Table of Contents
Introduction......................................................................................................................................2
SWOT Analysis...............................................................................................................................2
Strength:.......................................................................................................................................2
Weakness:....................................................................................................................................2
Opportunities:...............................................................................................................................3
Threat:..........................................................................................................................................3
Organization Structure/Governance................................................................................................3
Distinctive competencies.................................................................................................................4
Common Trainers........................................................................................................................4
Individual Trainers.......................................................................................................................5
How to develop Competitive Advantage.........................................................................................5
Opportunities for Shared Value Strategies......................................................................................6
Human Resource Differentiation.................................................................................................6
Redefining Productivity in the Value Chain................................................................................6
Improving Regional and Local Environment...............................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Introduction
Health Club is in business to help its clients achieve their Health goals and at the same time to
make profit. We are aware that there is competition in the gym and Health industry which is why
we took out time to conduct an effective SWOT Analysis, as stated in our gym and Health center
strategic plan; before investing our hard earned money (Ansoff et al,. 2018). We know that if we
get things right before starting our gym and Health club, we will not have to struggle before
attracting loyal clients and building our membership base to a level where we can easily
breakeven. We hired the services of Senior and Junior Instructors, HR and Business consultant to
help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a
preview of the result we got from the SWOT analysis that was conducted on behalf of Fit as
Health Club
SWOT Analysis
Strength:
One of the obvious strength that will definitely stand as a plus for Fit as Fiddle Gym and Health
Club is the fact that our facility is centrally located in a densely populated – residential area our
location is in fact one of our major strength (Ansoff et al,. 2018).
We equally have a team of highly qualified professionals who will work with all our clients to
achieve their aims or enrolling in our gym and lastly our membership package is one of the best
that anybody it is cheap and affordable.
Weakness:
Having critically looked into our business model, we were able to identify two major
weaknesses. One is the fact that we are a new business and the second is the fact that we may not
have the financial resources required to match up with existing clubs in the city when it comes to
acquiring latest gym equipment and generating the needed hypes that can drive traffic towards
our facility (Moutinho & Vargas-Sanchez, 2018).
Opportunities:
We are centrally located in one of the busiest areas, and we are open to all the available
opportunities that the city has to offer. We also run a 24 hours, 7 days a week gym and Health
club; thus giving us the advantage to leverage on any available opportunity.
Threat:
Some of the threats that are likely going to confront Fit as Health Club is unfavorable
government policies, demographic / social factors, downturn in the economy which is likely
going to affect consumers spending and lastly, the emergence of new competitors within the
same location where our gym and Health club is located
Organization Structure/Governance
Since the organization is yet to expand to various other locations, it is vital that we
consider the expanded strength. The best way to have the organization on a better leadership is to
have a structure below:
The head or the organization will be the director. This position entails entire management of the
company. There will be the center head and the marketing head both of who will be reporting to
the director. Under the center head; there will be the chief trainer and the accountant. The
common trainer and the individual trainer will both be answerable to the chief trainer. All the
competencies and personnel and available except for the common and individual trainers who
will be hired as noted in the below paragraph.
Distinctive competencies
Common Trainers
Common trainers are responsible for training individuals and developing a healthy workout
regimen for all their clients. They will work with different muscle groups and combine this
knowledge with cardiovascular training to provide their clients with the best exercise program
possible (Steiss, 2019). They must demonstrate various exercises and improve their client's
technique. They work either in a client's home or a gym. Common trainers will conduct fitness
consultations and assessments. Develop unique programs that ensure client safety and
enhancement of common fitness goals to members and guests throughout the club.
Individual Trainers
Individual trainers will instruct, and motivate individuals or groups in exercise activities,
including cardiovascular exercise (exercises for the heart and blood system), strength training,
and stretching. They will work with people of all ages and skill levels. Individual fitness trainers
will design and carry out workout routines specific to the needs of their clients. In larger
facilities, personal trainers must often sell their training sessions to members. They will start by
evaluating the clients' current fitness level, personal goals, and skills (Ethiraj, Gambardella &
Helfat, 2018). Then, they will develop personalized training programs for the clients to follow,
and they monitor the clients’ progress.
How to develop Competitive Advantage
Competitive strategy is also influenced by the specific relative position within the
industry. Through positioning, Health Clubs can possess two basic types of competitive
advantage: low cost and differentiation. Differentiation, when the club seeks to be unique within
the industry along some dimensions that are valued by buyers (higher quality, more functions
etc). If it succeeds, it is then rewarded for its uniqueness with a premium price. However, when
choosing to differentiate, the club should seek appropriate ways that lead to a price premium
greater than the cost of differentiating.
Focus, which rests on the choice of a narrow competitive scope within an industry and
the optimization of the strategy for the target segment. In cost focus, Health Club will seek a cost
advantage in the target segment. In differentiation focus, Health Club will seek differentiation in
the narrow segment.
Opportunities for Shared Value Strategies
Human Resource Differentiation
People are more powerful than ever, and are using this power to move health Club forward.
Generating and scaling social change has become our collective responsibility. Business will
long focus on creating shareholder value, but, as we begin to work together, consumer and
employee pressure is pushing brands to consider broader value creation.
Redefining Productivity in the Value Chain
If the club is able to utilize resources, energy, logistics it will be able to create shared value in
order to boost its expansion and growth in the industry. Since the club offers services to the
clients it will be wise that it keeps records of events and errands to boost its service delivery.
Improving Regional and Local Environment
Improving skills competencies and supporting or abiding by the regulatory that support the
business is one key facet to consider in the business especially when the club plans to expand.
With such it will help create shared value. In addition, it should also abide by the cultural
interests of the building it operates in and it will boost the business.
Conclusion
Finally, with the anticipated strategic plan noted above, it is evident that with the best
cultural strategy and business competitive advantage, the health club is expected to increase its
brand image as well as expand as planned with increased profits.
References
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Dess, G. G., McNamara, G., Eisner, A. B., & Lee, S. H. (2019). Strategic Management:
Creating Competitive Advantages. McGraw-Hill Education.
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic management.
Strategic Management Journal, 39(6), 1529-1529.
Höglund, L., Holmgren Caicedo, M., Mårtensson, M., & Svärdsten, F. (2018). Strategic
management in the public sector: how tools enable and constrain strategy making.
International Public Management Journal, 21(5), 822-849.
Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Steiss, A. W. (2019). Strategic management for public and nonprofit organizations. Routledge.