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Umuc Case Study 1

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STAGE 1, UMUC HAIRCUTS CASE STUDY
Professor Diana Hill
University of Maryland, University College

I. Introduction
Myra Morningstar has been operating her expansive business, UMUC Haircuts, for nearly two decades. The business started as a barbershop, but grew into a full-scale hair salon. Recently, there has been a request for UMUC Haircuts to provide additional services from loyal customers, while businesses that could threaten Myra’s shop have been popping up in the local area. As a Systems Analyst, a look will be taken to determine how Myra can improve her business, improve business processes and allow UMUC Haircuts to maintain a competitive advantage over local rivalries.

II. Five Forces Analysis a. Buyer Power i. The power that a customer and buyer has is high because without customers there is no business. It is strong when the customer has many options for services they are looking to receive. When the buyer power is low, the customer doesn’t have many option s and will pay what the current price is for the product. Right now buyer power is medium for UMUC haircuts since there is beginning to be competition in the area. With new competition opening up in the area, this could affect the competitive advantage in buyer’s power for UMUC Haircuts. If not addressed, it can have a negative impact on UMUC Haircuts and should affect Myra’s Cost Leadership strategy. b. Supplier Power ii. This is an extremely important aspect of the business as customers wants quality products just as much as they want quality service. It is essential that Myra makes herself knowledgeable on inventory maintenance or bring in someone that is capable. It is also vital to establish a good repertoire with suppliers (or directly with the manufacturer) to ensure that best prices are always given, or that Myra could receive a distributer

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