Final slides

Description of the history of the

business

Hair Salon or Barber Shop

• Ancient Egyptian times

• Hands that engraved on the walls for 20,000 years belonged to the first to cut human hair- To remove accumulated evil essence- To renew energies

Origin of Barbers

Bloodletting process

White bandages that contain blood would hung outside to dry on a pole

Red and white swirled pole came into existence when the wind blew it.

Origin of Barber Shops’ Pole

5th centuryFirst barber shop was created in Ancient Greece

1893First school of barbers had been opened up

19th centuryGolden age of barber shops

1904The end of the golden age of barber shops

1980s Unisex barber shops were became more common in the world

until today

History of Barber Shops

Brief Description

of “Stella” Salon

Founder Stella Lim

Current location Banting, Selangor

Motive for starting business To learn a technique, Interest

Main Services Hair cutting, perming

Estimated number of customers

About 50 per day

Annual revenue About 72K

Capital needed for starting the business

‘Leaves’ – about RM 15,000‘Stella’ – about RM 50,000

‘Stella’

Miss Stella used to own a salon called ‘Leaves’ that giving away by the owner.

The business was running very well because it was located at the main street of the town and most of the resident love her hair styling skills.

History

After a few years, she moved her shop location to another area in the same town and she named it as ‘Stella’ because she wanted the saloon to represent her.

The business of ‘Stella’ was not as good as ‘Leaves’ because the location was not in the uptown, but the old customers still visit her salon.

In year 2013, she change her business to a home business because she found that this profession is too competitive.

It is also because she wants to maintain her passion and to feed her family.

Brief Description

of Tenze Hair Studio

Tenze Hair Studio Sdn. Bhd.No.18-1-2, Jalan Setia Prima Q U13/Q, Setia Alam

Sek U13, 40170 Shah Alam.

Owned by Mr. Avier Ng

Tenze Hair Studio Sdn. Bhd.

• 6 outlets

• Estimated 60 around customers per day ( including all outlets )

Main Services Provided

I. Hair do services

II. Magazine and advertisement shooting make over

III. Artist concerts make over

History

2002Started the first salon.

2004-2007Opened the second and third salon.

2007-2012• Focus in setting up the system of

management• Train his team and build branding

2013-2014Continue opened 3 salons

- Stella Salon

Comparative Analysis of the Businesses’ Competitive Traits

Competitors

“Pro” Salon - Managed by

young people.- Knows the most

trending hairstyle.

“Mei Hua” Salon- Hair styling

skills are equally competitive as each other.

- Provide good customer services and low price.

“Kozo” Salon- Located at

uptown of Banting.

- Most systematic among all of the salons.

Methods of business to compete with their competitors

Trust her customers ‘loyalty’. Stella said that “people have their

choices in choosing which kind of salon they want.”

She provides good customer service --- Differentiated Products

She wouldn’t compete with her competitors. Most important thing is she did her best on customers.

- Tenze Hair Studio Sdn. Bhd.

Comparative Analysis of the Businesses’ Competitive Traits

Competitor 1

Shop Name : AX Hair Style Salon

Location : Jalan Prima C, Setia Alam. (Just right beside Tenze Hair Studio)

Specialized : Hair stylists, Hair care

Shop Name : 1986 Hair Studio

Location : Jalan Prima C, Setia Alam.

Specialized : It provides a café and nail service for their customers.

Competitor 2

Shop name : De Hair Salon

Location : Same row with “Tenze Hair Studio”

Competitor 3

“He never treated anyone as his competitors, but only friends”

“Having more friend is better than having more enemies”

Methods to compete with their competitors

Lack of funding and insufficient cash flow Did not work in systematically Facing a human resources problem

Obstacles while entering the market

Obstacles Faced While Entering Markets

Pricing Decision- Significant demand for their products depends on the

prices. - Due to the intense competition and weak pricing

power, most of the monopolistic competitive firms make minimal profits over time in the market.

Monopolistic Competitive Firms

Large number of

Firms

Weak Barrier to Entry

Weak Pricing Power

Differentiated Product

Advertising

Which business is more commercially successful?

Advertisement

Differentiated Product

Tenze Hair Studio

Recommendation

Stella Salon

HigherPrice

Systematic Management

Create a Website

(Advertise)

Tenze Hair Studio

Set up a goal &

Achieve!

Get a Tutor!

Better Customer Service