Some investment in appearance and comfort is worth while to create a relaxing atmosphere and feeling of operator’s interest. It is also helpful to have quality equipment seen and used, but an attractive waiting section is desired for a visit to the hairdresser is a personal occasion for customer and should be made a pleasant as possible.
The suburban location selected for the JANLEE STYLES salon is well established and has convenience store shopping along with a small arcade several specialty shops and a public parking area. Read More
A firm with an established market position can employ various tactics to make it harder for new firms to obtain a trial for their product. It may employ tying and exclusive dealing contracts which we discuss in chapter 15. It may also offer products only for lease, rather than sale, especially if the leases are for a long term a marketing technique commonly employed in the photocopying industry. A new firm can also offer products on a rental basis, but this involves a substantial investment in inventory.
If the entrant does not want to bargain with distributors, it may try to develop a favorable brand image by advertising directly to the final consumer, counting on the consumer to demand the product from distributors. The cost of cultivating a positive brand image will be largely sink: if unsuccessful, the entrant could hardly expect to sell its goodwill, recover its investment in differentiation, and leave the market.
Merger is an obvious method used to obtain a dominant market position. The formation of dominant firms by merger was an important motive for the passage of the Sherman act, which is after all an antitrust act. As we will see in chapter 10, the antitrust laws now place restrictions on such mergers. But there are strategies that a firm can employ to reach a dominant position through internal growth. Such strategies fall into three broad categories: strategies that act directly to raise rivals’ cost, and strategies that act indirectly to raise rivals costs through some aspect of the technology or marketing. 
