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Strategy and Positioning paper Essay

An overview of the organization that our team is working with is the hair industry for example hair salons, beauty stores and independent contractors. The type of product that we will talk about is the new hot trend for women, virgin hair which is known to be a multimillion dollar industry factors will be expressed how women are willing to spend hundreds on it even in this day and age with the economy being at a low. What is virgin hair? It is defined to be completely unprocessed and intact; it only qualifies as virgin hair if it meets vigorous standards which include not being permed, dyed, colored, bleached, and chemically processed in anyway. With all that has been listed here you would think that is all but there is more to it, it also has to come from a single donor and all cuticles must remain intact running in the same direction. http://www.everythingwigs.com/remy-hair-vs-virgin-hair-difference-s/122.htm The hair can come from any person and any country some countries having guide lines as far as the women being a certain age and hair being a certain length before being cut a lot of the most popular ones are Indian, Malaysian, and other European and Asian countries.

This hair can be used in a variety of ways from wigs to closure pieces and hair extensions are to just name a few. Guide lines are enforced when exporting the hair into the country a “duty” which is another name for a surcharge can be applied ranging from 1.5% to 3% must be paid in cash once arrived in the USA there are no sales tax on majority of the items. Famous actor Chris rock was interested in this hot trend himself and has made a documentary called Good Hair. In this documentary he visits India where tonsure ceremonies produce much of the hair sold in America; According to the information provided in the documentary “Hindu temple is where more than 10 million people — most of them poor — sacrifice their hair to God in a religious ceremony.

Ironically, once cut, religion goes out the window and a multi-million dollar industry rears its head: the sacrificed hair is processed and sold to hair dealers around the world who, in turn, sell it to local dealers who, in turn, sell it to salons and hair vendors.” http://www.huffingtonpost.com/zorianna-kit/chris-rocks-good-hair-doc_b_316952.html Information that will be provided through the rest of our paper will show an example of a SWOT and competitive analysis and its offering of our organization while using Porter’s five competitive forces model along with segmenting our market including geographic, demographic, psychographic and behavioral factors. Our team will give a description of our market and a written positioning statement that identifies several reasons that explains why our organization is different from our competitors.

A SWOT analysis has determined that the strengths of 100% virgin human hair will be high demand, accessible, convenient, and styling versatility. Weaknesses would be a possible price increase and decrease depending on the quality of the hair. Opportunities could be manufacturing your own brand which could be a way to make a good investment. This could be a way to gain personal insight into the marketplace and a better understanding of any and all internal and external factors. Threats include sheading of the product and a large market of competitors, there could be a possible inflation or deflation in prices again this could fall under where or when the product is purchase or made.

Porter’s Five Competitive Forces Model

When dealing with 100% virgin human hair bargaining can be a major factor depending on how much money is invested there may be a better opportunity to get a better price on the product. There is several products that can be marketed that feels the same but do not cost the amount of real 100% virgin human hair so investors must be careful and make sure that cheaper hair and it’s market do not take over, (“there is brands like Sensational and Chocolate brand which both retails at about $40 to $50 a bulk which in the Eastern region is one of the hottest sellers”) Lord, A. Weaves that Wow Us: 7 Brands Worth Trying Retrieved on June 9, 2014 from http://www.cocoandcreme.com/2010/10/weaves-that-wow-us-7-brands-worth-trying/

Bargaining power of buyer’s would be to try to get the product in large quantities so that the price would be cheaper and could be marketed in larger bulks, due to the versatility of the product a person can save hundreds of dollars per years because this particular brand of hair can last up to 1 full year versus having to spend $60 to $70 dollars every two or three weeks on an ok grade of hair. Within the market, new threats can be a heavy burden there are always new people trying to invest money in new profitable companies especially those that products can be priced at a higher margin but shed and do not last as long as %100 virgin human hair. Rivalry among existing competitions is the fact that cheaper hair companies only have a chance because of the economy other than that women who wear hair weave would always go with the better brand and quality so finding a product that is more expensive but last longer would be an excellent investment.

http://www.huffingtonpost.com/zorianna-kit/chris-rocks-good-hair-doc_b_316952.html http://www.everythingwigs.com/remy-hair-vs-virgin-hair-difference-s/122.htm

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