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Business Strategic Planning For Public Relations

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The following assignment is about the industry and market analysis of the Sharp Shape Fitness club. The relevant background information including an outline has to be presented with the current industry trends, the state of the global market and the state of the Australian market as well. In the given requirements, it is said that the market needs to concentrate on its suppliers, buyers, potential entrants and the threat of the new entrants in the market, the investors who provide the money to run the business. The rivalry between the existing companies and the new entrants is always a fierce one because the competition to attract the customers is getting really tough every day. The progress and the development of a fitness training institution like the Sharp Shape Fitness Club has much to do with the state of the global market (Mooji, 2013). The state of the global market has a very large impact on all the marketing in the local and national spheres. The global objectives of improving the condition related to the needs of the customers. As the awareness of people to get healthier and fitter has been increasing, the need for opening new fitness centers has been on the rise as well. The state of the Australian markets has to be assessed as well because it has to meet the needs of the local Australian people. The need to specialize in one sector is very important because the outcome of the project is all that makes all the difference. There is also a sharp rise in the need for fitness gyms in the country. The fitness gyms not only provide best health solutions to their millions of customers, but also they provide a good range of employment to fitness instructors in Australia.

Industry Analysis/PESTEL Analysis

Strategic development is one of the most important tools that help a new company to grow and make a market of its own. Some conditions have to be kept in the mind so that the company or the organization will be able to reach its objectives.

These are also called the macro-environmental environments. The marketers also monitor it so that the problems can be identified and they can be solved accordingly. These are Political, Economic, Social, Technological, Environmental and Legal (Jurevicius, 2013).

In the above figure presented, it can be clearly seen that all these six factors have a vital role in determining the strategy according to which the organizations should follow their path of rise and sustenance.

Australia is a politically stable country so the political environments would need to be supportive so that no objections can be raised from the political parties or any other authority during the structuring of the gym. Though the economic factors do not directly affect the business but it affects the business regarding money, goods and services. The environmental factors are very important because the environment of the area where gym is to be set up must be at a place where the customers can turn up easily. The legal factors include the areas where the Management of fitness gym must abide by the legal procedures and not break laws in any circumstances. The industry environment is very crucial for setting up the organization because the business credentials and the customers’ attention will be deeply involved with this. Bad industry environments will decrease the number of the customers.

In this part, the bullet points have to be highlighted. The main factors that would influence the strategic planning are the environmental factors and the kind of environment they will provide to their customers. They must employ instructors with polite behavior, take proper steps to secure the economical conditions and ensure no legal barriers are violated. The strategic planning has to be fixed after targeting the segmented customers all over (Hitt, Ireland & Hoskisson, 2012).


Industry Analysis/ Porter’s Five Forces

Porter’s five forces is a strategic tool that is very helpful in determining the level of competition that a company has to face in every sphere when it is growing in the industry (Dobbs, 2014). The growth of a company depends upon this strategic tool and also helps the Management of the company to plan about the certain strategies. These five forces include the bargaining power of the buyers, suppliers, new entrants in the business, product substitute and most importantly the rivalry of the industries. As contrary the macro environmental factors in the PESTEL analysis, these factors are related to the micro environment (Pulver, 2012). The assessment of situation in the industry competition has to be done very frequently. A pure competition has to be faced by all.

This factor is very important because it enforces upon the importance of competition in the industry.

  • A healthy rivalry is always helpful because there would be a certain amount of challenges foe every organization.
  • The threat of new entrants in the industry is always there as the other organizations target to capture the customer market (Marshall, 2013).
  • The bargaining power of the customers has to be assessed by the suppliers (Solomon, 2014).
  • They would rate their own range of production cost so that they can maintain their profits.
  • The thought of product substitute is a vital aspect because the concerned industries have to focus on maintaining the good quality of their products (Goetsch & Davis, 2014).

Thus, the Sharp Shape Fitness Club must also focus on their goods and its quality. They must also look to fix the monthly rates of the subscription to attract the customers than other rival fitness gyms.

In this part of the narrative, the main parts of the Porter’s five forces have to be analyzed in course of the fitness club discussed here. The three prime factors of this are the industry rivalry that these companies may indulge in. In Australia, people are becoming more and more conscious about their health and consequently, more and more fitness clubs are opening. Sharp Shape Fitness Club has to keep its place in this race to keep themselves alive in this competition, (Thompson, 2014).The buying powers of the customers has to be assessed by the club Management and fix their monthly subscription fees. The threat of the new entrants here implies to the new fitness clubs that are opening in the country. Sharp Shape has to maintain their product quality to compete with others.


Industry Analysis/ Key Success Factors

In this part of the discussion a table has to be drawn the external forces that influence the industry and the key success factors that will lead to its success in future.          

External forces

Key success factors

The first external force that will affect the fitness industry is the kind of environment that the gym is set up.

