In general, all the companies face a number of threats from external competition. There have been many entries of international brands in the local Spa industry. These enable the people a lot of options. These options invariably lead to price reduction. There is the long standing and established brands that the companies in general have to compete. In this schema, the companies need to increase the service offering and reduce the prices. There is a mandatory need for the companies to focus on the price point in this system. These lead to overall reduction in the growth of the industry.
When the prices are reduced, it leads to the employees being paid less. There is increasing competition and hence employee turnover becomes another issue that the companies need to address based on this increasing competition. The companies struggle to maintain the employees based on the capital inflow and the need to reduce prices. There is a general schema where the people are not able to grow in this paradigm. Owing to this, there is redundancy observed. This is found to be the case for the companies in the local competitors and the international competition.
Hotel and spa industry is found to be a seasonal industry. It is during these times that the companies in the modern times look for ways to increase their service offering. However, there is only a limited customer pool for the companies to compete during the other times. In many of the spa services, there is only single ownership (Tabacchi, 2010). These cause the small businesses to be impacted. The small businesses are impacted by the known brands and international brands that dominate the markets during these times of seasonal spikes in tourists. Owing to these factors, there is a general suppression. Sometimes, these lead to more redundancy of options for consumer.
The next factor that the companies need to consider is the economic and political issues. There are the security issues that prevent the travellers from exploring. There is increasing political tensions that are found in the nation. These cause the people to generally not travel. The changes in the currency fluctuations cause the tourist from other nations to not visit Australia. There is increasing security threats that make the people not travel or use the spa services. These are considered to be a luxurious activity. The people discard these services during uncertain times. This again leads to suppression of the wages of the people. These are some of the most redundant activities for the spa services. Added to this, the real estate rates are found to be increasing. The spa industry in many of the cases is found to be struggling. The financial strains cause the cash flow to be impacted in the nation. This financial strain impact causes the companies to reduce their services. There is a lot of uncertainty in the nation based on these factors. The companies need to find ways to work cohesively with the stakeholders and ensure that all these stakeholders are benefitted in this schema.