Competition
The competitors of Hand & Stone in the Denver, Colorado area are summarized in the table below:
Economic Growth and Stability
The relevant economic indicators for Denver, Colorado, where Hand & Stone operates are highlighted below for the current period June 2015 with comparative Year-To-Date figures:
Source: Metro Denver
One of the relevant economic indicators is the employment rate. As emphasized, “employment in Metro Denver rose 2.9 percent between April 2014 and 2015, or an additional 44,200 jobs during the period” . The information indicates that consumers have increased purchasing power and thereby, have greater abilities to purchase Hand & Stone’s products and services
The spa industry reported lucrative prospects for current and future organizations offering
diverse health and wellness services . As emphasized, “as going to the spa becomes less of
a unique luxury and more of an everyday occurrence to many people, spas as businesses are thriving.
The benefits provided to daily life by a spa experience are not going unnoticed, and spas are becoming
popular in large cities and small towns alike” . As such, the outlook for growth for
massage therapists was noted to be significantly optimistic, to wit: “demand for massage services will
grow as the baby-boom generation seeks these services as a way to help maintain their health as they
age” . The prospects for growth was explicitly indicated at 23% from
2012 to 2022 .
Political Trends
Political policies support expansion and growth of the spa industry. As emphasized, “Forbes
ranked Denver as the second-best city to launch a start-up business and NerdWallet ranked Denver
the fifth-best city in the U.S. for millennial-aged entrepreneurs. The solid business fundamentals in
Metro Denver ensure that the region will continue to expand in 2015 and beyond” . With the indicated growth prospects in the industry, as well as support from policy-makers, entry into the spa industry is perceived to be easily accessible.
Legal and Regulatory Issues
The new legislation regarding legalization of cannabis presented potentials of its incorporation in the spa industry. As noted, “more massage therapists in Denver are offering “mile high” massages, applying pot-infused oils on their patients” (Plotkin 1). The spas offering cannabis could exhibit competitive advantage in the area which could increase their current and future market shares. As such, Hand & Stone could look into the possibility of incorporating offering this specialized service, if and when significant demand from their clients are manifested.
Technological Advancements
Among the technological advancements in spas include floating spas, space spas, destination
spas, among others . As emphasized, “spas are incorporating new technologies like anti-
gravity massage beds and futuristic pods that simulate the experience of floating on a cloud”
. More information are hereby disclosed:
“There’s also a new obsession with in- or on-water flotation experiences and fitness: from
classes like aqua-spinning or stand-up paddleboard to new spa properties that actually float.
And some downright space-age innovations include a planned Space Resort (Barcelona)
where spa-goers will experience the world’s first “zero-gravity” spa” .
As such, Hand & Stone could look into these trends and determine whether their current and
future clientele would stipulate preferences or demand for these types of technological
advancements. A cost-benefit analysis could be undertaken to determine whether any investments
for these technological advancements would be significantly be beneficial to Hand & Stone, vis-à-
vis the costs to be incurred. Thus, the overall impact on the organization’s bottom-line should be
duly evaluated.
Sociocultural Trends
References
Bureau of Labor Statistics. "Massage Therapists: Job Outlook." 8 January 2014. Occupational Outlook Handbook. http://www.bls.gov/ooh/healthcare/massage-therapists.htm#tab-6. 28 June 2015.
Hcareers. "Spa industry employment: An outlook on lifestyle." n.d. Hcareers.com. http://www.hcareers.com/us/resourcecenter/tabid/306/articleid/268/default.aspx. 28 June 2015.
Metro Denver. "2015 Economic Forecast." 2015. metrodenver.org. http://www.metrodenver.org/research-reports/economic-forecasts/2015-economic-forecast/. 28 June 2015.
—. "Monthly Economic Indicators." June 2015. metrodenver.org. http://www.metrodenver.org/research-reports/monthly-economic-indicators/. 28 June 2015.
Plotkin, D. "Cannabis Trends To Look Out For In 2015." 29 January 2015. reset.me. http://reset.me/story/cannabis-trends-look-2015/. 28 June 2015.
Spafinder. "Top 10 Global Spa and Wellness Trends Forecast." 2014. spafinder.com. http://www.spafinder.com/newsletter/trends/2014/2014-trends-report.pdf. 28 June 2015.
