Strategic Analysis : The Fitness Industry

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,

Suppliers refer to all the companies that provide the equipment that is located in the gyms. They tend to offer reduced rates when gyms buy in bulk and offer memberships at a discounted price to their employees. Suppliers must feel that their association with LA Fitness will provide them with greater visibility, especially amongst tourists, and will attract many new customers.

"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

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

The Fit Stop is a new firm that will be opening in the near future. The founder of the business is Susan Superfit. The company’s business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and provide customers with personalized advice geared to customer needs. The owner, Susan suffered an injury while engaging in sports activities. She came up with the idea for this business during her recovery. She found that while there were plenty of business that sold fitness and conditioning equipment, they lacked in knowledge. They often gave poor advice on how to use the equipment and what was best to purchase

Fitness is one of the most growing industries in the world. We see it everywhere at the stores, on our televisions, and all around us. We were taught in school that we need to stay fit and healthy or we would become fat and obese. Fitness is so big now because of our recent problems with obesity. The problem with trying to stay fit is it takes and a lot of people do not have time, so companies make workouts that take less than an hour. You look at these people and they are fit there are not heavy people, everybody get results. The sad thing is they were fit from something else and a company just told them to be in this video and we will pay you. The bad thing about the fitness is there are a lot of people that are dishonest and lie about how they got their body. The fitness

Fitness is in. The percentage of people belonging to health clubs and gyms has doubled over the past 20 years. More growth is expected, fueled by an aging Baby Boomer generation in search of eternal youth and the reality that regular exercise can prevent or control diseases that are driving health care costs relentlessly upward. The 24/7 fitness opportunity is the newest model of fitness centers today.

Anytime fitness can boost the profitability of the division by convincing current members of purchasing the program by adding it at a lower price because their member status

The bargaining power of customers determines how much customers can impose pressure on margins and volumes.

Our company, Eli-Gar LTD. are the parent company of Gold’s Gym of South Texas and have been in the fitness industry since 2005. We have focused our growth in North Laredo and the Rio Grande Valley, however, in recent years our group have come to the realization that Laredo is a very different city from what it was 11 years ago. In the past, many businesses may not have deemed it financially responsible to invest their money in an underdeveloped area such as South Laredo, but times have changed and we feel that South Laredo deserve all the amenities and services that may currently only be offered in North Laredo.

Effective and efficient companies will need information on the country and the industry before setting up their operation in the stated area. This report focuses on Fitness First as one of the leading global health club companies and Singapore as the chosen country. The purpose of this report is to provide the PESTLE analysis on Singapore along with the Porter’s 5 forces analysis on fitness industry in the country, to understand how the company entered the industry’s market. The structure of this report will be as following; company background, country background, PESTLE analysis, Porter’s five forces, strategic recommendations, and the conclusion.

Limited bargaining leverage helps Lululemon Athletica, which have a short-term positive impact on this entity, which adds to its value. "Large number of customers (Lululemon Athletica)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.

The market greatly depends on how powerful buyers are in terms of their willingness to pay certain prices. The following determines the bargaining power of buyers

Issues containing weight control, fitness, and nutrition are a prime subject in today 's culture. Completive companies are existent and they have many different levels of health clubs and fitness centers; this contains everything thing from price, equipment, staff , activities and classes offered. In the present time, topics being subjected through the industry are; disease control and research, diet and fitness trends of 2005, performance running, life balance, eating and sleeping right, working out according to personality and foods to lower cholesterol. Many people from The States are on a constant search for what is new, healthy and trendy. Health and fitness clubs were put in our society to make people feel and look good, and now not only are they there for that but they are making a large profit as

There are also some threats for Les Mills, as more gym arise the more competitors they have, the new cheaper gym may lead to the clients moving to the other gyms, so it is very important for Les Mills to provide some special deal for the younger age group and students, or create a different membership card for higher-class can enjoy and use more equipment like the SPA or the private room.