Health Club

1522 WordsMay 23, 20117 Pages
Question 2 What is driving the health club phenomenon? What are the basic economics of the health club industry? What value is created? What does it cost to deliver that value? How do these costs behave? Selected Answer: The driving points of health club phenomenon are: Growing awareness about health related issues and concern about obesity and its effects among Americans is one of the key elements of the health club phenomena. Increasing desire to maintain and control weight, get in shape, meet people and reduce stress has also got people going to the health clubs regularly. Several health clubs identified the new needs of consumers and built facilities that are one-stop centers for most of their health and fitness needs. Consumers get…show more content…
Describe and characterize the strength of each force and then consider how they interact to determine industry attractiveness. Question 4 What do you see as the key trends in the industry in 2004? How do you think these trends will affect profitability over time? Selected Answer: Some of the trends in the health club industries as seen and forecasted by experts are: Consolidation of several health clubs and expansion of few others by going public to obtain funds and confidence from investors. Convenience and availability of basic facilities would continue to lure members as they are on the run and need a quick workout at a place that is close by. Another trend that was catching up was Pay-as-you-go pricing where members did not want to bind in a yearly commitment but preferred to pay per visit. Many clubs such as Ballys adopted the system and were able to lure members. Health club were primarily targeted towards demographic that was within the age group 18-34. However, they are now diversifying their target market to include not only kids but also baby boomers that have shown active participation in health clubs over the years. To add to the already existing programs clubs resort to providing their members with more focused approach on weight control by offering subsidized exercise programs. Concerns about obesity are also addressed by clubs by - - - - - offering customized work-out regimes Feedback: Question 5 What advantages did
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