STRATEGIC PAPER

FITNESS AND HEALTH GYM

 Company Profile

Company Name: Fitness and Health Gym

Address: UPS 5, San Dionisio, Paranaque

City
• Vision:
To lead and support people in their pursuit of a healthy
mind, body, and soul.

• Mission
We will deliver innovative fitness and lifestyle programs, and
we will inspire and support you in your commitment to
enhancing the quality of your life, one person at a time.

• Objectives
To make best use of our equipment and resources through
well-attended sessions.
Core Values

● Community
We are dedicated to creating a supportive and safe environment where people
are challenged by friends, not strangers.

● Empowerment
We strive to ignite a sense of strength, determination and success that
contributes to a higher quality of life for others and ourselves.
● Respect
We want to inspire those around us by having an unbiased respect for the rights,
values, beliefs and property of everyone. Simply put, we earn respect by respecting
all others.

● Transparency
We promise to be real, honest and always up-front. What you see is what you get.

● Fun
We will never take ourselves too seriously. We train because we love to train, and we
love the people who train with us.
 THE TRENDS AND CONDITION THAT ALTER COMPETITION

• The Increased Rate of Technological Change

The present rate of technology change has gone too fast on the fitness
industry . The industry is shifting away from these rudimentary tools and
leveling up to higher tech solutions that do a better job of improving the
body and the mind as a complete unit. Through wearable enhancing
home fitness, the popularity of these devices is helping users better
track and evaluate their performance, making gym visits less important
to their overall fitness journey.
 THE EXTERNAL INFLUENCE IN ABOVE RETURN ON
INVESTMENTS
• The Availability of Fixed Assets
The business is dependent on the equipment the customers will use, and the exercise are changing.
While free weights, are still vital, activity specific equipment and training are still included on the gym
plans.

• The Economies of Scale

The more quantity of consumers acquiring, the more finance the business will achieve. It falls on the
long run average costs of the business because of the increased scale of production due to the
improvement number of members on the gym.

• Degree of Market Concentration

The gym focuses on improving its facilities in order to achieve its mission and vision. It concentrates
on the field of expertise which is having an efficient facility in order to motivate the customers on
having a healthy lifestyle.
 THE ENVIRONMENTAL SCANNING
Fitness and Health gym which offers customer through the best
equipment, top class fitness knowledge, and customized fitness
plans. The basic purpose of environmental scanning is to help
management determine the future direction of the organization so
conducting a SWOT analysis is needed because it captures the key
strengths and weaknesses within the company and describes the
opportunities and threats facing the gym.
 Strengths
• They have nice facilities such as a spacious gym, enough equipment and quality
trainers
• Have a huge passion for personal training

Weaknesses
• Need more investment in new technologies
• Low in marketing budget and staff

Opportunities
• Growing demand of fitness that the gym can capitalize on
• Their consistency in giving good quality and service that can attract more
customers

Threats
• Competition with other high class gyms in the area
THE BUSINESS ENVIRONMENT

• The General Environment

• Economic factor, concerns about the economic issues such as

unemployment rates that are not included because the gym
instructors are also the people who own the gym. Social factor, the
business think of some strategies on how will they market the
offered service, such as having promos for the improvement
number of customers. Technological factor, the gym instructor
posts her daily session with the customers that helps market the
business through social media.
Industry Environment
The business stands out and the business get involve in the
local community, the business will survive.

The Competitor
The business has a business plan that guides the business to
achieve its goals and to prevent failure. It set targets fit for a
business which enables to evaluate its progress against
identifies reference points.
 SEGMENTATION OF THE GENERAL ENVIRONMENT
The Demographic Segment

a. Population Size
The gym can accomodate about 10-15 customers.

b. Age Structure
The preferrable age is 18 years old so that the body becomes mature enough to bear vigorous
exercise at the gym but the gym is open for anyone as long as there is no serious health issues.

c. Geographic Distribution
The business is placed on an urban area. UPS 5, San Dionisio, Paranaque City.

d. The Ethnic Mix

The business is open for everyone which means it is open for any ethnic or nationality.
• The Economic Segment
Prices in signing up on a gym depends on what quality the gym offers or
whether if it is a well known business that has many branches. The
economic segment concerns economic stability, that’s why the owners
ensure the quality they give to their customers.