The gym has to be set up in a place that can be availed by all the people in the location, probably in an open space.

The proper marketing has to be done before inauguration of the club.

Leaflets should be distributed among the people of the locality and advertisements should be given in the media to inform the people.

The customers will need a private space in the gym and a proper gym instructor.

The space of the gym should be wide to give every member has a proper space.

The gym must have a good dietician who can be able to provide the customers a proper diet chart (Freeland-Graves & Nitzke, 2013). The installation of fitness materials should be done according to the needs of the customers.

The customers should be benefitted by the diet charts provided. It should be made sure all the materials are properly installed.


KSF narrative

In this section, the topic of the KSF or the Key Success Factors should be clarified and the need for adapting the key success factors should be discussed. Key success factors or the KSF are the important tools that are used in the business planning (Scholes et al., 2014). These factors are not determined by the industries themselves. These factors are developed and identified for the marketing criteria. These are critical planning that influences the relationship between the customer and the company. In the first place, the company should focus on developing the business and to do that they should develop a proper business strategy (Verbeke, 2013). Every company has a goal or objective that the company wants to attain. In order to do so, they should identify the key factors that will lead them to their success or attaining their goals. These are the basic steps that the company should give its prime concentration on. In the case of the fitness industry, the concerned company should focus on the basic needs of the customers and make the proper fulfillments.

In this part of the assignment, the topic of the discussion is to evaluate the value of the rational models discussed in the above. The models that have been discussed are the PESTEL analysis, Porter’s five forces and the Key Success Factors or KSF. These factors are very important in terms of business planning or strategic planning.

The first model that has been discussed here is the PESTEL analysis (Yüksel, 2012) It is a very important tool for fixing the business planning. Marketing strategy is so much important in the marketing aspects that it should be adopted by every emerging company in the business industry (Coase, 2012). An industry needs to cope up with all the six essential aspects that are depicted in the framework. The political aspect is important because the companies need to set up the company in the society and it should respect all the political opinions. The economic aspects are indeed important because without proper financial investment, no company can proceed further (Goodman et al., 2013). All of them plan a proper strategy regarding the economic backups. Social aspects should be considered so that the strategic planning can be done properly keeping the social values of people in mind. The technological are crucial in terms of providing the company with proper installing of the needful materials in the company. Environmental aspects are important to maintain a healthy environment in the locality of the company. Legal values should be followed to avoid any penalizing by the laws and the police. No employee should indulge in unlawful activities.


In the Porter’s five forces, the five aspects have to be kept in mind to focus on the strategic planning of a company (Dobbs, 2014). The companies face challenges every moment and it is very difficult to retain its market in the competition. They have to assess the rival companies that are challenging their customer base and identify their new competitors that are coming to challenge them. The companies should conduct a proper market survey to keep updated about the current bargaining power of the buyers. They will have to determine their selling costs according to the affordability of the customers. These are very much important for a proper strategic planning (Smith, 2013).

The final segment of the discussion continues on to the importance of KSF in strategic planning. The question is if the companies do not recognize their strengths and weakness how can they identify their success factors? The companies must identify their strengths to assess the key success factors to make the future planning for the growth of the companies. In the fitness industry, it is very hard to maintain its position as lots of new clubs are emerging and they are giving eye catching discounts to the customers. Sharp Shape Fitness Club must also keep these things in mind and develop their strategic planning according to the needs of the customers. These are indeed essential tools.



Coase, R. H. (2012). The firm, the market, and the law. University of Chicago press.

De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.

Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45.

Freeland-Graves, J. H., & Nitzke, S. (2013). Position of the academy of nutrition and dietetics: total diet approach to healthy eating. Journal of the Academy of Nutrition and Dietetics, 113(2), 307-317.

Goetsch, D. L., & Davis, S. B. (2014). Quality Management for organizational excellence. Upper Saddle River, NJ: pearson.

Goodman, T. H., Neamtiu, M., Shroff, N., & White, H. D. (2013). Management forecast quality and capital investment decisions. The Accounting Review, 89(1), 331-365.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Jurevicius, O. (2013). PEST & PESTEL Analysis. Strategic Management Insight, 13, 2013.

Marshall, S. (2013). Evaluating the strategic and leadership challenges of MOOCs. Journal of Online Learning and Teaching, 9(2), 216.

Pulver, S. (2012). Business and the Environment.

Scholes, K., Regner, P., Johnson, G., Whittington, R., & Angwin, D. (2014). Exploring strategy: Text & cases. Pearson.

Smith, R. D. (2013). Strategic planning for public relations. Routledge.

Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Engelwood Cliffs, NJ: Prentice Hall.

Thompson, W. R. (2014). Worldwide survey of fitness trends for 2015: what’s driving the market. ACSM's Health & Fitness Journal, 18(6), 8-17.

Verbeke, A. (2013). International business strategy. Cambridge University Press.

Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52-66.


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