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

3120 Words Nov 9th, 2013 13 Pages
An Analysis of the U.S. Health Club Industry in 2004 and the Role of Bally Total Fitness

Executive Summary Introduction
The rise of the U.S. health club industry can be traced back to the 1980s and 1990s when the majority of health clubs emerged. By 2004, this $14 billion industry claimed 41 million members. Although the health club industry operated in a perfectly competitive market, several prominent key players gained large market share, including Bally Total Fitness and 24 hour Fitness. This perfect competition encouraged entry of smaller emerging firms into the industry. In 2004, the health club industry consisted of 26,000 clubs in the U.S. Of this growing market,
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Before long, Bally boasted presence in over 360 outlets in the U.S. and more than 50 internationally.
Analysis
A number of recognizable key factors are responsible for the rise of the health club phenomenon. The most notable factor was the growing concern of people’s overall health and well-being. Awareness about the impact of obesity-related diseases on the quality of life and available health resources was heightened, especially following a statement issued by the Surgeon General’s office, which estimated the annual mortality resulting from obesity complications to be over a quarter of a million. Further research at the time showed about 6 in 10 American adults were overweight or obese, with only 4 in 10 adults falling within the healthy people indicator bracket. Between 1964 and 2004, 28 Surgeon General’s reports had been issued, all of which described the epidemiology and health consequences of unhealthy behaviors.1. This general awareness resulted in about 17% of the U.S. population becoming more enthusiastically committed to fitness activities, with 63% recognizing the importance of fitness activities and 25% of whom actually attending health fitness clubs. Also, a recent survey showed that 37% of exercisers were motivated by the desire to control weight. Consciousness about body image and the desire to reduce stress and meet new people also had an impact on the health club phenomenon.

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