• The Political and Legal Segments

All firms must follow the law, the owner gives an importance on this sector.
The owner monitor on finding how upcoming legislation can affect their
activities.

• The Social and Cultural Segments

The best marketing approach to this market segment is to be very
welcoming to the consumers and to establish programs in place to meet
their needs. Reassurance and motivation delivered by the fitness staff is
the primarily key to success.
• The Threat of New Entrants

A. Economies of Scale
The gym may experience the risk of the economies of scale when it goes along in competition
with bigger gyms with valued or better equipment but offer services at low cost.

B. Product differentiation
The gym can gain or maintain more customers if new entrants will rise in the are because
people or customers have this perception that it will always be better since it had prove itself in
the market and that it knows or more familiar with customer needs and demands so it can
address their fitness concerns better.

C. Capital Requirements
The fitness and health gym accomplished requirements of what a gym must have before being
able to establish their business. New entrants who have a huge capital and more modern
equipment and facilities has more edge.
D. Access to distribution channel
The gym has better access to distribution channel since it has been established long ago that it has
made connections though customers and acquaintances that do the promotions of the product for
them without spending more for advertisement.

E. Government Regulations
New competitors for their gym may find it discouraging to establish or enter the business as they will
have to comply with all other requirements for the business.
• The Power of the Suppliers
The supplier of the gyms equipment has the ability and control on how they will sell their products
that the business need. If they want to set their prices higher and the gym needs to buy it, they
have no choice but to go for it.

• The Buyers Bargaining Power

If the suppliers has the power in controlling their prices and products, the buyers or the gym itself
can bargain more discounts to make it more convenient and cheap for them. The suppliers will be
forced to lower their prices to gain loyalty.

• The Threat of Substitute Product

Customers will always find new services and equipment's in the gym. So the gym has to innovate
more to avoid competitors in offering new substitute product to be-test them.

• The Power of Competition

Big competitions require close attention from the gym. They need to keep an eye because as the
day passes by, innovation and upgrades from gym competitors were increasing.
MANAGERIAL DECISION MAKING

• Uncertainty
Fitness and Health Gym generates new strategy and approach by continuing to
market its innovative ways in maintaining its customers weight.

• Complexity
The Fitness and Health Gym provide easy to use equipments. The gym ensures to
provide the proper and right service of what the customers needs to be done.
THE CRITERIA FOR SUSTAINABLE ADVANTAGE

• Valuable Capabilities
Fitness and Health Gym are located inside an subdivision which there are no threats
since it’s the only gym in there subdivision they have a higher chance to expand
their business or exploit opportunities in their environment.

• Rare Capabilities
There are no rare capabilities that Fitness and Health Gym can offer since their
business is gym, most of their products are imitation by other gym.
VALUE CHAIN ANALYSIS

• Primary Activities
A. Inbound logistics - financing and upgrade costs
B. Operation - system and procedures in their everyday services
C. Outbound logistics- satisfaction of their members and customers
D. Marketing and sales - social media marketing is the most effective way for them
E. Service - the good image of the gym even though they lack of new equipment's

• Support Activities
A. Procurement - maintaining of their equipments
B. Technological development - the gym needs innovation in producing high
technology equipments
C. Human resource management - their drive in motivating trainers and employees
to be able to serve better
D. Firm infrastructure - their facilities is simple and cozy
THE INDUSTRIAL AND COMMERCIAL CONSUMER

A. Product Segments
Machineries and equipment
- Squat rack barbells
- Bench press
- Hammer strength machines cables and pulleys
- Dumbbells
- Pull down machine
- Leg curl machine
- Preacher bench
- Leg press machine
-Peck deck machine
- Indoor cycle bike
- Kettle bells
- Stability balls.

B.Geographic Distributions
- Local Market
Customers located in that area or city
TYPES OF BUSINESS LEVEL STRATEGY

The strategy of the low key and simple fitness and health gym is providing the necessary needs of
what the people who strives for fitness makes sure that they are happy, fulfilled and satisfied about
their body.

THE MODEL OF COMPETITIVE STRATEGY

1.The market characteristics

The competition for the market of gym and fitness centers on the Philippines is highly recognized by
the mass. Also, it offers personal gym instructor who is also the owner of the business.

