Bally Total Fitness Case Analysis

Although these are positive qualities of our company, our competitive advantage is costly. By having a product for every customer, we may not be focusing enough on our best product that could be generating the highest profit. If we invest the same amount for every product, it could lead to investing too much money on those products not performing as well; moreover, not investing enough on those products performing the

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

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

In the simulation, Managing across America the class explored the effects of power and influence on a company 's growth and development. This paper will discuss the opportunities and challenges for the Good Sport Company.

The majority of products offered by industry members are commodities and are weakly differentiated which increases rivalry.

There is also a high level of brand diversification. Each

The company has greatly expanded by acquiring several larger clubs in various countries. The acquired clubs include 171 clubs from Bally Total Fitness, 33 clubs from Lifestyle Family Fitness Clubs, Buffalo and Rochester Athletic Clubs in New York, and 10 Vision Quest Sport and Fitness clubs in Seattle area. LA Fitness franchise has taken the power of its global popularity and well-known and reliable brand to draw the businesspeople seeking to participate in a health and fitness

M club is a typical fitness business that mainly customers experience the service by them self in using those gym equipment's and machines. Although the club without personal gym coach to guide the customers hence the employees within the gym able to assist in basic fitness information and action guiltiness

As number of firms in the industry keeps increasing, greater competition force firms to earn more market share, innovate substitutes, produce differentiate products and be cost leadership to keep or improve their position in the industry. For example, some of the products of Billabong and Quiksilver are similar, consumer will choose to buy the one with lower price if they have similar function, or buy the one with higher price if the product is different from others. Thus, a firm could run well if it has different products and lower cost compared with rivals.

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

It would only make sense that the company is paying attention to what their customers need, want, and think. If the company is up for it, they will create a loyal customer and a good sector in the marketplace in regards to their products.

The most common reasons for discontinuing membership renewal are high membership cost and not receiving enough value

Focusing on one area instead of trying to offer too many products is becoming a more effective way to market. Companies will start finding niches and then position themselves as the definitive source of information for specific products and services (Gunelius, 2010). When marketing too many products it is easy to dilute the market as well as the benefits of each product. When features overlap consumers not only get confused as to the differences but ultimately pick the cheaper one. So the costs to market the higher priced items become a waste. Focusing on fewer products allows for a more valuable product and therefore more effective marketing techniques.

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.