Cranium Filament Reductions 2.2 SWOT Analysis The following SWoT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Cranium Filament Reductions 2.2.1 Strengths Excellent retail space in a well-traveled mall Well-trained employees with good hair cutting skills with a wide style repertoire, and customer-focused business practices A wide range of services offered Competitive prices 2.2.2 Weaknesses As a new entrant to the market Cranium lacks brand equity that many of its competitors have earned over years of service. The struggle to appear continually on the edge in terms of fashion and style 2.2.3 Opportunities a steady growing market that is traditionally unaffected by the economic environment The ability to decrease marginal fixed costs as the customer base grows Increasing sales opportunities as more people from an individual family frequents Cranium 2.2.4 Threats Competition from already established chains a change in traffic patterns as they relate to the mall where Cranium is located 2.3 Competition and Buying Patterns Cranium Filament Reductions competitors include 1. Traditional Barbers: They rarely serve appointments, it is generally a walk-in service While barbers are usually willing to provide whatever cut you are interested in, they are generally providing straight-forward haircuts, typically on the conservative side. The advantages are an inexpensive service that is easy to use. Their disadvantages are an often conservative styling capacity, sometimes a long wait 2. Franchised"Quick Salons": An example of this would be Supercuts or Best Cuts. In essence, this is a franchised version of Cranium Filament Reductions. The advantage of this style is the store is the same from location to location and some people like this predictability 3. Independent salons: These shops typically focus on a specific niche and do not serve a wide group of customers The buying patterns of men and women are quite different typically men are more price or2.2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Cranium Filament Reductions. 2.2.1 Strengths • Excellent retail space in a well-traveled mall. • Well-trained employees with good hair cutting skills with a wide style repertoire, and customer-focused business practices. • A wide range of services offered. • Competitive prices. 2.2.2 Weaknesses • As a new entrant to the market, Cranium lacks brand equity that many of its competitors have earned over years of service. • The struggle to appear continually on the edge in terms of fashion and style. • Large costs associated with a start-up company. 2.2.3 Opportunities • A steady growing market that is traditionally unaffected by the economic environment. • The ability to decrease marginal fixed costs as the customer base grows. • Increasing sales opportunities as more people from an individual family frequents Cranium. 2.2.4 Threats • Competition from already established chains. • A change in traffic patterns as they relate to the mall where Cranium is located. 2.3 Competition and Buying Patterns Cranium Filament Reductions' competitors include: 1. Traditional Barbers: They rarely serve appointments, it is generally a walk-in service. While barbers are usually willing to provide whatever cut you are interested in, they are generally providing straight-forward haircuts, typically on the conservative side. The advantages are an inexpensive service that is easy to use. Their disadvantages are an often conservative styling capacity, sometimes a long wait. 2. Franchised "Quick Salons": An example of this would be Supercuts or Best Cuts. In essence, this is a franchised version of Cranium Filament Reductions. The advantage of this style is the store is the same from location to location and some people like this predictability. 3. Independent Salons: These shops typically focus on a specific niche and do not serve a wide group of customers. The buying patterns of men and women are quite different. Typically men are more price or Cranium Filament Reductions Page 6