Case Study Porter’s Five Forces Model

Business has been revolutionized by technology and the club industry has followed.

” (Rude, 2009) When using the Porter’s Five Forces Model, one can conclude from the analysis that the threat of substitute products or services Is high. In regards to other fitness faceless, they may offer more classes at more efficient times for customers who work throughout the day and expect to get a workout in before heading home. The technology implemented will have a positive effect on the fitness facility and yes it will affect our strategy for the likelihood of customers returning.

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The rivalry among existing competitors is neutral but has a high effect on customers becoming members to our facility. The fitness facilities that have more of an outstanding reputation because of advertisements and elaborate websites such as, Gold’s Gym or LA Fitness lead competition for customers joining their gym. Yes, this has an effect on our strategy, we will upgrade our website and provide more information for the customers to view.

Buyer power is high and yes, will have a negative effect on our strategy. There are so many fitness facilities that want your business, but have offers hat you would pay too much for.

We offer instructional classes by professional and well trained teachers for the right price. You will be able to use our new and Improved span room Tanat NAS near rate millions Ana a xx/ screen to snow you ten hills and roadways in which you are climbing. The threat of new entrants is also high with regards to new facilities being built daily in different parts of the city to lure in customers.

The negative effect this will have on our facility is, we will have to compete with all other gyms and memberships. Our newly remodeled fitness facility with the attest technology will be a competitor for the new and upcoming facilities.

The supplier power is neutral and has a medium impact on the facility. Yes, this will still effect our strategy in finding the most qualified instructors who are comfortable with teaching in a new generation of technology based customers. The instructors will have training on all technology being implemented into each classroom and the effects it should have on our customers.

We are hoping the customers will provide feedback on how the technology has either complemented their workouts or if they refer to opt out of using the technology.

We have used the Focused Strategy since our concern is the customers and how they are using our improved technological devices in class sessions. There are many different fitness facilities trying to get business from competition by lowering the price and offering coupons for a lower standard environment. What we mean by that is, we will offer the same lower pricing but have friendlier employees, new technology based workout rooms, improved equipment, and many more options for the same cost. The organization for the lasses has been based on the amount of people coming in at different times of the day.

We will offer more routine classes in the peak morning hours as well as the evening hours when most customers are getting off work.

We are able to pay for all the new technology upgrades by the membership prices and offering more instructional classes that customers pay a small fee to Join. This improvement to the gym will work in our favor to satisfy customers and make the workout environment a comfortable place for all existing customers and hopefully bring in new ones. Technology and fitness facilities have been up in coming in the 21st Century.