Situation Analysis for the Tattoo Industry - Queanbeyan Performing Arts Centre - Case Study Example

Situation Analysis for the Tattoo Industry Name Institution Situation Analysis for the Tattoo Industry Introduction With the rising level of tattoo demands, many people are shifting in the industry making competition stiff. Therefore, to acquire the appropriate competitive advantage in the industry, investors need to understand the market economics influencing the industry (Bowen, 2015). The aim of the report is to develop a situation analysis for the tattoo industry, consider various uncontrollable environmental factors affecting the industry, competitor analysis, and SWOT analysis, and the target market. Moreover, the report would focus on the Queanbeyan Performing Arts Centre, which has seven years industrial experience and considers moving to a new market, Canberra. Industry Overview The tattoo industry includes the establishments responsible for the provision of tattoo services through ink injection under the skin, which alters the colouration of the skin permanently. Moreover, the industry also involves maintenance, designing, and modification of tattoo related services; however, it does not involve laser tattoo removal-activities. Over the past years, the tattoo industry has been exhibiting growth partly due to the popular culture involving the tattoo related programmes on the reality television-making tattoo less culturally taboo. Moreover, there have been increments in the demand of customized tattoos having the intricate designs instead of the predesigned tattoos, which stimulate the industrial revenue. In the coming years, the industry would grow since many people are increasingly developing interest for tattoos. Nonetheless, various factors including the public health initiatives and regulations could increase the industrials cost of operation, which in turn pose several barriers to the new industrial entrants. While the practice of tattooing originated from 5,200 years ago, the arrival of new ink pigments coupled with the development in the laser tattoo removal, there have been spurring demand for tattoos in the past years. indeed, today the tattoo artistes not only enjoy the benefits associated with the growth of the industry, but also their counterparts responsible for tattoo enhancement are busy attending to people regretting the faded tribal design that encircle their biceps or have been able to discover that various characters on their wrists have unwelcoming meaning. In Canberra, the numeric for tattoo is overwhelming which creates the best market the artistes. Annually, the industry generates $2.3 billion. Besides, the city has several tattoo parlours reflecting the level of competition with higher percentage of people with tattoos are between the age of 30 and 39 years. Factors of Uncontrollable Environment That Impact on the Industry Political Forces Tattoo industry is highly regulated considering the increasing demand, especially for the under-aged people. As a result, the organization has adequate measures of ensuring compliance with the age limit of tattooing. Besides, there is adequate compliance with the standards of ink used in tattoo. The organization places the tattoo on the places recommended by the customers since some employers tend to rejects employees with visible tattoos (The Department of Health, 2016). There have been establishment of tattoo schools in a bid to prevent the injury sustenance and violation of human rights. Therefore, the organization has qualified tattoo artistes as compliance means. The organization enjoys properly organized cross-boundary laws. Economic forces Tough economic times in Australia reduce the consumption behaviours of people, which in turn impacts the organization. With the rising cost of tattoo pigments, the organization has been increasing the costs of tattoo making the practices less affordable to many people. With provision of quality tattoos, the organization enjoys the confidence of the consumers. The rate of employment is low in Australia is slightly low making people to focus on their artistic skills. Socio-Cultural Forces Religion and culture are some of the factors influencing the tattoo industry as whole. Certain cultures and religion do not permit tattooing of the bodies, which affects the organizational expansion efforts greatly. Moreover, some employers do not accept visible tattoos while others do not completely accept the tattoos, which reduce the organizational market segments. Considering the organization operates in cross-culture regions, it experiences challenges associated with specific cultures and beliefs in certain regions (McCrindle, 2013). However, with the erosion of several cultural beliefs, the organization has been experiencing booming in its operations. Technology Forces With the rising level of technology, the consumers are seeking complex tattoos and tattooing machines causing minimum pain. The organization uses the latest piercing machine, which assists in the attraction of the customers. Through online platforms, the consumers are able to share their desired designs with the organization and search for the best tattoos within the organizational database. Legal Forces In Australia, there are strict measures that regulate the industry with responsibility lying with each state and territories. These regulations are covered in the criminal code and health act regulating the organizations to control infectious diseases. The organization complies with codes of practice contained in the Australian Standards and National Health and the Medical Research Council Guidelines. The place of work and employees are also registered (Queensland Government, 2016). The organization is a member of the Professional Tattooing Association of Australia. Additionally, it complies with the law that requires people with 18 years and above receive piercing except in Queensland and New South Wales whose age consent are 17 and 16 years. Competitor Analysis Tattoo industry is highly competitive especially with the ever-changing tastes and preferences of the consumers. Moreover, with the advent of the tattoo removing devices, organizations are forced to stay highly competitive