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Sally Beauty Essay

484 words - 2 pages

Background:
Sally Beauty Holdings, Inc. also known as Sally Beauty Supply (SBS) is an international specialty retailer and distributor of professional beauty supplies with revenues of more than $2.6 billion annually. The Company sells and distributes through over 4,000 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Canada, Chile, Puerto Rico, Mexico, France, Ireland, Spain and Germany. Sally Beauty Supply stores offer more than 6,000 products for hair, skin, and nails through professional lines such as Clairol, L'Oreal, Wella and Conair, as well as an extensive selection of proprietary merchandise. SBS sell up to 9,800 professionally branded products ...view middle of the document...

What’s keeping SBS on the edge is giving the consumer the best quality hair products at a reasonable, affordable price. SBS is one of the dominant hair product retailers and the success of Sally’s is a matter of whether or not the brand can compete with a more diversified market and continue to dominate the hair care industry (Sally beauty supply, 2012).
The market’s potential of what can be bought and sold in the industry is limited only to the evolution of the beauty industry and the fast-pace changes in beauty and hair trends. For example, like the fashion industry, beauty trends come and go, and in order for SBS to remain dominant in the professional hair care supplier, they must recognize the value of these trends (Sally beauty supply, 2012).
Problem Statement:
Consumers perceptive on SBS store is that they cater toward hair stylist and they only carry hair products. So, when they shop at other stores such as Target or Walmart to buy other products such as make-up or cosmetics the consumer will pick up their hair products there as well instead of driving to another location just for hair products. Consumers were not aware of the high quality of products carried at SBS, as well as their pricing. SBS need to educate the consumer that SBS cater to both parties and it doesn’t matter if they are a hair stylist or not, SBS welcomes all.
Plan of Study / Research and Analysis:
In able to understand SBS and how they stay dominate in the hair care industry, analytical tools that I’m going to use for this research include a SWOT analysis, Five Forces Model, and Value Chain analysis for analyzing strategy and identifying possible future strategic moves. This will help me understand on how they keep themselves competitive.

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