The Threat Of New Entrants

The barrier to enter Biotechnology industry is high. The first barrier is the extensive requirements in funding coming from heavy expenditures in R&D, along with the risk of little to no returns or even heavy losses if the drug fails to reach the market. Regulatory environment partly contributes to the barrier as the new drug approval process can be time-consuming with relatively 89% of failure to pass through. The second barrier is specialization. Companies with knowledge in obscure diseases will enjoy low threat of new entrant for there are few experts in the field.

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,

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,

Especially in the food industry, the buyers always had and always will have a very high power because of all of the variety the market can offer. A surprising thing about Chipotle customers is that their loyalty is based on how the food taste but as I mention before, consumers in generally want to change their food habit regularly, so it is not normal in this industry that a person eats more than three times a week in the same restaurant, that is why buyers here with

The health club industry has continued to see an increase in the amount of health clubs/fitness centers. Since 1992, the United States has seen the number of health clubs increased by almost 40 percent, from 12,635 to 17,531 facilities. It has also seen an increase in membership by almost 60 percent, from 20.8 million to 32.8 million. What this all means for Fun 4 Life Fitness Center, LLC is that the market is ever growing which translates to more competition. Most fitness centers offer a variety of services to address the needs and convenience of the customers. Some of these services includes personal trainers, facilities with state-of-the-art equipment, and programs that cater to mostly every demographic.

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.

Bargaining Power of Suppliers: Suppliers for Company G are numerous. Giving Company G the advantage. Depending on price the suppliers maybe able to negotiate at a certain level depending on quantity which turns the tables.

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.

Powerful customer-the flip side of powerful suppliers-can capture more value by forcing down prices, demanding better quality or more service, and generally playing industry participants off against one another at the expense of industry profitability. Buyers are powerful if they have negotiating leverage relative to industry participants, especially if they are price sensitive, using their clout primarily to pressure price reduction. The bargaining power of the buyers is very high as now a day’s tickets can be booked online and if they can go for the cheapest fares and there is not much cost involved in it.

The one dimensional approach of generating leads through the clubs is rapidly developing into multi channel sources, via club and central sales/ marketing activities. The predominant focus areas are digital marketing on the internet to closed user groups, building the business to business (B2B) field sales force and the use of Membership Exchanges.

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

Customer’s bargaining power: The bargaining power of customers is medium. There a huge number of customers, not well organized to defend their interests. Additionally, the

AHC is a health club known for its excellent health facilities which benefit their members with a wide range of exercises as well as facilities such as their café and beauty salon. However, the owner, Andy has come to realise that if his business ever were to expand, it couldn’t satisfy everyone and cater to each individual’s needs. AHC has many opportunities for further development and becoming an even more established health club with a wider target market but its competitors (other health clubs) pose as a threat towards them in pricing and facilities.

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.

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy