Question

Explain what hair and beauty salon's competitive advantages are and how you will sustain these advantages over time? For instance, if your competition copies the advantages because they are successful, what will you do to counteract this? Are the advantages easy to copy or imitate?

In your opinion what is the likelihood that this proposed venture will succeed? Explain why/why not?

Answer 1

Hair and beauty salon's competitive advantage is often built on product or service differentiation rather than price. Beauty salon often seen as a luxury, demands from its customers premium price for good service.

Thus, advantage can come in the way of brand image. For example, Lakme Salon would gauge better trust from customers worldwide, than others.

Another aspect can be the type of hairdresser or beautician employed. More qualified they are in the art, better it is for the business

Another is services offered, while most services are common across beauty salons. A few may stand out like keratin treatment(for example) or giving hairdo that is trending. Thus, a business should find what makes them separate from the business.

But most important is customer satisfaction. Salon business' post-purchase behavior is more important. Thus, if a customer is delighted with service, then word of mouth publicity would bring more customers, than any of the above methods.

To sustain these advantaged over time, a business must keep track of them. Tracking their competitors is important, plus customer's expectation and satisfaction out of it. Or any new technology or method that can be employed in the business. Thus, the business needs to be a vigil to get any opportunity and improve the existing ones.

Firstly, if that is a new method or technique employed uniquely by one business. It is better to get it patented before anyone else uses it. However, if that is in terms of service than it is difficult to copy. Pricing may be copied but as mentioned in the beauty salon, service is more important than money. Although the price needs to be competitive.

Another advantage is the human resource, which should be retained as it can tarnish the business.

Usually, the service advantage is not easy to copy but any method or technique can be if not protected legally. Other than that, pricing can be copied and workers can be allured with better paychecks to work for the competition.

Chances of the venture to succeed are high, given the above advantages are properly used. One more thing to understand is marketing. The salon should have a website, where booking is easy. Apart from that, good outlets and courteous staff. Beauty salon service in intangible form is equally important.

The reason why it would succeed is because the competition is taken care of. Best workers are employed to give the service and business is always on the lookout for better methods and techniques. Plus, customer requirements are efficiently gauged, along with good marketing.

These all aspects make a business successful and thus this venture would also be