and relevant in the market to attract more customers (The Finance Resource, 2016). Many organizations are currently offering customized tattoos in a bid to satisfy specific needs of the customers. Recent research undertaken by IBISWorld on the Australian tattooing industry shows that the industry experienced 3.9 per cent annual growth in average over the past half decade and currently achieving $100 million annually. The major competitor of the company is Gorilla Ink, which is a dynamic new stylish and personable studio of the body located in Australia (Gorilla Ink, 2016). The studio enjoys exemplary standards of customized works that meets specific needs of the customers and offers such services in a clean and conducive environment, which assist in attracting the customers. The institutional workers have the ability of accommodating all the tattoo needs of the customers from Japanese, Polyenian, small or those with big tusk, colour pieces to black and grey spectrum, and ensuring the customers have the best of tattoo experience (Caplan, 2000). In its Melbourne Best Tattoo Parlour, the organization treats all forms of tattoo designs, both small and big, with equal respect and handles them in similar manner with professions dedicated and enthusiasm on the satisfaction of the needs of the customers. In a bid to increase its market segment, Gorilla studio offers haircuts depending on the directive of the customers. Its Melbourne tattoo shops are in strategic locations and vary in the style of tattoo styles provided and the quality of colour work and lines executed. However, Gorilla boast of being the studio offering tattoo arts with varied design styles, articulated using the best quality, and amazing prices that meet the needs of the customers (IBISWorld, 2015). Organizational tattoo artistes are experienced and committed in the provision of the most comfortable tattoo experience. SWOT Analysis Strengths Weaknesses Provision of quality and customized tattoo that meet specific needs of the customers Adequate compliance with the required regulations and employment of qualified workers Easy to manage tattoo organizations Application of the latest technology in tattooing and removing the tattoo Proper financial base that permit effective execution of different mandates The industry is highly competitive especially with the unregulated entry into the market; the business are not strategically located as others Poor management of the staffs contributing to resignation and turn-over of the both the tattoo artistes and staff The achievement of satisfactory results requires several procedures Opportunities Threats Erosion of negative cultural beliefs on tattoo could assist in market exploitation Increased market demand and the number of satisfied customers Increasing technological development makes tattooing and removal easy Increased competitors entering the market Development of new strategies by the competitors are threat to organizational growth Poor performance of the tattoo artistes and failure of the machines in delivering the expectations of the customers (Marine Agency Corporation, 2015) Low profit margin due to high competitions could derail organizational performance. Customer and Size of Target Market With the deterioration in the cultural beliefs on the negative perceptions of tattoo, the organization is targeting different regions with varied cultures. Customers are also seeking businesses that are using the latest technology due to enhanced efficiency and reduction in the level of pains. However, the Australian government is regulating the age for tattooing making the organization to focus on target with 18 years and above (Gold Coast Tattoos, 2016). Since tattoo has no specific gender, the organization targets both men and women interested in tattoo arts. Although some of the employees are rejecting the workers with visual tattoo, the organizations targets people seeking for tattoo artistes with the ability of developing artworks in the body, which are difficult to notice. References Bowen, N. (2015, July 2). No end in sight to the tattoo craze. Retrieved September 3, 2016, from http://www.smh.com.au/small-business/entrepreneur/no-end-in-sight-to-the-tattoo-craze-20150630-gi1cwe.html Caplan, J. (2000). Written on the body: The tattoo in European and American history. Princeton, NJ: Princeton University Press. The Department of Health. (2016). Department of Health | Prevalence of tattooing and body piercing in the Australian community. Retrieved September 3, 2016, from http://www.health.gov.au/internet/main/publishing.nsf/Content/cda-pubs-cdi-2001-cdi2502-cdi2502i.htm The Finance Resource. (2016). TheFinanceResource.com - Free Tattoo Shop Business Plan. Retrieved September 3, 2016, from http://www.thefinanceresource.com/free_business_plans/free_tattoo_shop_business_plan.aspx Gold Coast Tattoos. (2016). Tattoos in Australia by the Numbers: The Story the Tattooing Trend Tells - Gold Coast Tattoos BlogGold Coast Tattoos Blog. Retrieved September 3, 2016, from http://www.goldcoasttattoos.com.au/blog/studio-news/tattoos-in-australia-by-the-numbers-the-story-the-tattooing-trend-tells Gorilla Ink. (2016). About Gorilla Ink. Retrieved September 3, 2016, from http://www.gorillaink.com.au/ IBISWorld. (2015, March 13). Tattoo Artists in the US Industry Market Research Report from IBISWorld Has Been Updated. Retrieved September 3, 2016, from http://www.prweb.com/releases/2015/03/prweb12581558.htm Marine Agency Corporation. (2015). The Ultimate Guide to Growing Your Tattoo Business - Marine Agency. Retrieved September 3, 2016, from https://marineagency.com/the-ultimate-guide-to-growing-your-tattoo-business/ McCrindle. (2013, March 11). Tattoos in Australia: Perceptions, Trends and Regrets. Retrieved September 3, 2016, from http://www.mccrindle.com.au/the-mccrindle-blog/tattoos_in_australia_perceptions-_trends_and_regrets Queensland Government. (2016). Tattoo industry regulation | Your rights, crime and the law | Queensland Government. Retrieved September 3, 2016, from https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulations/regulated-industries-and-licensing/regulated-industries-licensing-and-legislation/tattoo-industry-regulation/ Read More