Fitlife is one of the largest chains of health clubs and it is a private company. The company consists of 70 health clubs with active members counting up to 182,000. The company belongs to the fitness and sports segment and is the one of the leading providers of sports venues all over Sydney and other states. The company provides health clubs, sports clubs, swimming pools, squash courts and various other venues. The facilities offered by the health clubs include swimming pools both indoor and outdoor, gymnasiums, recreation halls that include basketball, table tennis, squash, netball and badminton, gymnastics halls that includes kendo, martial arts and boxing and various other classes.
The mission of the company is to engage with the surrounding community and to provide groundbreaking health clubs having advanced lifestyle and fitness programs. Fitlife wants to inspire people from different backgrounds, abilities and ages to lead healthy and active lives. The vision statement of the company shows that Fitlife wants to be regarded as one of the premium contributors of quality gymnastics, wellness and fitness. They want to provide inventive services and programs, which will completely transform the lives of the people associated with them. The company is very passionate about endorsing good and quality lifestyle and the values of the company are mentioned below.
Australia is a country, which has a very high rate of obesity, and the company wants to encourage people in adapting to healthy life style. Fitlife has established its market in the Australia and there is huge opportunity for expansion in the International level. There are other countries that are having the similar problems in the pacific region so the company should reach to such countries (Day 2014). These markets are untapped markets and the company can capitalize on this factor. The company can improve the quality of the training centers by accommodating internal training programs and hiring personals that are highly recognized all over the country. The company will definitely provide assurance to their target customers because of the reputation of this people (Mason, Kjellberg and Hagberg 2015). There are lots of people who want to join these programs but availability of the programs is difficult for them so distance coaching is a way of reaching this segment of the target customers. This a new market segment for the company and it has the potential to be a successful program for the company. The coaching can be done online and the recent trends show that the popularity of such programs that provide support through remote communication is rising in a rapid rate (Dholakia and Dholakia 2014). The services and the products of the company is mostly limited to Sydney and it can be expanded to other parts of the country. Physiotherapy is one such program, which can be used to attract the customers who are not members of the club.
The company has very few competitors in the current and the new target segment so the company can gain competitive advantage if they provide quality services. The programs offered by the company shows that the company has the maximum market share in those segments whether there is growth in that particular market or not. The new programs introduced by the company has high rate of growth in the market so the company will have to invest more in this segment so that this product can occupy the majority of the market share (Suh 2014). The new programs, which are introduced by the company, should be used to hold on to the existing customers. The investment in to these programs will have to be more than the programs, which have already captured the market. The new programs have the potential to capture the majority of the market if the proper resources and plans are executed. This segment has a lot of potential and can be exploited to gain market share. The initiatives taken by the government to increase awareness about health issues such as obesity and smoking will promote the things the company wants to convey.
Analysis of the Opportunities
The company has a variety of products and these products are categorized according to their performance. Kendo is one of the gymnastics program of the company which is the least popular in the market and has the lowest market share. The investment on this sector is futile as the market growth for this product is low and the market share is also very low. The programs like youth swimming, weightlifting and recreational activities have high market share for the company but the market has become saturated and there is no growth in these segments. Therefore, the company should not invest much on these products as it already has reached the its maturity phase and there will be no further growth in this segment (Bull et al. 2016.). There are various products the company is going to launch or has launched and has a premium target segment. The products that are being launched has a potential of becoming the market leader. The market growths of these products are very high but it is yet to capture the market. The company will have to invest more in to this segment so that these products can capture the maximum share in the market (Wayubood et al. 2017). The current trends show that these products have high popularity in the market, which is increasing at a rapid rate. There are products, which have acquired the maximum market share, and is the best performing products for the company. The market share and the market growth for these products of the company is both high and can be defined as the market leaders of this segment. The company will have to make more investment in this sector as it is generating the maximum revenue out of all the various products (Tao and Shi 2016).
