1119 Nelson Street, Vancouver, BC T6E 3H3
January 27, 2013
Mr. James Weaver, Chief Executive Officer
Gold's Gym International
125 E. John Carpenter FWY, Suite 1300
Irving, TX 75062, United States
Dear Mr. James Weaver:
BUSINESS INNOVATION PLAN FOR GOLD’S GYM
Gold’s Gym International has been credited as one of the best performing companies in the fitness industry. The company has been able to cope well with changing trends, while remaining competitive. However, due to an increase in the number of fitness clubs, it is currently faced with a lot of competition. In response to this competition, Gold’s Gym International has opened new facilities in various locations, and has also renovated existing gyms to provide its members with cutting-edge equipment and a better environment. I believe that this is a critical time for you and for the company in order to continue to enjoy long-lasting success well into the future. On behalf of Sage Consultants, I have done some research and found various ways that the company can improve its performance through innovation and adapt to the changing market. Thank you in advance for taking the time to read this report. Sincerely,
Gold’s Gym International (Gold’s) is an international fitness company that was established by Joe Gold in 1965, and has evolved to become one of the largest in its industry. The company focuses on offering body building and fitness services to both men and women, and currently has a worldwide subscription of over four million people. The company has established centers in different countries across the globe, and has seen its subscription rate increase daily as people develop a greater interest in maintaining their health and fitness. Each of its centers is equipped with exercise equipment and staff who train members on the safe and proper way to achieve their body fitness goals. Gold’s also has franchise contracts with other companies and leases its equipment to increase its income (Gold's Gym International, Inc., 2013).
Figure 1: Health Club Growth from 1987 to 2005
The fitness industry has enjoyed a dramatic increase in the number of health club members for about the past 20 years (Figure 1). However, beginning a few years ago, the industry has faced high competition and numerous fundamental changes as new trends are continually developed. With the gradual changes in technology, clients adopt different ways of performing exercise. The company has, however, been keen enough to keep up with the changing trends to ensure that it is not driven out of the industry. Gold’s has achieved this by adopting the kinds of technology that help meet the clients’ expectations. To remain competitive, the company has had to come up with mechanisms to remain current with market trends and continue to meet customer demands. The ability to adapt to changes in the marketplace to serve consumer needs is one of the main reasons contributing to the success of the company (Scudder, 2005). Industry Analysis
Figure 2: Industry at a Glance
Gold’s operates in an industry where the clients’ preferences vary as to the kind of services they want from the company. The industry is also characterized by constantly evolving trends with the increase in technological development. The art of body building has developed from using equipment that is manually operated to automatic machines where clients select the level of exercise that best suits them. Gold’s has had to come up with mechanisms of coping with the changing trends by developing equipment that is more efficient for its members by adopting new technologies (Product Technology & Innovation, 2005). Initially, the art of body building was associated with men, but currently women are reported to subscribe to the services in almost equal numbers to men. Women, however, require a...
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Gold 's gym international, Inc
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