Strategic Plan, Part II: SWOTT Analysis
BUS/475 – Integrated Business Topics
February 10th, 2014
Destination Fitness is a health club designed for the transportation industry specifically over the road drivers. Destination Fitness provides its clientele with a unique variety of fitness options, tools, and techniques that will allow each customer to build a fitness plan that meets their needs. The services that Destination Fitness will provide are a wide variety of fitness equipment, personnel trainers on staff, 24 hour access, health food restaurant that provide a wide variety of food, dieticians that will assist customers in creating healthy meal plans, environment free of gym intimidation, and exclusive membership to those with CDL licenses. Destination Fitness ‘s ultimate vision is to change the culture of an industry who’s employee’s are 77 percent overweight and of that 73 percent 55 percent are obese(Brown, 2012). In order to achieve the goals Destination Fitness has set for itself the organization must analyze the internal and external structure of the organization. Destination Fitness decided to perform a SWOTT analysis to examine the strengths, weakness, opportunities, threats, and trends it may face starting out. The factors the organizations looked at were Economic, Legal/Regulatory, Technological, Innovation, Strategy, Structure, Resources, and Culture. SWOTT Analysis
In order to conduct an SWOTT, Destination Fitness needs to answer questions adequately about the company’s strengths; what are the advantages, resources, strengths in the market, and what does the company do better than the competition. The company needs to assess what factors will contribute to a loss in sales and revenue. Once again, this needs to be considered from an internal and external perspective paying close attention to what the customer’s feelings are.
Once Destination Fitness has established the strengths and weaknesses, the company then needs to figure out where the opportunities for the future of the company are. When assessing the opportunities the company needs to ask the following questions; what are the trend purchasing patterns of the customers, what opportunities does the company see facing them in the future, and
what are the changes in technology and the markets. Additional areas for Destination Fitness to look for opportunities are to assess the strengths and see which ones that can lead to a new opportunity. Another way for the company to find opportunities is to look at the weaknesses and assess which opportunities can be created from eliminating weaknesses.
The final step in conducting and carrying out a SWOTT Analysis is to look at the threats facing the company. Threats can be found by finding what obstacles the company is facing now and will face in the future, competition product and services, changes in technology that may threaten the position of the company in the present market, financial standing or problems and if any of the weaknesses that have already been defined have an effect on the company. Sometimes companies can find that a weakness that they overlooked can cripple their company but it could have been avoided if a proper SWOTT Analysis would have been conducted. Economic
Destination Fitness economic environment will be established from all income levels including products, fitness training and techniques taught to the customers and all other services offered. Destination fitness will serve as a place of respite for weary travelers as well as a place they can work off their daily stress. Each Destination Fitness location will have the latest in fitness equipment so there will be something for every individual regardless of fitness levels. As the clientele list grows, the organization will make the effort to adapt its products and services in order to continually meet the demands of its customers. This will give Destination Fitness the ability to “grow” with its customers and adapt their products and services to better fit the customer’s needs and also give the customer a sense of ownership in regards to their physical well being.
Destination Fitness, like most new businesses, will face a variety of economic issues. Whether it’s from internal weaknesses of the organization or external threats to the company, the organization must be prepared to overcome these obstacles. One of the biggest external threats to the economic success of Destination Fitness it the economy itself. Although the economy is steadily recovering from the recession, disposable income still comes at a premium for many people. In order to convince customers to become members they must, first and foremost, make it financially attractive to them. Keeping membership costs low will entice new customers through the door. After that it is up to the staff to make customers realize that their biggest investment should be to invest in their own health and well being. Another threat that Destination Fitness faces is the time constraints many drivers have. In order to meet there deadlines drivers have little time other than to sleep. In order to combat this, programs that are offered must utilize time efficiently and be able to bring results within strict time limits. This will also allow the trainers to assist more people and really give the customers the sense that Destination Fitness truly cares about their health, happiness, and livelihood. Legal/Regulatory It will be essential for Destination Fitness to determine the legal structure of the organization. The business structure the company decides to use will directly affect the purchasing strategy and the price of the services and products they will sell. Destination Fitness will be a Sole Proprietorship where the assets are being held by the owner and the only stakeholder is the bank or lender. The stores biggest strength is that the store will not be required to obtain special licenses.
