Spa has been described as which improves the general wellbeing of an individual through a several professional spa services which encourages the renewal of mind, body and spirit (Bodeker, 2010). For a spa to be classified as a spa, it should provide at minimum two of the following three services: full body massage skin care treatments (i.e. facials); or body treatments (i.e., hydrotherapy or body scrubs).

The spa has roughly 200 employees who serve in various sections of the company. Spa Castle describes itself as a firm which goes beyond the standards of the industry through offering elegant combination of blissful spa services and treatment, unique ultramodern aqua therapy center and sauna, and a glut of traditional health offering from around the globe. Spa castle was established in 2007 in New York and it has continued to be dedicated in offering the ultimate, extra-ordinary experience to the end consumers.

The mission and vision on Spa castle if to offer a comforting, stimulating, atmosphere whereby clients are able to relax their body and mind, reconnect with their daily lives to their true aim through several holistic techniques like massage, body works, energy works, and hair styling (ISA, 2016). Spa Castle describes itself as a dependable destination whereby one can always come to escape the pressures of life, and rejuvenate their energy, soul, and lives. Spa castle has several outlets within America. According to The International SPA Association (ISPA), America’s Spa sector has surpassed $16 billion. The report went on to note that the sector has continued to witness steady growth with increase in general revenues, locations, number of spa visits, and revenues per visit. As of 2015, there were well over 21,000 spas throughout America. The primary reasons why people opt for/visits spa treatments ranges from medical reason and pain relief to relaxation and stress relief, while others visit the spas just to indulge and pamper themselves (ISA, 2016).

Globally, since 2007, the spa sector has been established to have added more than 700,000 jobs to the global market, beginning from 1.1 million people and growing to more than 1.9 million in 2013. The spa sector in America has been growing annually at a rate of 2.9%. Owing to the impressive growth, the spa sector is a high competitive sector where various firms are striving to strategically place themselves to ensure that they are appealing to the end consumer (ISA, 2016). Some of the well-known Spa’s in USA include, Ojai Valley Inn & Spa, Sonoma Mission Inn & Spa, Spa Internazionale at Fisher Island and Two Bunch Palms.
Though the nature of competition is intense, Spa castle has been able to post some profits. This has been attributed to it offering unique products and services which are appealing to the end consumer. The unique and excellent customer services has made it possible for Spa castle to have loyal customers and who have continued to play a crucial role in the success and profitability of the company. With regards to products and services offered by Spa castle, the salon area of the business offers both male and females with any style of hair styling services. When it comes to the spa business, the spas offer holistic methods of massage and bodywork treatments, Skin-care treatments and Hair, retailing skin-care and cosmetic merchandise and nail treatments.

The vision of Spa castle is to be a center which offers comforting, stimulating, atmosphere whereby clients are able to relax their body and mind, reconnect with their daily lives to their true aim through several holistic techniques. Its technique to ensure this vision is realized as been focused on offering an array of services and products which ultimately leads to a holistic relaxation on the part of the consumers. Its vision and technique has played a significant role in financial management of the company. A huge chunk of the finances of the company are channeled towards ensuring that the end consumers receive value for money. Moreover, the company has invested heavily in establishing state of the art spa centers which are fully equipped with ultramodern technologies and equipments and which would ultimately lead to the overall satisfaction of the end consumers. Lastly, the finances of the company are also used to ensure that it trains its employees with the latest techniques and skills and which would ensure that the end consumer offers high quality services to the end consumer.

Analysis of current financial situation

Towards the end of the financial year 2016, Spa castle posted revenues worth $10 billion (door, 2017). This was a rise in its revenues when compared to the previous financial year where it had recorded revenues worth $ 9 billion. However, it gross profit declined and this was attributed to tough business environment and intensity of the competition within the sector. Its rise in revenues was attributed to its other branches and from the increase in the number of women who visit the spa. The other reason that resulted to decline in its gross profit was attributed to rise in operational expenses.

When compared to other spa businesses, Spa castle did not perform very well since its competitors have been posting impressive results. A spa like Ojai Valley Inn & Spa posted revenues worth $19 billion (door, 2017). As a result of this, Spa castle has a lot to do in order to reach to the level of Ojai Valley Inn & Spa.

The company has recently been making headlines for the wrong reasons. The owners of the company have been charged for tax fraud issues. The four owners of the company were indicted for unwell to compensate some-over $620, 000 in sales tax, $207,000 for self-denial tax, $609,000 in corporate taxes, and $131,000 in Metropolitan Transportation Authority Surcharge tax. All this charges are likely to affect not only the image of the company but also its financial performance (Times, 2017).

Key terms and principles

To ensure that firms remain competitive enough, they need to constantly keep on reinventing itself (product and services) to ensure that it keeps up with the latest trends and align to the tastes and preferences of the end consumer. It is in line with this principles that Spa and Castle took it upon itself to renovate its spas (Nieuwenhuizen, Rossouw, & Badenhorst, 2008). The company recently opened a state of the art spa in New York to ensure it meets the needs of the end consumers. This aspect of reinventing its products and services, is both a current and future goal of Spa and Castle.

For firms to attract and retain customers, they need to diversify their services and products so that the end consumers are spoilt for a choice and are not limited. This is what Spa and Castle have done through diversifying its services and products like, sauna, whirlpool, jet bath, steam rooms, massages, mud bath, salt scrub, herbal body masks, reflexology and waxing among others. Diversification of products and services ensures that firms are able to ensure that customers remain loyal to their products.
Successful firms are the ones which segment their customers to ensure that they easily address the needs of each market segment (Nieuwenhuizen, Rossouw, & Badenhorst, 2008). Market segmentation enables firms to know how well their customers are responding to their products and how best they can be improved to make them more receptive by the end consumers.