2.The quality and extent of individual firm’s strategies.

The fitness and health gym may be small and incomplete compared to other competitors but the
business has its own business strategy. The owner of the gym is also a registered nurse, which
becomes the advantage that is an intangible resource of the business because customers can assure
that the gym instructor have a knowledge about the health of their customers.
STRATEGIC RESPONSE TO COMPETITOR’S ACTIONS

1.Corporate Awareness to Competition

From the changes and current developments and lifestyle, attitudes and preferences of consumers,
small entrepreneurs in the sports industry are trying to benefit from the demand for sports activities
and the growing number of fitness gym which leads to a vast number of competitions that the health
and fitness gym must step up their game and build up their strategy.

2.Motivation to Respond to Competition

The health and fitness gym must remain alert at all times to their competitor’s actions that could
possibly threaten their market’s position. They may be a small and growing gym but they can still work
through competition by increasing their market share by introducing new equipment’s facilities and
services.

3.Ability in Terms of Resources and Technology

Fitness and Health Gym is a small organization in UPS 5 with no other competitors around the area.
That is only fitness gym established. This gym has no direct competitor. There could be less chance of
having to compete and attack by other fitness gym around UPS 5.
TACTICAL ACTIONS TO COMPETITIVE RIVALRY

Fitness and Health gym is a small organization it gives quality service of usage of
their newly equipment. They give fair pricing that people in that area could afford.

Being tactical means making a specific plan for a long term goal. Marketing
strategies could come from using social medias because it's inexpensive and can be
used to convey multiple messages and client/member referral programs where they
can provide incentives for loyal members.
FACTORS THAT INFLUENCE THE LIKELIHOOD OF RIVALS’ ATTACK

● OrganizationalSize Strategies
The Fitness and Health Gym is a small organization, since it was a small organization it’s a great
chance for them to develop greater variety compared to large organizations.

The competitive strategies of smaller firm against its big rivals are:
A.Lower gym rates
B.Quicker and flexibility in action and response
C.Equipment s and technology base through imitation
D.Lower investment cost in research and development
Customer’s Perception of Quality Products
a.Performance
- The Fitness and Health Gym offers quality service that leads and supports people to
pursuit healthy mind, body and soul. The business is dedicated to create supportive
and safe environment.

b.Product Features
- The gym do their best to make use of their equipment and resources. They offer the
best quality though it is not that complete when it is compared to other gyms but it
maintains clean and hygienic gym equipment.
c.Flexibility
- Rapid changes will occur in technology and in economy, the business use
flexibility as being rigid and by being adaptive on what is new in the environment.
The Fitness and Health Gym is willing to try new methods and processes, even
the old processes seem to work just fine.

d.Conformance
- The business determines whether a product or system meets some specific
standards. They obey what is need and required on the legal laws and aspects on
how to manage the business.
e.Durability
- The assurance or probability that an equipment, machine, or material will have a
relatively long continuous useful life, without requiring any inordinate degree of
maintenance.

f.Aesthetics
- The gym have a visual beauty that appeal to other senses. The interior design of
the fitness and health gym is simple yet convenient to the customers. The big
mirrors that was placed on the both sides of the gym makes it look like wider.

g.Serviceability
- The owner assigned a person who will always look up on the facilities. There is
also a wind passing through the grills of the gym which results that there is no
problem on the air ventilation of the place.
PATTERNS OF RELATIONSHIPS BETWEEN STRATEGY AND STRUCTURE

1. Increase in Sales Volume

The Fitness and Health Gym started as a brand new and fresh gym this last
month of March. Since then, they started to gain numerous customers and volume of
sales went up.

2. Vertical and Horizontal Integration

Fitness and Health Gym just started its operation and is not yet into partnership and
doesn’t have board of directors since it’s’ just the owner who handles the whole gym
and is responsible in maintaining and accommodating their clients.
3. Product Diversification
The Fitness and Health Gym expands and different from other gym, because they
operates Monday-Sunday, whereas some other gym only operates from Monday-
Saturday, it was their advantage from other small gym, and they also offers some
product like protein shakes, healthy foods etc.

4. Business Diversification
They can focus on coming up with a new ideas to make their business more known
from the other people to achieve their desire profit and return on investments. They
could build another gym where many people are present so they can expand their
business.