Business industry

selected:

Hair salon

Name: Royce Hair Saloon

Royce Hair Salon Located in Oakland Commercial Centre, Seremban.

Founded in 2012 by Mr. Royce.

Only one branch as of today.

SERVICES OFFERED BY ROYCE HAIR

SALON:

Haircut

Hairwash

Hair treatment

Highlighting

Coloring

Daily number of customers

8-20

Number of employees: 2

Jalan Haruan of the Oakland Commercial Centre in the new town of Seremban, which is called Seremban 2

Basic Information About the Owner:

Royce is an Indian orphan who is raised by a

Chinese family.

He only speaks Mandarin and Cantonese.

His dream was to become a professional

hairstylist and start up his own hair salon one

day.

ReStyle Hair Salon

Located in Syopz Mall in Taylor’s University Lakeside

Campus.

Part of the A Cut Above Group.

Founded by Winnie Loo, award-winning hairstylist and

chairwoman of A Cut Above Group.

Established in 2009.

There are three other branches that are located in 1

Mont’Kiara, Tesco Mutiara Damansara and Sunway

Pyramid.

Services Provided by ReStyle Hair Salon

Haircut

Hairwash

Hair treatment

Perming

Highlighting

Coloring

Brazilian Keratin Treatment

Shampooing and Blowdry

Motive of Opening The Hair Salon

To target students and hostel residents to buy

the hairstyling services because of its

convenience.

Daily Number of Customers: 15 (On

Average)

Number of Employees: 2

Comparative Analysis of the

Businesses’ Competitive

Traits

10 Main Competitors:

- Impress Hair Salon

- Kenji Hair Salon

- Domnik Hair Salon

8 Main competitors:

- Spazio Hair Salon

- Hair Fonts

- APT Hair Salon

Number of Competitors

Brief Bios of Top 3 Competitors

1. Impress Hair Salon

• Located in Kemayan Square.

• Established much earlier than

Royce Hair Salon.

1. Spazio Hair Salon

• Located in SS15, Subang Jaya

• Established in 2010.

2. Kenji Hair Salon

• Located in Biz Avenue.

• Relatively reputable because of

its location.

• Offers promotion of their

services in Groupon MY.

2. Hair Fonts

• Located in Sunway Pyramid.

• Groupon has many deals with

Hair Fonts in which customers

can purchase them at a cheaper

price.

3. Domnik Hair Salon

• Located inside of Terminal One

Shopping Centre.

• It is one of the few hair salons

inside the mall.

• Offers quick haircut.

3. APT Hair Salon

• Located in Sunway Pyramid

• Consists of well-trained

hairstylist.

• Provides professional

hairstyling courses.

Strategies Used to Compete With Competitors

Strategy 1: Pricing

• Cheap pricing - Only

RM 20 for a standard

haircut for both male

and female.

• Affordable pricing.

• Student pricing.

• Various packages at a

cheaper price as

compared to buying

the service

sseparately

Strategies Used to Compete With Competitors

Strategy 2: Service and Product Variety

• Offers all services that

a standard hair salon

has.

• Have various hair

care products

displayed for sale.

• Offers professional

standard hairstyling

service.

• Have different

packages.

• Special hair treatment

called “Brazilian

Keratin Treatment”

• Provides beauty

services.

Strategies Used to Compete With Competitors

Strategy 3: Quality of Service

• Provides excellent

and professional

hairstyling service.

• Friendly hairstylists.

• Excellent augmented

service.

• Well-trained

hairstylists from A Cut

Above Academy.

• Provides useful tips

and advices for

customers on hair

maintenance.

Strategies Used to Compete With Competitors

Strategy 4: Location

• Located in a relatively

busy commercial

area.

• Oakland Commercial

Centre is located

nearby a residential

area.

• Easy for customers to

find.

• Located in Syopz Mall

which is in a

university.

• Attracts students,

lecturers and hostel

residents.

• Convenient for

students to get a

haircut.

Strategies Used to Compete With Competitors

Strategy 5: Brand Name Selection

• Has a distinctive

name because it is

named after the

owner.

• Easy for all regular

customers to

remember.

• The word “ReStyle”

automatically forms

an impression that it

is a hair salon.

• Sub-company of an

award-winning

company.

Obstacles Faced By New Businesses

Starting capital.

Abundant number of hair salons.

Difficult to create loyal customers.

Overcoming the Obstacles

Putting on an excellent first impression towards

new customers.

Constant promotion.

And of course, patience.

Nature of Markets

Perfectly Competitive

Provide standardized services and products.

No pricing power.

- Prices are fixed by the market.

- Customers will get their hair treatment from other

hair salons that offer a cheaper price.

Free to enter and exit the market.

Competitive Traits Royce Hair Salon

(Seremban-based)

ReStyle Hair Salon

(Klang Valley-based)

1. Number of competitors 5 to 10 6 to 15

2. Barrier to entry Weak. Since Royce Hair Salon is the only hair salon located

in Oakland Commercial Centre, Seremban, many

other hair salons can start up the same business freely.

Strong. ReStyle Hair Salon is dominant in Syopz Mall and

the main reason that the hair salon is started up in there is to cater convenience of the

students and the residents of the hostel.

3. Differentiated or Standardized products

Standardized Standardized

4. Pricing power Price taker Price taker

5. Verdict Perfect competition Perfect competition

Competitive Analysis Summary Table

Post-Analysis Conclusion

Business that is more commercially succesful: ReStyle Hair

Salon

Reason: i.) Established earlier than Royce Hair Salon.

ii.) Located in a very strategic location.

iii.) Their parent company is A Cut Above, an

award-winning, reputable hair salon.

RECOMMENDATIONS

Royce Hair Salon

Recommendation # 1: Choose the right location to bring in more

customers.

The current location where is Royce Hair Salon is located is not a

very busy area.

By choosing the right location where it is busy, it will attract more

customer’s attention.

Choosing a shoplot in a busy commercial area may be expensive,

but the return of the capital in the end will be greater.

Royce Hair Salon

Recommendation # 2: Add-On Services

Besides just hairstyling services, Royce Hair Salon should provide

more services.

Instead of calling it just a hair salon, why not make it become a one-

stop beauty centre?

The add-on services may include manicure and pedicure, spa, hot-

oil treatment, nose-hair treatment and much more.

ReStyle Hair Salon

Recommendation # 1: Rebooking system

REFERENCES

1. Personal interview with Mr. Royce, owner of Royce Hair Salon

in Seremban. Interviewed on 18th November 2014.

2. Personal interview with Shermei, manager of ReStyle Hair

Salon @ Syopz Mall, Klang Valley. Interviewed on 26th

November 2014.

3. A Cut Above Group official website,

http://acutabove.com.my/salon_restyle.html, accessed on 28th

November 2014.

4. Weng Wai (July 2014) Review: Spazio Hair Studio, SS15

Subang Jaya. Retrieved from MYMenLifestyle:

http://www.mymenlifestyle.com/fashion/review-spazio-hair-

studio-ss15/. Accessed on 29th November 2014.

5. Boo, Angeline (July 2013) English 2 Final Assignment:

Business Analysis. Retrieved from Angeline Boo E-Portfolio:

http://angelineboo.wix.com/fnbe-july-2013 - !about1/c100b.

Accessed on 29th November 2014.