External Factor Evaluation (EFE) Matrix
External Factors
1. Demographics favor high quality services
Weighted
Weight Rating
Score
0.10
4
0.4
2. Environmental factors
0.05
3
0.15
3. Trends in consumers- Increase of people willing to
0.10
pay more for higher quality services
2
0.2
4. Social influences
0.20
3
0.6
5. Smaller unknown spas offer better prices
6. High government taxes
0.05
0.05
3
3
0.15
0.15
7. Alternative goods to a treatment
0.20
4
0.8
8. Economic downturn
0.10
2
0.2
9. Climbing prices of services
0.05
3
0.15
10. Strength of brands
0.10
1
0.1
Total Weighted Scores
1.00
Comments
City life stress release via spa treatments and
beauty care
There is a larger percentage of wealthy
people in Manhattan who are willing to spend
money
Society's obsession with youth and
rejuvination
tax in NYC for all services are 8.375%
There are numerous alternatives to a spa
treatment
Our economy is entering recession and people
will cut back on unecessary services
Customers may not want to spend more for
services offered previously for lowered prices
Chain spas tend to draw larger groups of
customers because they trust the brand
2.9