Porter’s Five Forces Analysis of Hair Salon 

Hair Salon and Beauty Salon is a type of business that offers haircuts, coloring, beard trimming, and other cosmetic treatment services. Today, we’ll discuss Porter’s five forces analysis of Hair Salon; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Products and services of Beauty & Hair Salon

• Hair cut
• Coloring
• Hair styling
• Massaging
• Tanning
• Skin care treatment
• Nails
• Aromatherapy
• Beard trimming
• Beard coloring and styling

Types of Beauty & Hair Salon

• Medical spas
• Day spas
• Spas
• Hair salons

Tools and equipment for Beauty & Hair Salon

• Straightening iron
• Gloves
• Scissors
• Spray bottles
• Apron
• Blow dryer
• Round brush
• Capes
• Combs
• Towels
• Hair rollers
• Hair colors
• Razor
• Hair clippers
• Trimmer clipper
• Chair mats

Porter’s five forces analysis of Hair Salon would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Hair Salon Porter’s five forces analysis of beauty salon business as follows;

Porter’s Five Forces Analysis of Hair Salon

Let’s discuss Porter’s five forces analysis of Hair Salon as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Hair Salon

The bargaining of suppliers is low in the Hair Salon and beauty salon business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Hair Salon Porter’s 5 forces analysis of beauty salon business are as follows;

I-Suppliers Availability

The tools, equipment, and supplies for Beauty & Hair Salon are easily available in various markets across the world. The scissors, combs, and other tools manufacturing companies have established a very large supply chain and distribution. However, they make sure that their products are readily available to all the salons across the world. Easily availability of tools and equipment decreases the bargaining power of suppliers.

II-Low Cost & No Differentiation

There multiple companies and local manufacturers are manufacturing combs, scissors, and towels and they have been doing it for centuries. They aren’t unique items, and they’re available at different prices of various qualities.

Bargaining Power of Buyers in Hair Salon

The bargaining of Buyers is Higher in the beauty salon business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the beauty salon business five forces analysis of the Hair Salon are as follows;

I-Multiple Alternative Salons

There are multiple Beauty & Hair Salons operating their salon business in various regions and countries across the world. They all offer the same type of haircut, shaving, color, trimming, and other services at almost the same price to the customers. Customers have the option to switch from one salon to another without incurring any cost.

II-Variety of Salons

There are types of salons; economy, affordable, and premium. They all offer the same type of services, but the location and in-salon experience is different. Some salons have established a very sophisticated infrastructure, decorative environment, and luxury experience; they charge a higher price and their target clients are rich, wealthy, and elite class.

Threat of New Entrants in Hair Salon

The threat of new entrants is Moderate and high in the beauty salon business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the beauty salon business five forces analysis of Hair Salon are as follows;

I-Skill & Expertise

Starting the Beauty & Hair Salon business requires a high level of professional skill and expertise. There are many training institutes and training programs, and they teach the art and skill of hair cutting, trimming, and other beauty services to the customers. After completing the program and earning the license, an individual could easily start a Beauty & Hair Salon business with a small investment.

II-Marketing

Launching the Beauty & Hair Salon business is not difficult, rather the difficult part is marketing and promoting your business to attract customers. It takes a lot of time for salons to earn the trust and confidence of customers with quality services and experience.

Threat of Substitutes to Hair Salon

The threat of substitute products and brands is higher in the beauty salon business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the beauty salon business 5 forces analysis of Hair Salon are as follows;

I-Multiple Salons

There are different types of salons available in the market, both affordable and premium. They all offer the same types of services to the customers; and they all charge more or less the same price depending on their service, quality, and category. Customers could easily switch from one salon to another without incurring a lot of cost.

Competitive Rivalry in Hair Salon

The competitive rivalry among Hair salons is very high in the beauty salon business as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the beauty salon business 5 forces analysis of the hair salon business are as follows;

I-Market Saturation

The Beauty & Hair Salon business has become highly competitive in recent years. The high competition has saturated the salon market and left little room for growth and new entrances. It becomes highly difficult for a newcomer to win the market share at once.

Conclusion: Hair Salon Porter’s Five Forces Analysis | Beauty salon business 5 Forces Analysis of Hair Salon

After an in-depth study of Porter’s five forces analysis of hair salon business; we have realized that Beauty & Hair Salon is a growing business. If you are learning about the Hair Salon 5 forces analysis beauty salon business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.