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Hair Salon or Barber Shop
• Ancient Egyptian times
• Hands that engraved on the walls for 20,000 years
belonged to the first to cut human hair
- To remove accumulated evil essence
- To renew energies
 Bloodletting process
 White bandages that contain blood
would hung outside to dry on a pole
 Red and white swirled pole came
into existence when the wind blew
it.
5th century
First barber shop was created in Ancient Greece
1893
First school of barbers had been opened up
19th century
Golden age of barber shops
1904
The end of the golden age of barber shops
1980s
Unisex barber shops were became more common in the world
until today
Founder Stella Lim
Current location Banting, Selangor
Motive for starting business To learn a technique, Interest
Main Services Hair cutting, perming
Estimated number of
customers
About 50 per day
Annual revenue About 72K
Capital needed for starting
the business
‘Leaves’ – about RM 15,000
‘Stella’ – about RM 50,000
 Miss Stella used to own a salon called ‘Leaves’ that
giving away by the owner.
 The business was running very well because it was
located at the main street of the town and most of the
resident love her hair styling skills.
 After a few years, she moved her shop location to
another area in the same town and she named it as
‘Stella’ because she wanted the saloon to represent her.
 The business of ‘Stella’ was not as good as ‘Leaves’
because the location was not in the uptown, but the old
customers still visit her salon.
 In year 2013, she change her business to a home
business because she found that this profession is too
competitive.
 It is also because she wants to maintain her passion and
to feed her family.
Tenze Hair Studio Sdn. Bhd.
No.18-1-2, Jalan Setia Prima Q U13/Q, Setia Alam
Sek U13, 40170 Shah Alam.
Owned by Mr. Avier Ng
Tenze Hair Studio Sdn. Bhd.
• 6 outlets
• Estimated 60 around customers per day
( including all outlets )
Main Services Provided
I. Hair do services
II. Magazine and advertisement shooting make
over
III. Artist concerts make over
History
2002
Started the first salon.
2004-2007
Opened the second and third salon.
2007-2012
• Focus in setting up the system of
management
• Train his team and build branding
2013-2014
Continue opened 3 salons
- Stella Salon
Competitors
“Pro” Salon
- Managed by
young people.
- Knows the most
trending
hairstyle.
“Mei Hua” Salon
- Hair styling
skills are equally
competitive as
each other.
- Provide good
customer
services and low
price.
“Kozo” Salon
- Located at
uptown of
Banting.
- Most systematic
among all of the
salons.
Methods of business to compete with their competitors
 Trust her customers ‘loyalty’.
 Stella said that “people have their
choices in choosing which kind of
salon they want.”
 She provides good customer service
--- Differentiated Products
She wouldn’t compete with her
competitors. Most important thing
is she did her best on customers.
- Tenze Hair Studio Sdn. Bhd.
Shop Name : AX Hair Style
Salon
Location : Jalan Prima C,
Setia Alam. (Just right
beside Tenze Hair Studio)
Specialized : Hair stylists,
Hair care
Shop Name : 1986 Hair Studio
Location : Jalan Prima C,
Setia Alam.
Specialized : It provides a café
and nail service for their
customers.
Shop name : De Hair Salon
Location : Same row
with “Tenze Hair Studio”
 “He never treated anyone as his competitors, but
only friends”
 “Having more friend is better than having more
enemies”
 Lack of funding and insufficient cash flow
 Did not work in systematically
 Facing a human resources problem
Obstacles Faced While Entering Markets
Pricing Decision
- Significant demand for their products depends on the
prices.
- Due to the intense competition and weak pricing
power, most of the monopolistic competitive firms
make minimal profits over time in the market.
Large number of
Firms
Weak Barrier
to Entry
Weak Pricing
Power
Differentiated
Product
Advertising
Which business is more commercially successful?
 Advertisement
Differentiated Product
Tenze Hair
Studio
Higher
Price
Systematic
Management
Create a
Website
(Advertise)
Tenze Hair Studio
Set up a
goal &
Achieve!
Get a
Tutor!
