case presenatation on fitness plus
TRANSCRIPT
Case Presentation- Fitness Plus
Presented By: Dapinder Singh Anish Garg Matt Furedi Matt Osterstrom
Fitness Plus Health Club
Owned by Randy and Martha Campbell
Opened in Nov. 1991 Located in Gadsden,
Alabama Expanded to 3
locations within 10 years
Partnered with Gadsden Regional Medical Center
Activities
Child care for up to 2 hours per day
Complete Aerobics and Strength Classes Program
Home to the Etowah County Sports Hall of Fame
Rear tiled interior area overlooking pool; this space is rentable for children's birthday pool parties
Home to Gadsden Regional Medical Center's Rehab Center
Case Summary
Experiencing growth 1995- 15 members
per hour 2000- 25 members
per hour Complaints from
members increased Study done in May 4 months needed
for construction
Case Summary Cont.
Increasing area population
New YMCA opened nearby
Two other new low cost fitness clubs Oasis Gold’s Gym
Expansion would have to be done before January
Information -What’s Going on today?
Fitness plus is a workout Facility located in North Carolina.
Fitness plus offered various activities such as:
1. Fitness Activities 2. Recreation Activities 3. Relaxation Activities
What’s going on today?
Due to growth in membership and large shifts in demand, Fitness plus is overcrowded.
Average number of members checking in at the existing fitness club is 25 per hour.
Club is currently open 101 hours per week.
Increasing the no. of working Hours.
What’s going on today?
Current Capacity measured as inputs for the Nautilus, Cardiovascular and Aerobics fitness area.
Focus is on the cardiovascular area where demand is over capacity at peak times.
The resurgence of activity in the downtown area has brought increased and new businesses.
What’s going on today?
The current competitors of Fitness Club are:
1. YMCA : They provide all services at very low cost
2. Oasis: Offers caters to young adults. 3. Gold’s Gym: Which is weight and
cardiovascular training only.
SWOT Analysis
Strengths:- Company’s owners have immense
experience in the health club and fitness industry.
Health care program is well thought-out according to the need of common people.
Lowest cost of service in the entire market of Coral Gables.
Company will hire qualified and trained staff
SWOT Analysis continue…….
Weaknesses:- Fitness Plus has less number of trainers
and staff that can become a problem in providingservice to a large pool of members.
Club is short of marketing budget
SWOT Analysis continue…….
Opportunities:- The demand for health care and fitness club
is growing rapidly in USA. Increasing heart and obesity diseases are
causing people to pay importance to exercise. People are getting familiar to going to gym
and health clubs in their daily routine life. A large segment of market is still untapped;
low income area will be of special focus for FitnessPlus, which is totally ignored by the rivals.
SWOT Analysis continue…….
Threats:- Recession and economic downturn can
slow down the growth of health clubs. Low cost offer from well established
competitors. Although it’s a small level threat due to a fact that market is rapidly growing.
Low cost health care equipments availability for at-home exercise
http://www.bizplancorner.com/SWOTSamples/startup-business-swot-analysis.pdf
OWNER’S QUESTIONS1. Were the capacities of the existing facilities
constrained, and if so, where?2. If capacity expansion was necessary, should
the existing facility be expanded?3. Owing to increased competition and growth
downtown, was now the time to open a facility to serve that market?
CASE QUESTIONS
1. What method would you use to measure the capacity of Fitness Plus? Has Fitness Plus reached its capacity?
2. Which capacity strategy would be appropriate for Fitness Plus?
3. How would you link the capacity decision being made by Fitness Plus to other types of operating decisions?
Thanks