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Introduction to Gym Shark

Gym shark is a fitness apparel and accessories brand, manufacturer and online retailer based in the United Kingdom. It is supported by over 3 million highly engaged social media followers and also the customers are in 131 countries.

It is established in 2012 by Teenager Ben Francis. The company has grown from a screen printing operations in a garage and also one of the largest brands in the fitness sector. The growth is related to the innovation and effective performance wear. The vision of the company is "Before there is an action, there is an idea". The product of the company is available in Europe and also in the United Kingdom, Sweden and Norway. The social media that is taken into consideration by the company is Youtube. Through this, the company attained success in the market. The company used to conduct the activities by hand. One of the greatest moves they have taken is to attend the various themed expos. Gym shark has a broad offering that consists of the workout t-shirts, gym bags, running jackets and also the hoodies.

Pestle : Political Factors  

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).

Analysis of Political Factors

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).

Impact of Economic Factors on Gym Shark

Porter 5 Force Model 

Barriers to Entry – Low 

 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 

Effects of Social Factors on Gym Shark

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 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:

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).

Gym shark is conducting the activities in the market for creating proper segments to launch and promote their new products in the market. The marketing department of the company is working hard for identifying the segments and also to choose the best target market to attain it. It is divided into the geographic and demographic segmentation that helps to locate their market in the cities and state. In the demographic segmentation, it is related to family, age, gender and also the income level of the people. The company should give focus on targeting the youngsters so that the company can easily attain success in the market (Hibbeler and Kiang, 2015).

Role of Technology in Gym Shark Operations

In behavioral segmentation, the consumers are segmented based on the knowledge, attitude, response and use of the product. Status, loyalty, and benefits are the part of the behavioral segments. The consumers are divided into the segments like lifestyle, personality, and values in the segmentation of psychographic.  Customers are also divided into their attitudes that can be analyzed by considering the personality of the consumers (Canhoto, Clark and Fennemore, 2013).

Value chain of Gym shark 

The value chain is the process through which the company adds value and also it consists of production, marketing, and after-sales service. Value chain is considered as an important internal analysis tool.

Primary activities 

  • Inbound logistics: In this the inbound logistics is taken into consideration in which the activities are outsourced by the company. The sustainable and recyclable material is also taken into consideration for conducting the operations of the business.
  • Operations: The Company also considers the quality control, so that the customer gets attracted towards the company. The success can be attained when the company offers quality services to the customers.
  • Outbound logistics: Gym shark considers the fast and timely logistic system so that the products can easily be reached to the customers in an effective manner. The manufacturing is done by considering the key markets.
  • Marketing and sales: The Company gives focus on the spot events and also considers the features of the products. The company tries to attain huge customer base so that the operations can be conducted smoothly. For enhancing the sales the company also offers the product through online services (Krafft, Goetz, Mantrala,Sotgiu and Tillmanns, 2015).
  • Service: To enhance the customer service the company takes into consideration proper information technology so that the product can be reached in a proper manner (Jarzabkowski and Kaplan, 2015).

Secondary activities 

  • Human resource management: The human resource is one of the essential aspects of the organization. Without the human resource, the organization will not be able to conduct the day to day activities. Training is also important for the employees of the organization so that the activities can be conducted in a proper manner (Armstrong and Taylor, 2014).
  • Technology development: The technology is taken into consideration in which the company enhances the production level of the products. Gym shark can easily enhance the sales through e-commerce. It is essential that the company should consider updated technology so that the activities can be conducted smoothly and in less time (Dickson, 2017).
  • Firm infrastructure: In this point, the main consideration is related to the talented top management. It is essential that the company should have an effective top management so that the decisions of the organization can be taken properly (Power, 2015).


Strength is considered as one of the important aspects of the organization, to survive in the market. Quality is the strength of the company. By offering quality products company attracts more customers towards the product. The quality that is offered to the consumers, gives direct impact on the satisfaction level of the customers. The consumer of the company is present in 131 countries and to satisfy the customers, it is important that the company gives effective services so that the profitability can be attained. Distribution channel is also one of the major strength of the company, as the products are delivered effectively to the consumers. The business model of the company is different that emerges as a prominent player in the market. The company gives assistance to the sales activities by having proper analyses of the needs and wants of the consumers. The company has convincing strategies of marketing that induces customers to buy the products (Madsen, 2016).


It is evaluated that every business has some weaknesses. By taking into consideration the Gym shark company it is seen that the organization offers products that come from the same group. The company offer products to the same group that gives negative impact on the sales of the product. Also, it is difficult for the organization to manage the products in an effective manner. Another weakness is related to the market share of the company. The company has a small market share in various areas that give negative impact on the profitability of the organization. The company should give the main emphasis on attaining the large market share, and then only the success can be attained in a proper manner.  The main weakness of the company is that it is serving limited sector and also the cost arrangement of the company is far from the ground. The company should also give focus on minimizing the promotions that make the customer confuse and also the complaints of the customers should be resolved immediately so that the image of the company can be enhanced.

Environmental Factors Affecting Gym Shark


Every company has various opportunities but it requires a right time to grab the opportunities. The company can easily access the present market that enhances the profitability. Gym shark also has an opportunity to build up innovative products to induce the customers. The contribution is also made by the business social accountability. The company also has a bigger customer base and it can design with rising sports teams, clubs globally (Perroni et al., 2015).


Due to the high competition level in the market, the company faces threat in the market.  The demand for the manufactured product can be reduced due to the economic slowdown in many countries. The environmental and societal concern is also one of the factors that impact the activities of the organizations.  The company also has a threat from the other brands that deals in fitness clothing. The level of the buyer in this industry is high and also the loyalty is low as the comparison is made other brands. The main risk to the company is due to the change in technology. The change in technology has a major threat to the company. The new entrance is also one of the biggest threats to the company (Lupton, 2013).


In this report, it is concluded that by taking proper measures the company can enhance its operation in the market. Gym Shark should take into consideration effective steps that give direct impact on enhancing the satisfaction level of the consumers. The company should give emphasis on the weakness that is prevailing in the market so that the goals and objectives can be attained in a proper manner. The quality of the product should also be taken into consideration so that the business can easily compete in the competitive environment.


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