An Analysis of the U.S. Health Club Industry in 2004 and the Role of Bally Total Fitness

"LA Fitness grew out of three clubs, each owned by one of the founders. In 1990 Fred Turock, Jeremy Taylor and David Turner decided to get together to jointly manage these clubs, with the aim of building up a network of gyms with first class facilities. In 1996 they created the LA Fitness brand and the following year they joined the top ten health and fitness club operators, catering to a wide variety of people of all shapes and sizes and with a huge range of goals. In 1999 the growth and success of the LA Fitness group led to a listing on the London Stock Exchange. In 2005 the team decided they needed more control - they wanted to make sure LA Fitness could continue to provide affordable membership and a fun environment for its growing

Obesity is defined as a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduce life expectancy and/or increased health problems. “The problem of obesity is increasing in the United States. Understanding the impact of social inequalities on health has become a public health priority in the new millennium. Social, political, and economic factors now are acknowledged to be "fundamental" causes of disease that affect behavior, beliefs, and biology.” (Goodman, 2003)  In the United States today, obesity has become an enormous problem. In the last 3 decades, the number of people overweight has increased dramatically. Obesity has not always been seen as a medical

"LA Fitness grew out of three clubs, each owned by one of the founders. In 1990 Fred Turock, Jeremy Taylor and David Turner decided to get together to jointly manage these clubs, with the aim of building up a network of gyms with first class facilities. In 1996 they created the LA Fitness brand and the following year they joined the top ten health and fitness club operators, catering to a wide variety of people of all shapes and sizes and with a huge range of goals. In 1999 the growth and success of the LA Fitness group led to a listing on the London Stock Exchange. In 2005 the team decided they needed more control - they wanted to make sure LA Fitness could continue to provide affordable membership and a fun environment for its growing

As per Healthy People 2020 most Americans do not consume healthy diets and are not physically active at levels needed to maintain proper health. As a result of these behaviors the nation has experienced a dramatic increase in obesity in the U.S with 1 in 3 adults (34.0%) and 1 and 6 children and adolescents (16.2%) are obese. In addition to grave health consequences of being overweight and obese. It significantly raises medical cost and causes a great burden on the U.S medical care delivery system ("Healthy People 2020," 2014, p. 1).

In the United States today, obesity has become an enormous problem. In the last 3 decades, the number of people overweight has increased dramatically. A study done by the Centers of Disease Control showed that since 1980, one third of our adult population has become overweight. America is the richest but also the fattest nation in the world and our obese backsides are the butt of jokes in every other country (Klein 28). The 1980s were a time when Americans suddenly started going crazy over dieting, jumping onto the treadmills, and buying prepackaged non-fat foods. However, while all of that was going on, the number of obese Americans began to increase. According to a report in the Journal of the American Medical Association, 58 million

Through this case study I will be discussing strategic management. Strategic management can be defined as a process where an organization attempts to determine what actions need to be taken to achieve the overall objectives and more importantly how to meet them (Mello, 2015, p. 114). For a company to strive and meet their goals, deadlines, and missions they must stay conscious of the strategic plan put in place for the success of the company. If the company does not have a good strategic plan the company could fail. With correct planning a company could succeed without fail. Something that needs to be taken into consideration in the strategic plan should be investing into the company’s human assets. At first it may look like it is causing the company more issues however in the long run it will strengthen the company and moral making a more successful company. This could help with customer relations, and the organization status which will help produce additional revenue for the company.

Many people dream of owning a business as opposed to working for another business. The benefits of owning a franchise is priceless if ran properly. This paper will show an estimate amount of variable costs and monthly sales in members and dollars for Snap Fitness. Also included are five examples of variable

The health club industry has continued to see an increase in the amount of health clubs/fitness centers. Since 1992, the United States has seen the number of health clubs increased by almost 40 percent, from 12,635 to 17,531 facilities. It has also seen an increase in membership by almost 60 percent, from 20.8 million to 32.8 million. What this all means for Fun 4 Life Fitness Center, LLC is that the market is ever growing which translates to more competition. Most fitness centers offer a variety of services to address the needs and convenience of the customers. Some of these services includes personal trainers, facilities with state-of-the-art equipment, and programs that cater to mostly every demographic.

