SINCE 2016
HAIR STYLES D.C
It is a model that describes competitiveness within an industry, which allows developing strategies, based on five main forces.
RIVALRY AMONG COMPETITORS
“Rivalry is the most powerful forces of Michael Porter´s five competitive forces , it describes the relation and competition of firms , seeking success within a specific industry by successfully developing and maintain competitive advantage over its competitors.”
Rivalry in the industry is high, by the fact that hairdressing in Bogota it is extensive and each one offer something special in their service (competitive advantage). But in-home hairdessing industry it's small in Bogota, most of the cases are individual hairdressers and very few companies of these, so it's easy to have a competitive advantages of those and why not of hairdressings. Finally the transition toward internet has increased in the last years, reducing cost and increasing comfort and confidence to the customer.
To be the best in our business we must make additional products made by competitors are very few , so succeed have less competition and more demand in our Service . We must also achieve differentiation from our competitors and have more market power. Products or in this case would be the hairdressers supplementary service providing the service but not at home so you can have different advantages and may also be chosen above our own
"Firms can be in close competition with producers of substitute products from other industries.Competitive pressures arising from substitute products increas asthe relative price of these products decline,and customers can switch easily."
POTENTIAL DEVELOPMENT OF SUBSTITUE PRODUCTS
BARGANING POWER OF SUPPLIERS
"The bargaining power of suppliers affects the intensivity of competition of an industry, especially when there is a large nunber of suppliers, when there are only a few good substitute raw materials, or when the cost of switching raw material is especially high."
The barganing power of suppliers do not affect in the industry that we are working on, because we only need hairdressers who are interesting in a best way of work, these work that we are offer for them is relaxing and efficient for the hairdressers we said that because in the hairdressing saloon if they don’t have customers they have to wait. Also the hairdressers that work with us, has they own equipment to work. In the other hand, this force can affect us if we need something if we need anything related to the call center and we can have some
some dryers and irons to be used in the form of loan for our hairdressers.
The bargaining power of costumers in the market in which we are working on, is too low, because the costumers cant switch for another supplier of this kind of services, because the high quality service suppliers are few, by other hand, by the price they can find other options with lower prices, but the experience and the excellent service could not be found as if they take it with us.
BARGAINING POWER OF CONSUMERS
When customers represent a meyor force or buy in large,their bargaining power is a significant force affecting competition.Is the most important force affecting competitive advantage,being necessary to gain customer´s loyalty.
POTENTIAL ENTRY OF NEW COMPETITOR
“Whenever new firms can easily enter a particular industry, increasing competitiveness.Barriers like lack of technology, lack of expertise, strong customer loyalty, among others can restrict the entry of new forms.Nevertheless,numerous firms enter within industries with lower cost and outstanding quality, increasing competitiveness.”
As we could see before the industry of services have been growing significantly on the last year thanks to the promotion of the government, thanks to this the competition has become more tight taking into account the quality of service, lower prices, comfort, technology and other facts. The potential of these new competitors into the industry its very high because each one offer differents service and strategies to the customer, having competitive advantage on others. Therefore we need to monitor the new trends in the market (preferences) and make strategies to ensure a competitive advantage.