May 22, 2011
Management 303 SWOT Analysis of Regis Corporation
Section I – Organizational History
Regis Corporation, a Fortune 1000 company, specializes in beauty salons, hair restoration centers, and cosmetology education. The Company owns, franchises, or holds ownership interests in approximately 12,700 worldwide locations (Regis Corporation, 2009).
Regis' corporate and franchise locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle and Hair Club for Men and Women (Regis Corporation, 2009).
In addition, Regis maintains an ownership interest in Provalliance, which operates salons primarily in Europe, under the brands of Jean Louis David, Franck Provost and Saint Algue. Regis also maintains ownership interests in Empire Education Group in the U.S. and MY Style concepts in Japan. System-wide, these and other concepts are located in the U.S. and in over 30 other countries in North America, South America, Europe, Africa and Asia (Regis Corporation, 2009).
In its nearly 9,500 North American salons, Regis offers a wide range of hair care services including haircuts, styling and coloring, as well as a wide selection of professional hair care products (Regis Corporation, 2009).
Through their 96 Hair Club for Men and Women locations, Regis also offers a comprehensive menu of hair restoration products and services (Regis Corporation, 2009).
Section II – Strengths and Weaknesses
I would consider two of Regis Corporation’s strengths to be their longevity & brand recognition and salon geographic locations. Two of Regis Corporation’s weaknesses are poor management and poor management.
Strength #1- Longevity & Brand Recognition
Regis began 88 years ago and since then has grown into a multi-billion dollar company. Regis Corporation owns several well-known brands such as SuperCuts, Master Cuts, Vidal Sassoon, and ProCuts. They also have their own complete hair care line of products called DesignLine.
Strength #2- Salon Geographical Locations
Regis strategically places all of their salons in locations with high customer traffic flow such as malls, shopping centers, and Wal-Mart Supercenters. Having salons located in these areas allows for customer flexibility as well as a highly visible location for potential walk-in clientele. Regis is also has salons operating in Canada and Puerto Rico, as well as over 400 salons operating internationally in Europe (Regis Corporation, 2009).
Weakness #1- Poor Management
After reading many Regis employee reviews from glassdoor.com, the majority of cons the employees listed had to do the management. Employees described management as unconcerned with quality of stylists hired, unresponsive to employee’s needs and concerns, and low opportunity for advancement. Upper and lower level management need to be properly trained and incorporate employee empowerment which includes employee recognition, sharing leadership, and providing feedback ("Glassdoor.com,").
Weakness #2- Poor Customer Service
After reviewing many customer reviews, many of the complaints were centered on customer service issues. Some customers complained they were rushed through their service and there were complaints of having to wait over an hour for their service even though they had an appointment. Bad customer service is bad for the hair business because you not only loose that one client; you also lose any future referrals from the client and it can develop a bad reputation for the salon itself ("Glassdoor.com,").
Section III – Opportunities and Threats
Two current opportunities for Regis Corporation’s are their hair restoration businesses and the availability of real estate for new construction. Two of Regis Corporation’s current threats are the downturn of the general economic environment and their...