Environmental Analysis

Internal and External Environmental Analysis

Tiffany Tinsley

BUS/475

Aug 8, 2011

Patricia Madrill

Internal and External Environmental Analysis of Ageless Yoga

Ageless Yoga is a new yoga studio in the Yuma, Arizona area. The company will focus on the older demographic and those with physical limitations, but would still like to experience the benefits that come from the practice of yoga. Arthritis is quite a common disease that afflicts the joints, severely affecting flexibility and mobility. There are quite a few popular natural remedies for arthritis, but yoga for arthritis is one of the most potent treatments, and is in fact often recommended as a complimentary therapy (Kooperman and Ackerman 2009). The many health benefits of yoga coupled with a population that doubles each year with winter visitors is a recipe for a successful business that focuses on providing yoga for seniors.

Economic Forces

Economic forces refer to the nature and direction of the economy in which the business operates (Barnat, 2007). The current economy in Yuma is struggling. Yuma has the highest unemployment rate in the nation at 27.9% according to the Yuma Sun. This will affect any new business planning to open, but especially one that could be considered a luxury. While most people acknowledge the benefits of exercise, paying for classes at any type of gym or studio may not be a priority. The current economic climate will be a factor for the business; however, Ageless Yoga will be focusing primarily on the winter visitor segment of the population. A majority of these people are retired and not as directly impacted by the economy and the unemployment rate. There are other yoga studios in the Yuma area but the average price is over $10 per class and over $100 for a monthly membership. Ageless Yoga will offer memberships for as little as $40 per month and will attempt to collaborate with insurance companies to cover a percentage of the membership.

Legal and Regulatory Forces

The ancient practice of yoga has grown into a multi-billion dollar business and now a growing number of state governments are trying to regulate it (Napoli, 2009). Many states have already implemented educational laws to regulate yoga instruction schools, lumping them in with other vocational schools such as truck driving and pet grooming. There is a concern that there are people charging a lot of money for instruction and student were getting hurt due to improper training. Arizona first began regulating yoga instruction schools in 2004. Schools must answer a ten question statement of intent and pay an $800 application fee, a $1500 surety bond and CPA prepared financial documents to protect the student's tuition. To operate a studio, there are not regulations for the instructors, but liability insurance is essential and will probably be required for the property lease. The business will have to be registered with the state and because Ageless Yoga will sell products like yoga mats, the business will also need to register with the Arizona Department of Revenue. The additional yoga instructors will be contracted as independent contractors to avoid withholding taxes and being required to have workman's compensation insurance.

Competitive Analysis

There is really only one other yoga studio in the Yuma area and they do not offer any classes designed specifically for people with arthritis, but they do offer one class said to be perfect for seniors. The pricing is nearly double what Ageless Yoga will charge for a month of unlimited classes. Having a studio that is focused primarily on the seniors and those with physical limitations along with very competitive pricing will give Ageless Yoga a competitive advantage in the fitness market. Another competitive advantage will be the alliances built with local chiropractors and fitness experts to confirm the benefits of yoga and recommend Ageless Yoga to their clients.

Social Forces

Many people with limited physical capabilities are not as social as they would like, but often lack the opportunity to participate in social activities due to their limitations. Ageless Yoga would provide the opportunity for these individuals to socialize with others with physical limitations as well as improve their health. Many of the winter visitors come to Arizona for the health benefits of the milder winter weather and Ageless Yoga will coincide with their health goals. There are many active seniors that exercise on a regular basis and yoga is an activity that will fit in well with their current lifestyle.

Structures Forces

Ageless Yoga will begin in a strip mall location rather than a free standing structure. This will allow for a location that already has parking available as well as the utilities and restrooms installed. Another advantage to this type of structure will be ability to duplicate the studio when expanding into the Foothills area and then into other parts of Arizona. Building a free standing facility would increase the costs of construction that would in-turn necessitate an increase in class fees. One of the objectives of Ageless Yoga is to offer quality instruction at an affordable price, so leasing an existing space will contribute to the objective.

Resources

A yoga studio does not require a lot of equipment or resources. The flooring will be bamboo to bring in a natural feel as well as keep with a more environmentally friendly design. The only equipment needed will be to conduct the financial transactions. The yoga mats, blocks,