Increasingly high obesity rates among the U.S. population have both personal and societal ramifications. For the individual, increased body mass has been linked to a myriad of health issues including heart disease, Type II diabetes, high cholesterol, cancer, strokes, kidney & liver disease, and hypertension. (Wilmore, et al., 2008) On a societal level, the Center for Disease Control estimates that obesity related medical care costs reached a staggering $147 billion in 2008 with obese patients costing $1,400 more per patient than those that fell into a "normal" weight rage (CDC). Obesity-related diseases may also contribute to millions of lost workdays and higher insurance premiums (CNBC).

You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance. For example, the franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars.

Nearly a third of adult Americans are obese (NCHS 2003). The occurrence of obesity in the United States’ adult population has more than doubled in the last 25 years, from about 15 percent in 1976 to more than 30 percent in 2000. Since obesity in the US has reached epidemic levels, it is important to understand as many aspects of the social determinants of this disease as possible. Obesity is not a standalone disorder; rather it has caused increases in increasing risks of disability, related diseases, and death as well as important and burdensome increases in the cost of health care (Allison, Zannolli, and Narayan 1999; Wang et al. 2003). Further, obesity is estimated as contributing to almost 15 percept of deaths in the US each year (Allison and Fontaine et al. 1999; McGinnis and Forge 1993; Rogers, Hummer, and Krueger 2003; Sturm 2002).

According to Centers for Disease Control and Prevention (2012), "more than one-third of U.S. adults (35.7%) are obese." This fact effectively underscores the seriousness of the issue at hand. Further, it means that obesity is affecting millions of people in the U.S. alone (either directly or indirectly). As McKnight (2006) points out, one of the leading causes of death in America is physical inactivity. Physical inactivity coupled with other factors has been branded a leading cause of obesity. Every day, people die from obesity related diseases including but not limited to hypertension and heart disease as others have their social lives greatly inhibited by the condition. In the recent past, debate has been rife on whether obesity should be branded a disease or a factor contributing to ill health. Whether classified as a disease or a factor contributing to ill health, the epidemic remains one of the main preventable causes of death not only in the U.S. but also across the world. In the modern day, both comfort and convenience have come to be regarded top human priories. In pursuance of these two "ideals", healthy living has seemingly taken a backseat. A sedentary lifestyle coupled with poor eating habits is slowly making America a fat nation and as a result, we are slowly gravitating towards poor health. It is this trend that is making obesity synonymous with disease. Obesity is however not a disease but one of the many factors that contribute to ill health.

The publics idea of health has evolved over the decades, similar to fashion in that it is continuously morphing and even trends have resurrected with new twists. Recent developments have seen widespread awareness of the importance of regular exercise and many benefits of a balanced diet. Yet despite the plethora of health and fitness methods and resources, the general population has never been so physically sedentary and out of shape. According to the national center for health statistics, America life expectancy has declined despite advances in the fitness industry, concerns over secondary conditions such as heart disease, cancer, and diabetes has created an urgency of public health officials as they try to mandate new strategies to fight this national epidemic.

Health and Fitness are a big aspect in the world today. This industry has had an incredible amount of growth over the past 30 years. The industry first became popular in the 1970 's, with the idea that it would not always be popular. "Most Americans rate their physical and emotional health as a top personal priority." This industry has two major demographic groups; The Boomers and the Gen Y generation. The main reason why the Industry has grown and is still growing is because people are becoming more aware of the importance to stay healthy and fit.

AHC is a health club known for its excellent health facilities which benefit their members with a wide range of exercises as well as facilities such as their café and beauty salon. However, the owner, Andy has come to realise that if his business ever were to expand, it couldn’t satisfy everyone and cater to each individual’s needs. AHC has many opportunities for further development and becoming an even more established health club with a wider target market but its competitors (other health clubs) pose as a threat towards them in pricing and facilities.