Better
Customer
Service

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Final slides

  • 1. Hair Salon or Barber Shop
  • 2. • Ancient Egyptian times • Hands that engraved on the walls for 20,000 years belonged to the first to cut human hair - To remove accumulated evil essence - To renew energies
  • 3.  Bloodletting process  White bandages that contain blood would hung outside to dry on a pole  Red and white swirled pole came into existence when the wind blew it.
  • 4. 5th century First barber shop was created in Ancient Greece 1893 First school of barbers had been opened up 19th century Golden age of barber shops 1904 The end of the golden age of barber shops 1980s Unisex barber shops were became more common in the world until today
  • 5.
  • 6. Founder Stella Lim Current location Banting, Selangor Motive for starting business To learn a technique, Interest Main Services Hair cutting, perming Estimated number of customers About 50 per day Annual revenue About 72K Capital needed for starting the business ‘Leaves’ – about RM 15,000 ‘Stella’ – about RM 50,000
  • 7.  Miss Stella used to own a salon called ‘Leaves’ that giving away by the owner.  The business was running very well because it was located at the main street of the town and most of the resident love her hair styling skills.
  • 8.  After a few years, she moved her shop location to another area in the same town and she named it as ‘Stella’ because she wanted the saloon to represent her.  The business of ‘Stella’ was not as good as ‘Leaves’ because the location was not in the uptown, but the old customers still visit her salon.
  • 9.  In year 2013, she change her business to a home business because she found that this profession is too competitive.  It is also because she wants to maintain her passion and to feed her family.
  • 10.
  • 11. Tenze Hair Studio Sdn. Bhd. No.18-1-2, Jalan Setia Prima Q U13/Q, Setia Alam Sek U13, 40170 Shah Alam. Owned by Mr. Avier Ng
  • 12. Tenze Hair Studio Sdn. Bhd. • 6 outlets • Estimated 60 around customers per day ( including all outlets )
  • 13. Main Services Provided I. Hair do services II. Magazine and advertisement shooting make over III. Artist concerts make over
  • 14. History 2002 Started the first salon. 2004-2007 Opened the second and third salon. 2007-2012 • Focus in setting up the system of management • Train his team and build branding 2013-2014 Continue opened 3 salons
  • 16. Competitors “Pro” Salon - Managed by young people. - Knows the most trending hairstyle. “Mei Hua” Salon - Hair styling skills are equally competitive as each other. - Provide good customer services and low price. “Kozo” Salon - Located at uptown of Banting. - Most systematic among all of the salons.
  • 17. Methods of business to compete with their competitors  Trust her customers ‘loyalty’.  Stella said that “people have their choices in choosing which kind of salon they want.”  She provides good customer service --- Differentiated Products She wouldn’t compete with her competitors. Most important thing is she did her best on customers.
  • 18. - Tenze Hair Studio Sdn. Bhd.
  • 19. Shop Name : AX Hair Style Salon Location : Jalan Prima C, Setia Alam. (Just right beside Tenze Hair Studio) Specialized : Hair stylists, Hair care
  • 20. Shop Name : 1986 Hair Studio Location : Jalan Prima C, Setia Alam. Specialized : It provides a café and nail service for their customers.
  • 21. Shop name : De Hair Salon Location : Same row with “Tenze Hair Studio”
  • 22.  “He never treated anyone as his competitors, but only friends”  “Having more friend is better than having more enemies”
  • 23.  Lack of funding and insufficient cash flow  Did not work in systematically  Facing a human resources problem
  • 24. Obstacles Faced While Entering Markets Pricing Decision - Significant demand for their products depends on the prices. - Due to the intense competition and weak pricing power, most of the monopolistic competitive firms make minimal profits over time in the market.
  • 25. Large number of Firms Weak Barrier to Entry Weak Pricing Power Differentiated Product Advertising
  • 26. Which business is more commercially successful?  Advertisement Differentiated Product Tenze Hair Studio
  • 27.
  • 29. Tenze Hair Studio Set up a goal & Achieve! Get a Tutor! Better Customer Service