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Case Study Analysis: JBS Beauty Salon
For five years, Mr. Jesus (Jess) Ualat worked as assistant to a well-known beauty salon entrepreneur. He was assigned to serve customers in one of his employer’s shops in a big mall in Manila. The shop’s manager taught Jess the various skills in serving the customers. He was just glad to learn everything from manicure to facial treatment. The shop was always full of customers and the manager knew that it was partly because of Jess.
Jess, however, had a childhood dream of putting up his own shop. When he felt he had learned enough, he bade his employer goodbye. He went straight to his hometown, a hundred kilometers north of Manila, and put up his own shop: Jesus Beauty Salon (JBS). His mother gave him sufficient money to finance his business. He hired two assistants and quickly trained them.
JBS is located at the city’s población, along the national highway going to Cagayan Valley. Across the highway in front of JBS is the city’s largest elementary school. On the right side of JBS is a row of shops such as those for air conditioning service, car maintenance, cart parts, and the like. On JBS’s left side are a paint dealer, a car electricity service, a supplier of floor tiles, among others.
The main commercial district where the banks, specialty stores, barber shops, and grocery stores are located 800 meters away from JBS.
After 10 months of operation, Jess started to have some doubts about the wisdom of maintaining his business. There were very few customers coming in. When he inquired from his friend who is also operating a beauty shop downtown, his friend said he has more customers that he could handle. Jess was shocked and disappointed. He believes that his shop has better facilities and staff than his competitors but he cannot believe that he is the one with a problem on insufficient demand.
Answer the following questions:
- If Jess missed anything that caused his problem, what is it? Explain.
- Is it time for Jess to fold up? Yes or No? Justify your answer.
- What business strategies can you suggest for JBS Beauty Salon? (Give 3 and explain each of them)
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