Destination Fitness will not sell, alcohol, lottery tickets, gasoline or firearms, therefore, a special license will not be necessary. However, Destination Fitness will be requires to obtain a health inspection certificate, a Food Handler's License or Permit, a Sign Permit, a Music License, Fire Certificates and a state business license that will allow the store to conduct workshops. A sales tax license will be necessary in order for the store to sell merchandise and Destination Fitness will have to register and obtain an employer identification number from the state Department of Revenue or Treasury Department. Another strength that Destination Fitness has is the ability to purchase insurance for the store, its employees, and customers. By insuring all three the company is making sure that they are protecting the initial investment and if a customer gets hurt while in the building or while using the products. By making sure that the company has adequate insurance the company is safe guarding itself against being sued by customers and losing the initial investment.
Destination Fitness will have the opportunity to lease the building with an option to buy in later years if the store is financially stable. With this type of opportunity come certain weaknesses and threats. One weakness for the company will be that it may not be able to be covered under certain insurances due to leasing the building. By not having the building 100% insured the company then runs the risk of not protecting the initial investment. Another threat that the company will have to face is not being able to meet all the legal and regulatory requirements. Technology
Technology will greatly impact how Destination Fitness will run its operation. Technology will have a key impact on how Destination Fitness will market its brand as well. Destination Fitness claims to provide its customers with state of the art equipment and exercise programs that will help customers meet there individual goals. This will provide Destination Fitness a distinct advantage over there competition and a strength of the organization. The down side to this, and am initial weakness the organization will face in how much capital it will require to purchase the amount needed. Renting the equipment as opposed to buying the equipment outright at first may be a solution to this problem. Potential threats to the company are there as well. Competitors may try to mimic the business plan and offer similar services for a lower cost. Innovation
Innovation for Planet Fitness will come through providing each customer a unique fitness and diet program that is made just for them. This will be a huge strength for the organization because the customers will feel as if the staff of Destination Fitness truly cares about them and wants them to meet there goals. As customers wants and needs grow and change, it will take innovative ideas and tools to meet the demand of the customer, as well as, continue to offer the services at an affordable price. One weakness that Destination Fitness will face is the challenge of properly marketing the products and services available to their customers. The company will also be threaten by the competition if the company is not unique and offer quality service that will meet and exceed all of the customer’s expectations. Strategy
Destination Fitness must have a strategy in place to provide the company an opportunity to grow and develop as an organization. Much of the strategic plan will involve the location of their fitness centers. Initially Destination Fitness will operate in locations with heavy traffic volume and places where drivers tend to stop for the night. Once the company establishes a solid customer base it can expand outward to more remote locations. This will provide more opportunity to its customers to use its facilities and help bring in new customers. Strategy can also help overcome a glaring weakness the company has, lack of customers. Once locations have been set, the next thing will be to focus on bringing in customers. New customer promotions, family deals for the drivers, free training sessions for new members, samples of the foods they offer, will all be employed to attract the initial customer base. Destination Fitness can also use strategic marketing to gain customers. Using statistics and the currents fitness trends across the country will aid in bring customers through the door. Structure
Destination Fitness’s biggest structural strength is the ability to use an existing building rather than build a new one. Destination Fitness will offer all the necessary equipment, supplements and food options to allow customers to build a fitness program that fits their needs. While the company’s biggest strength is using an existing building, it can big one of its biggest weaknesses as well. The reason why is that the business may not be able to fully utilize the space or the building may not be big enough in the future. Also with using a building that is not your own, a company cannot make any changes that the landlord does not allow.
An opportunity that the company has will be to purchase or build a new building that will be able to suit all of the companies needs. One benefit that owning a building is the ability to expand the structure to if needed. Natural disasters are a constant threat to any structure in the country. Because the company will more than likely have to rent the buildings at start –up, there could be issue’s getting repairs made if a natural disaster does strike. Resources Destination Fitness will have the strength to fully use all of the company’s resources. Some of those resources are the equipment, employee’s working knowledge of fitness and exercise, and an undisclosed abundance of funding available from the bank. While one of the company’s greatest strengths is its employees it can also be one of its biggest weaknesses. Making sure that the staff is properly trained in providing proper fitness techniques as well as motivating supporting and assisting its customers in reaching their goals is vitally important. When dealing with the company’s resources the biggest opportunity is to find better suppliers that will help in providing healthy food options for its customers.
Destination Fitness’s vision for the future is to shape the men and woman who move the world. This new business has many hurdles to overcome. There are many places where the strategic plan of Destination Fitness can potentially fail. By performing a SWOTT analysis on some of the external and internal factors the company faces they have taken a step in the right direction. Destination Fitness continues to lay the ground work for a success business by identifying what obstacles must be overcome and the areas of the business that need to be focused on.
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