The Australian has been promoting the health and safety issues and the company should form a partnership so that they can utilize the situation to promote their upcoming and existing products. There has been a steady rise in this industry and is generating more and more revenue in each passing year so the company has the opportunity to improve its market position (Fozer et al. 2017). The growing awareness about obesity and other health issues will prove to be a competitive advantage. The research show that more and more people are using technological devices for health purposes so these products could act as a substitute for some of the products.
The recent trends show that people are going on fitness holidays and getting involved in training programs, which are customized for the niche market. The company should introduce such programs as their product is already described as premium (Attri et al. 2017). However, the company should include some programs, which are cost effective so that a larger segment can be reached.
The company will have to focus on mainly four new strategies, which is mainly dealing with the new products that will be launched. The operations of the company will have to be changed as it is making its expansion in the overseas market. The company will have to focus on this product more than the other products in the market as it is in its nascent stage. Fitlife will have set up a base of operation in the foreign countries and will have to be conversant about the laws and the surrounding of that particular country (Gatignon, Gotteland and Haon 2016). The company will find a business partner who can help in setting up the business of the company and will supply them with the requirements for opening up a health club. FitLife will have to spend a considerable amount of money for promotion so that it can reach a wider network of customers. The cost of setting up the business will be 500 million in American Samoa and the breakeven point can be reached in 1 year. The company is expected to recover all its investment in only just one year and high expectation should be made from this investment (Boadway 2016).
Changes in the Current Business Operations
Distance coaching is one of the latest trends in the market and has a high growth rate and will reach a lot of consumers. The setting of the technology will the main work in the field of operation as the company does not have internal technical facilities. The company will have to hire other companies for setting up of the remote networking technologies. The market size for the investment is huge and the company has the opportunity to gain advantage over its competitors. The cost of investment for this product will be around 750 million and the breakeven point can be reached within 8 months and the company will make immense profit if the process in followed (Reniers and Van Erp 2016). The physio gym is a product which the company will set up to retain the existing the customers and as well as acquiring new customer base. The market growth of this product is very high and the company will need new equipments and experts for this session. The market size for this product is around $30 billion and the cost of operations of the company will be around 1 billion. The expected return from this product is very high and the company is expected to earn back the invested amount in less than half a year. The next operational change will need a lot of investment as it requires a lot of space and the company will have to add space to the premises to accommodate the health bar (Nas 2016). The health bars are emerging and have a high market opportunity and many people are visiting these bars in an effort to be healthier. The company will have to invest a large sum of amount for incorporation of these bars within their health clubs and the investment amount is around $2 billion. The company will gain back the investment amounts in half a year and has a lot of prospect in the future (Grant 2016).
However, there is an emerging risk in the market which may cause problems for the company. The risk is about substitutes of the products, technological advancement has caused the development of fitness gadget, which will pose a threat to Fitlife. This could reduce the customer base by 10% and probability of this happening is .70. The amount that will be lost is around $ 200 million (Modarres, Kaminskiy and Krivtsov 2016). This risk cannot be avoided because the company does not have the internal technical expertise to develop their own gadget systems. Thus, company cannot mitigate this risk so they will be a mere spectator in this situation. The cumulative ROI is projected to be more than 100%, which in turn shows the immense potential the portfolio has (Masters et al. 2017). The company will definitely take as the market leader in this industry if the new opportunities are properly utilized.
There are certain conclusions that can be drawn from the report, which shows the future prospects and risks of the company. The company has a lot of opportunities in the current market as the fitness market in Australia is growing a rapid rate. The company has a lot of competitors in the market and the company will have to be more innovative and smart in order to gain competitive advantage. The ROI of the new products show that the company can make considerable amount profit in the next five years if everything goes according to the plan of action. Fitlife has a strong customer base so the development of new products will help in retention of the existing customers and acquiring g of the new customers. The Australian government is also promoting health issues so that they can reduce the average obesity of the country and this acting in favor of all the fitness organizations in the country. The government is indirectly promoting all the fitness institutions and so there will a steep competition among the top players in the industry. The adaptation of this products into the company portfolio will take some time and five years down the line company will generate huge sums of profit.
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