMUC Haircuts Stage One This report is based on gaining intellectual technology knowledge from a business standpoint. The Porters 5 Forces Analysis will be used as the beginning stage into this continuing project. UMUC Haircuts will be used as the background story to gain real world experience through creating solutions around Porters 5 Forces Analysis. This report is written in stages with gradual information given as is required. Stage II, minimally explains the forces, how they are relevant to the UMUC Haircuts, Impact and whether or not it will impact the strategy. Porters Five Forces are: Buyer Power, Supplier Power, Threat of Substitute Products or Services, Threat of New Entrants, and Rivalry among Existing Competitors. Buyer Power is the force that the buyer has on a product. UMUC Haircuts will want to bring in the most amounts of customers to gain the financial footstep in the Haircut industry. This is a positive impact and can affect the strategy. Supplier Power is big in the Haircut industry, especially as it pertains to personal hygiene. This is a positive impact and will affect the strategy. The threat of Substitutes in this industry is high with a neutral impact and does not affect the strategy. Generally, people who cut other peoples hair are personal friends or a fad and there is always months of opportunities where substitutes are not an option such as during Prom or special occasions. Threat of new entrants is a negative impact and can narrow the financial margin. Rivalry is inevitable and strains the industry. Possible lower prices from the new haircut businesses could pose a threat as well as the money invested and provided to open a franchise haircutterry. This is a negative impact and does affect