Strategic Analysis The Fitness Industry - 1719 Words

FitTime Strategic Analysis Group 8 Ashley Montaquila, Meredith Robertson, Brendan Schachle, Abraham Gonzalez September 30, 2014 I. FitTime, like most other gyms and workout centers, operates in the fitness industry. The Fitness industry continues to steadily grow as entrepreneurs and small businesses see worthwhile market opportunity. With the ongoing obesity epidemic in the United States, fitness and exercise opportunities are becoming more and more popular for Americans. However, as a result of continued growth within the industry, fitness centers and gyms have become highly competitive businesses. In this paper, we will analyze strategies and processes related to the fitness industry and provide insight on how FitTime owner†¦show more content†¦While there is always a possibility of new businesses starting up and creating competition, the fitness industry is fairly difficult to break into. It is tough to join the industry due to its high entry barriers, such as the need for expensive, quality equipment and hiring experienced professional trainers (Fitness Express). These barriers would prove to be very costly upfront, which many prospective gym owners may not be able to afford at first. Because of these expensive barriers, the threat of competition from new entrants is low. Furthermore, the bargaining power of suppliers is also relatively low. The primary use of suppliers is to purchase or lease equipment to the fitness industry. Fitness studios try to get the latest and greatest equipment to satisfy their customers and stay ahead of others in the industry. There are many different suppliers of fitness equipment and the demand is high in the fitness industry for the most up-to-date equipment, so therefore this may drive up the cost and give the suppliers ultimate bargaining power. Since the demand is high, the price of the equipment must be low enough for the companies to purchase. This creates equilibrium between the suppliers and the buyers. In addition, the bargaining power of buyers is high in the fitness industry. The ease of customers going from one gym to the nex t makes the membership rates fluctuate easily. Buyers determine the price of the market; they easilyShow MoreRelatedSwot Analysis: the Fitness Center Industry Essay1569 Words   |  7 PagesSWOT Analysis: Fitness Centers Industry Courtney Albertson PHL/320 30 March 2015 Matthew Hazlett SWOT Analysis: Fitness Center Industry It today’s society, â€Å"going to the gym† has become a normal phrase heard around the world; however, the fitness center industry is not exactly in the spot light of today’s media and headline news. So, that sparks the interest of what makes the fitness center industry succeed, what are their strengths. 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