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Kelly's Salon Case Study

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Kelly’s Salon is a local small business which was started in 1995. It has expanded business by giving services to both men and women. The Salon owner maintained her business that helped to increase profit margin by keeping good customer relationship and using word-of-month as a way to promote and advertise her business. Since, there are competitors around Kelly’s Salon; she is overwhelmed that her current business will be affected by a new competitor: Hair Cuttery that will open 5 miles away from her local. Kelly’s Salon lacks technology and she is seeking for a system analyst who can assist Kelly’s business to bring improvements in technological areas in her business. She also wants to maintain current growth of business and also to increase …show more content…

She knows that she can offer lower costs than the Hair Cuttery that is opening nearby, but she will need to make some improvements to do that. In addition, she need to offer different products and services, because her competitor has already another product to offer to customers which is manicure. Search for other alliances and make her business grow. Using the Cost leadership is the most useful and effective strategy, now that Kelly gained a large clientele and she needs to retain them by offering to them the usual good service at a low cost. Which are the main two ways of achieving this within a Cost Leadership strategy:
• Increasing profits by reducing costs, while charging industry-average prices.
• Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs (MindTools, n.d)
III. Business Process
Customer and Employee Scheduling is considered a systematic way of cost reduction. It uses the idea of ‘learning curve’ whereby employees are scheduled to perform tasks they have done repeatedly or scheduled a customer twice in a week. This system will help create an order for the business. And using the perfect software it will create benefits for her business. Benefits …show more content…

Kelly needs to use technology techniques to promote her business, the web technology can help her advertise her salon, and would attract customers from other places. The social media is the best tool for advertisement. She needs to create an online profile for her business and share it with her customers, which they will share with other potential customers as a sign of satisfaction of the service received. In addition of social media, Kelly can use the web technology to create Newsletters with promotions and advertising new prices and products that she can send by email or post online for her customers and others to see.
CONCLUSION
Kelly’s Salon has the benefit of being the first business in the Area, offering good service and has the back up of a large loyal clientele, Kelly needs to work on these points and make it stronger, first of all by lowering the prices then offering other products as a bonus. Furthermore, she needs to relay more on technology to promote her business and achieve the results she is aiming

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