Seminar 3: The Health Club Industry in 2004
In the article of John R. Wells, we note the growing number of "Health clubs" in U.S. With the year of the years clubs have been increasing across the country and how they have expanded internationally. Consumer Demand for Health Clubs
Due to the high number of deaths caused by the disease obesity in America, had to stop that. Therefore, they started to become trend in California go to the Health Clubs. Over the years has increased attendance at health clubs. Increasingly people are more days per year than before. Formerly, people who went to the gym were between 18 and 34 years, but in late 1990 began to increase assistance for the elderly. In ten years, fifty million people have signed a Health club. We also noticed that most Americans choose the Health clubs as the preferred site for exercise. Activities
The clubs offer a variety of activities with the fixed price they pay each month. Besides offering aerobics classes and exercise machines, there are other clubs who also have a swimming pool or offered a wide range of extra services for additional charges, such as personal training. The top growth activities offered by health clubs between 1998 and 2003 were Pilates training, elliptical motion trainers, and yoga. Equipment Suppliers
Most clubs get their equipment from small producers. Nautilus was the leading industry in 2004. The equipment would normally cost $ 5,000 or $ 7,000 per piece. Business Models
There were many business models for competing in the industry. First of all, owner-operated clubs: these were clubs operated by the owner. It was increasing the number of small regional chains. The largest clubs in the category were Bally Total Fitness (400 outlets) and 24 Hour Fitness (over300). Second, franchised clubs: that is the way of doing business that has had less impact in the clubs. But still, there has been a club that has increased its market share as it has expanded by 25 countries (Gold’s Gym)....
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