IFSM 300 Case Study, 1
Case Study, Stage 1
Kristina Hackett
IFSM 300
September 1, 2013
Many customers are uncomfortable with exercising in front of other people or in large groups. There are many improvements that are being done to compliment the customers, such as having more availability in the classes and implementing different types of monitors to show your progress. There are many people today trying to get back into shape and just have no motivation. We are hoping to make the fitness facility a place customers look forward to going every day, by using more technology in the equipment and improving our instructional classes.
“Business has been revolutionized by technology and the club industry has followed.” (Rudd, 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 facilities, 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. 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 that 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
Kristina Hackett
IFSM 300
September 1, 2013
Many customers are uncomfortable with exercising in front of other people or in large groups. There are many improvements that are being done to compliment the customers, such as having more availability in the classes and implementing different types of monitors to show your progress. There are many people today trying to get back into shape and just have no motivation. We are hoping to make the fitness facility a place customers look forward to going every day, by using more technology in the equipment and improving our instructional classes.
“Business has been revolutionized by technology and the club industry has followed.” (Rudd, 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 facilities, 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. 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 that 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
References: Baltzan, P. (2014). Business Driven Information Systems. New York: The McGraw-Hill Companies. Rudd, D. P. (2009). Innovative Technological Advances in Modern Club Operations. Journal of Technological Research, 1-11.