Question

Suppose in your town there is only one hairstylist that usually charges around $60 for a woman’s haircut. While that is a bit above average in price, the business has great reviews because the stylists are well-trained, are very creative, and they have great customer service. After doing some market research you determine that there is room in the market for another styling shop in the area. How would you compete with this other shop? Meaning, what would your business-level strategy be? Try to be specific and highlight the factors that drive your chosen strategy.

Answer 1

One strategy to compete with the existing hairstylist is to differentiate your business by offering unique and valuable services. Another strategy could be to focus on exceptional customer service and create a personalized experience for each client. Additionally, offering competitive pricing and promotions can attract customers.

Step-by-step explanation:

One strategy to compete with the existing hairstylist is to differentiate your business by offering unique and valuable services. For example, you could specialize in trendy haircuts or offer specialized treatments for specific hair types. This would attract customers who are looking for something different and are willing to pay a premium for it.

Another strategy could be to focus on exceptional customer service and create a personalized experience for each client. This could include offering complimentary beverages, providing a relaxing and comfortable environment, and ensuring that each customer feels well taken care of.

In addition, you could consider offering competitive pricing and promotions to attract customers. This could include offering discounted services for new customers, loyalty programs, or bundle deals.