It is for this reason that Spa Castle has segmented its market based on gender. Such a move ensures that needs to each gender are adequately meet and can enjoy the various services and products of the firm. Marketing and advertising are very essential to the survival of any firm since it is through marketing that the consumers become aware of the existence of a company together with its various products and services. Effective marketing strategies goes a long way in ensuring that the target audience are easily reached by the ads of the firm. Spa Castle has actively been marketing itself on various media channels. It has used both old (newsprint and radio) and digital (social media) platform to market itself.

Analysis of related Organizational Systems, Policies & Culture

Brush Creek Ranch is the other spa firm which describes itself as a grand destination which offers an ultra-private collection of historic guest ranches (Ranch, 2017). It is based in south central Wyoming. The company offers a wide variety of services and products besides those that can be found within a spa center. Other services include, fishing outdoor adventures, and beautiful sceneries. It is because of this extensive services that in 2017, it was named as the #1 resort hotel in US and the #3 hotel globally by travel+ leisure magazine.

The culture of the company is based on diversity, integrity, passion, collaboration, quality and accountability. Diversity entails offering a wide variety of products and services to the end consumer plus serving consumers from various nationalities or ethnic groups. Collaboration entails good working relationships and teamwork among the employees. Quality ensures that the end consumers receives high quality services (Ranch, 2017). Passion ensures that the staffs are fully committed and that they love their work. Accountability ensures that all employees become responsible for their actions and actions of their fellow staffs. Lastly, the aspect of integrity ensures that the interest of the company and that of the customers comes first ahead of that of the employee.
The strategy used by the firm entails targeting wide variety of customers like discerning travelers, adventurers who are ambitious, orgizational group retreats, family ranch vacations and destination weddings (Ranch, 2017). Brush Creek Ranch has tailored made its services and products to ensure that it meets that needs and demands of these market segments. The last strategy entails that the guest have maximum privacy while in the ranch. This is meant to ensure that the guest are able to have maximum relaxation. The orgizational is based at the heart of Wyoming’s famed Platte River Valley, between the Sierra Madre Mountain range and the magnificent Medicine Bow National Forest. Its strategic location is meant to ensure that privacy and relaxation on the part of the end consumer is attained (Ranch, 2017).


Investing in training and right equipment

Though the company (Spa Castle) has been focusing on establishing state of the art spas, it should also focus on equipping these spas with the latest equipments &well trained staffs. This would ensure that the provision of quality services is maintained. Poor/low standards would result to customers shifting their loyalty to rivalry firms since they are not getting value for money.

Diversification of products and services

By diversifying products and services, this would ensure that the end consumers are spoilt for choice. Diversification of products and services is what led to Brush Creek Ranch to be named as the best spa in America (Bodeker, 2010). Spa Castle can opt to introduce children’s play area. This would bring out the image of it been a family area where children can play in one area while their parents can go for massage in another area within the same compound.

Global expansion

Global expansion would ensure that Spa Castle has access to newer customers and which would lead to improvement in its bottom-line. Since the American spa market is saturated, seeking overseas market would ensure that the profitability of the firm does not stagnate or decline but to improve. Global expansion would ensure that Spa Castle has a wider customer base and access to raw materials.


As earlier noted, the spa sector in US is highly competitive hence to ensure that Spa castle survives through this, it might opt to partner with other spa firms that are highly skilled in certain areas where (Spa castle is not well experienced in (Bodeker, 2010). This partnerships would ensure that the firms compensate the weaknesses of each other hence enabling them to survive the American market. Partnerships would aid the partnering firms to access each other’s customers through referrals plus ensures that reduces on their expense and ensure that their partnerships become a one stop shop for all services and products that can be found in any Spa institution.

Market research

Conducting market research would offer an opportunity for Spa Castle to know what the end consumers desire and want. This information would make it possible for have a basis of how to tailor make its products and services. Information gathered from market research would enable Spa castle to know the main aspects of the competitors’ products and services hence informing them on how best to counter their marketing strategy (Bodeker, 2010). In short, it aids in strategic planning and execution.


The Spa sector in US has been performing exceptionally well owing to the rise of demand of their services. Spa castle is operating in a sector which highly competitive and which has been growing at a rate of 2.9% annually. Though Spa castle has been performing very well, it needs to up its game so that it can reach to the level of other spa firms which are posting impressive revenues. Partnerships, global expansion, diversification and investing in training and equipments would go a long way in enhancing its performance. The company also needs to deal with the issue of the tax fraud to ensure its operations and image are not affected by bad publicity.


door, G. (2017). Spa Castle . Retrieved from Glass door:,21.htm
Gerry Bodeker, M. C. (2010). Understanding the Global Spa Industry. New York: Routledge.
Goldberg, D. (2017, May 3). Controversial Spa Castle to reopen after extensive renovations. Retrieved from Time out:
ISA. (2016). U.S. SPA Industry study. Retrieved from International SPA Association:
ranch, b. c. (2017). brush creek ranch. Retrieved from brush creek ranch:
Nieuwenhuizen, C., Rossouw, D., & Badenhorst, J. A. (2008). Business management: A contemporary approach. Cape Town, South Africa: Juta.

Times, A. (2017). Queens’ Spa Castle owners charged with taxation fraud. Retrieved from Age Times:

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