In combination with opening new institutes, the best strategic long-term approach for Beleza Natural would be to offer a broader range of services such as the different types of styling on various types of hair as well as potentially offering some service offerings to men. Expanding service offerings is a reliable means of growing revenue for the company with minimum risk but greatly benefiting the current customer base and attracting new consumers. Good service add-ons usually create returning consumers, make the company better positioned in the industry, can be part of the general optimization processes as aspects such as labor costs, marketing, and product costs have to be reconsidered within the context of the growth (Pasquarosa, 2019). The brand would benefit as this strategy will contribute to its recognition and diversity of offerings, not stagnating on one unique service that its recognized that may eventually fall out of style. Customer relationships will likely improve as well, given that they may have opportunities to experiment more with different styles and the salon will be attractive to those without curly hair as well. Finally, the competitive advantage of the company will increase as well, since it will no longer be serving a niche target market and hair style, but expanding various possibilities in the hair beauty industry.
A CSR action that would be fitting with Beleza Natural’s strategic direction as well as origin and vision, would be to invest in creating education programs for underprivileged teenagers at local community schools or centers. The focus of these programs would be feminine empowerment as well as general teaching general principles of professional beauty care, hair styling, and cosmetology. The CSR action is a win-win situation as it provides an educational opportunity for underprivileged families, which are the majority of the brand’s customers, in a way providing direct advertising as well due to the branding and sponsorship materials of the programs. Furthermore, it will most likely stimulate new generations of professionals in the industry as these teens grow up under the influence and mentorship of Beleza Natural, and the company can hire from a strong candidate pool to staff its new locations and fulfill new service offerings since they would be familiar with the company’s process and techniques.
References
Pasquarosa, N. (2019). Here’s how you can expand your service offerings to grow company revenue. Forbes. Web.