Fitness Industry

982 WordsOct 18, 20114 Pages
Industry Definition for Fitness Industry in Australia The fitness industry can be categorized into four fields which are fitness sites, fitness goods, fitness media and fitness services. These field elements do not work in isolation but in cooperation and competition. Hence, there are arrows interconnecting the various field nodes. 2.0 DENT-PC Analysis |Marco Force |Trend |Industry Impact |Opp or Treat | |Demographic |Age: Teens and early twenties participate actively in |Mid-aged customers are aware of the |Opportunity | | |organized sports. Middle-aged are aware of health and |importance…show more content…
| | 3.0 Porter’s Five-Forces • Threat of New Entrants Barriers to entry into the fitness industry differ across product and service segments. Start-up costs are relatively high due to obtaining equipment and premises and employing staff. Smaller fitness centers such as Pilate studio incur lower start-up costs. Personal training segment require minimal equipment and premises. Therefore, start-up costs are lower too. Customer loyalty to establish good reputation is crucial in the long-run for fitness business. • Threats of Substitutes There is a wide range of substitutes in the fitness industry. Outdoor recreational such as public parks for jogging and cycling, public swimming pools are cheaper than gym memberships. However, these activities depend on good weather. Besides, owning in-home exercise equipments are popular and convenient. However, it does not provide the same social interaction as a fitness center does. • Bargaining Power of Buyers Price charged on different fitness products and services provides customers the ability to put firms under pressure. Most fitness centers rely on membership revenue as primary source of income. Customers can switch centers increases customers influence over prices. Price membership and daily fees are lowered
Open Document