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Gymshark brand

Create a situation analysis for the Gymshark brand. The situation analysis should contain the following key areas:

1) External analysis

2) Competitor analysis

3) Customer analysis

4) Internal analysis

5) SWOT analysis


Political factors play a significant role in operating the day to day operations of the business. Gym shark conducts the activities that are related to the fitness products. To achieve success in the industry of fitness products it is important to take into consideration political factors that enhance the smooth working pattern of the company. For marketing of the products, the social sites are taken into consideration. The company also has a trademark that requires legal documents to operate the activities of the organization. The company offers product in various countries and also offers variety of fitness products to both men and women. The business also offers attractive discounts to the consumers, so that the consumer can be attracted in an effective manner. To consider the corporate strategy, it is essential that to consider the political differences (Sutherland, 2014).  For example: Brexit has given direct impact on the sales of the company. The company chooses to maintain proper competitive edge by reducing the prices. This is the major political change that has given direct impact on the overall profitability of Gym shark.

Economic Factors

It is considered as one of the essential factors and the economic factor gives direct impact on the buying behavior of the customers for Gym shark products. The economic factor like per capita income, inflation and unemployment give direct impact on the profitability of the organization. This is one of the factors that directly impact the potential customers and also reduces the purchasing power as well as firm capital cost. The impact is also due to the fluctuation in the currency rate. The operations of the business are directly affected by this factor. Due to the economic up's and down the demand for the product is also affected. For example: The demand for the fitness product in U.K has enhanced. It clearly states that at the time of recession the demand for the products enhances and also the labor cost is considered by the company (Qiao, Zhang,  Wei and Chen, 2017).

Social Factors

The needs and wants of the consumer keep on changing with the time. Gym shark mainly gives focus on the designing that is related to fashion. The product that is offered by the company is best to use for every age, lifestyle and also religion. The company mainly gives focus on the fitness products. The social factors also have an effect on the innovation and buying pattern of the individual. The factors that are implemented by the organization should be properly implemented so that the company can easily attract customers towards the company (Venter, Wright and Dibb, 2015). The main aim of the company is to offer the products all over the world by enhancing the satisfaction level of the consumers. Attitude and shared beliefs of an individual plays an essential role to increase the profitability and productivity of the organization. In this, the main emphasis is on the requirement of the consumers. If the product enhances the satisfaction of the consumers, then the profitability can be easily attained (Rothaermel, 2015).

Technological factors

Technology is also one of the significant factors that give direct impact on the productivity level. If the company adopts an updated technology, then the company can easily attain success in the market. Gym shark has its own unique technologies that distinguish it from other companies that are prevailing in the market. It will not only enhance the competition level but also enhance the production along with quality. It saves time, effort and energy. The company not only considers the technological factors in production but also produces products like gym bags. Also, the online store for giving additional experience to the consumers is related to purchases. The strategy of the organization is to enhance the competitiveness of the brand by giving emphasis on creating the segments of the products (Sa Vinhas and Heide, 2014).

Environmental Factors

According to Gym shark all the factories or the manufacturing units do not produce any products that are restricted. This assists to minimize volatile and various compounds emissions. The main objective of the company is to enhance the sustainable products that will enhance the quality and also gives maximum functionality (Haemers, 2016).

Legal Factors

The company should be aware of all the legal proceedings so that the operations or the activities can be completed in an effective manner. The legal act consists trade description act, a supply of products, sale, and complaints. Gym shark should be aware of the export, import, sales, and name of the products so that no legal penalties can be imposed on the company. The company should give focus on the trademark of the company that should not be copied. If the trademark is copied of any other company, then the legal action can be taken immediately by the other company. So, the company should be aware of all the legal procedures for conducting the activities (Peck, Christopher, Clark and Payne, 2013).

Competitors Analysis

 Due to the large-scale operations, the firm is able to control the costs, so that the performance benefit can be attained over the competition level in the industry. The company has a simple website that gives the contribution to the marketing budgets. There are various different products and also the brand identity is one of the competitive advantages. Selling Fitness products is highly competitive but there are barriers to enter into e-commerce industry are low. To sell the product online incurs the low cost if the comparison is made with establishing the bricks for the organization (E. Dobbs, 2014).

Bargaining Power of the Buyers – High

There are many buyers in comparison with the firms in this industry. Therefore the company like Gym shark continuously gives direct focus on marketing the products and also it differentiate the brands with the competitors. By this, the direct impact is given to the sales and profitability of the organization. The company also enhanced the operations by considering effective tools that helped to cover large market audience. Brand identity also plays a great role in the buying behavior and also the strong identity of the company will give customers trust and loyalty. There are various online buyers who are price sensitive and also the switching cost is low for the buyer. It gives positive impact and helps the organization to attain success in the market (Hollensen, 2015).

Bargaining power of the Suppliers – Low

There are various suppliers in this sector. If this sector is taken into consideration, then it is analyzed that there is little differentiation among the suppliers. It also makes the bargaining power of the supplier non- existent. Gym shark has a full control and power of the suppliers. The suppliers are dependent on the company as it is essential for them to survive in the market. The company has also standardized the procedure of input that consists of the material used, the labor force, supplies, services, and logistics. The firm can easily switch between the suppliers in a quick way, as there is a globalized network of the cheap labor. Also, the inputs are easily substituted and also there are many suppliers available (Suh, and Roh, 2015).

Threats of substitutes – Low

The propensity of the buyer to substitute is low. The substitute available in the fitness sector is low because there are fewer alternatives to switch from one company to another. Consumers also do not substitute due to the performance specification of the product. For example: A gym person will wear a gym outfit. So there are no real substitutes available for gym clothing. There are various substitutes available in the market for the consumers, but if they like the product offered by the company then it can be very difficult to replace it (McCann, 2016).

Rivalry against Existing competitors – High

The rivalry among the existing competitors in the fitness industry is high. There are many firms like Nike that have frown over the last two decades. The reach of the company has enhanced in many continents and also the use of internet has played a great role to attain success in the market. Online selling has given large options and also enhanced the sales of the product.  It is evaluated that every firm operates the activities by considering websites that contain visual stores. It also provides support to the consumers, to purchase the product easily by sitting anywhere in the world. Every company should create a strategic plan that helps to attain the success in the market and also to compete with the competitors in the market (McLellan and Havenith, 2016).

Customer Analysis 

Customer analysis is one of the important factors of the organization. It considers the exact position of the product in the market. By giving focus on this, the company can easily conduct the operations of the company and also attain the profitability, if the demand for the product is effective enough. Customer analysis can be conducted by considering the factors like:

Target market

It is evaluated that a large number of audience is untapped and to grab it, the company has to enhance the strategies. So, the customer can attain the knowledge about the products that are offered by the company. The company can easily attract customers towards the product by sponsoring the local sports events in the untapped market. It will assist to enhance a brand association with the target customers and also to attract more customers towards the company (Dinnie, 2015).Gym shark can also focus on untapped market consumers by offering low price products. It can enhance the market segment to enhance the competitive power if compared with the other competitors. The company should give focus more on the teenagers. The products that are offered by the company can be purchased by the consumers.

The main target audience for the company is around 20-45 year of age. The company offers products that are used in the fitness sector. So this will attract the audience at the affordable prices offered by the company (Dabholkar, 2015).

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