The key issue presented in the case study regarding Elite Personal Training is whether or not it is a good idea to open a new training facility in downtown London. Another key issue is whether or not is a venture that will prove to be financially sustainable. These issues are explored more deeply in our case study. Based on the information provided and the proceeding discussions within our group, we will make recommendations on what course of action will be in the best interest of the partners.
In our situation analysis, we will be exploring several factors that will enable us to make a credible decision regarding the potential business success for Elite Personal Training. These factors include the company’s goals, environmental factors, a market assessment, a financial size up, a competition analysis, and the strengths and weaknesses of the potential plan. Further analysis of these factors will provide much needed insight to the viability of the proposed business venture. The goals of partners Martin Menard and Mirella Craciun are well defined in the presented case. In point form, the four main goals are: * Earn a profit of $10 000 in the first year to be reinvested into the business. * Register four to eight new clients every month (beginning in year 2). * Establish Elite Personal training as the premium training facility in London. * Provide high-quality customer service and long-lasting results. They have four well defined goals clearly outlined to go along with other goals that are implied in the text. These goals include providing the people of London with very personal, one-on-one training sessions where the client has private use of the facility (along with one other client). This can be considered sub-goals of the last two goals presented in their main four. Environmental factors are not as evident in the case as other factors are, however there are a few main points to take out. The city of London, Ontario is Canada’s 10th largest city with a population of 356 000. Since 1998, there have been 2000 more people moving into the downtown district due to a commitment by the city to revitalize its downtown core. Many of these new downtown residents are young professionals. The business sector in London has also grown substantially with 74 new stores opening and two major construction projects being completed. The average annual income of people living in London is $27 100. This gives an idea of the economic situation in the area. The market assessment gets a little more complicated. The partners are still unsure if they are comfortable with their proposed target market. The target market outlined by the partners consists of the following four groups: * Business professionals
* Sports professionals
* University of Western Ontario students.
These four groups are outside of preexisting clients from their former training facility. The business community in downtown London consists of 9700 employees with an average salary higher than the London average. One of the major institutions in London, London Life, already owns a fitness facility with a low cost to employees ($10 per month). Serious athletes involved with professional or semi-professional teams train quite often. Some train six times a week. However, there is a major question of the number of sports professionals in the area and if there is enough to fill Elite’s capacity. The London Knights hockey team and the London Silverbacks football teams are potential clients. Women offer a huge demographic. Many fitness facilities now offer “women only” training. The main criteria for women when working out are losing weight and enjoying the social aspects of training. However, many feel intimidated in co-ed establishments while training. The area instantly increases by 38 000 people in September, due to students arriving to attend...