UR UMUC Healthy Fitness Center Business Environment Analysis Essay

An Analysis of UR UMUC Fitness Center

The Business Environment Analysis for the UR UMUC Healthy Fitness Center was conducted to understand the current province of the concern and usage that ensuing information to find the best class of action to better the concern modal of the organisation. As the new director of the installation. it is critical to hold a clear apprehension of the facility’s strengths and failings in order to change by reversal the five twelvemonth tendency of worsening concern. which may be attributed to worsening disposable income ( 1 ) . The analysis encompasses the usage of Porters Five Forces Model ( 2 ) and Three Generic Strategies ( 3 ) as a foundation for the analysis. Buyer power is the ability of clients to drive down monetary values. which is high in this industry. ( 2 ) Buyer power has a negative impact on the industry as a whole. and hence has a impersonal impact on the UR UMUC installation specifically. but it will greatly impact the concern scheme. Health consciousness has steadily increased since the 1980’s and the fittingness industry has grown with it. go forthing possible clients a battalion of fittingness installation options in countries of high populations such as metropoliss. suburbs. and college campuses. This has forced these installations to keep competitory monetary values in order to maintain and turn their client base with the purpose on deriving a net income bargain volume and accessory purchases. Supplier power is how easy it is for providers to drive monetary values up. ( 2 ) It is low because as the fittingness industry grew. the industry section of companies providing quality exercising equipment grew every bit good. go forthing installations with beginning of supply options when equiping their installation. There are exclusions to supplier power when it comes to new engineering being incorporated into the industry. New merchandises with a competitory advantage will increase supplier power until rivals of the provider produce similar merchandises. This consequences in a positive impact on the UR UMUC installation and has limited consequence on its concern scheme. The menace of permutation is when your clients can happen another manner to make what you do. ( 2 ) The menace is high because of assorted. and rather frequently less expensive options available to clients such as in place picture ( DVD. online streaming. etc. ) . work out plans ( P90X. insanity. etc. ) . that are both popular and effectual. Additionally. many corporations. educational establishments. retirement communities. and community centres. have their ain fittingness installations and plans available at low costs for eligible individuals. who are besides possible clients. Threat of New Entry is determined by how easy is it for new participants to come in your market. ( 2 ) The menace is comparatively low and has a positive consequence because the moderate to high startup costs to set up a fitness installation. This does impact UR UMUCs concern scheme because while it is dearly-won for new entrants who want to vie straight. if a new concern has a competitory advantage through invention or engineering. they could earn the fiscal support to come in the market and present a important menace. Competitive competition: The key here is how many rivals you have and what their capablenesss are. ( 2 ) Competitive competition is ferociously high in this industry because success is gauged entirely on the sum of clients and their degree of use of the installation. This has a negative consequence on the UR UMCE Healthy Fitness Center and affects the concern scheme because it must maintain its monetary values low to stay competitory. particularly during economic down bends. The best fittingness centre in the universe will shortly travel out of concern if it can non acquire adequate clients to walk through the door and finally cover the operating costs.

Generic Scheme:

The distinction scheme will be utilised because involves doing your merchandises or services different from and more attractive those of your rivals. In this industry success is based on the volume of clients in relation to that of competition. The ability to present high-quality merchandises or services in concurrence with effectual gross revenues and selling. so that position clients understands the benefits of fall ining UR UMUC Healthy Fitness Center. ( 3 ) Strategic Business Area:

Selling and gross revenues is the concern country will be my primary focal point because it straight supports the generic scheme. and it is the client volume that
straight effects net incomes. with the secondary consequence that increased rank will supply the support for extra betterments required for the installation to be competitory and maintain rank growing.

Procedure to be improved:

The procedure that will be improved will be the cognition direction of the equipment use informations straight related to the demographic information of the installations clients. By integrating the right engineering. UR UMUC can increase client satisfaction. every bit good as the efficiency and effectivity of the installation. which can be the focal point of a selling scheme that. in concurrence with word of oral cavity from satisfied clients. will increase sale through increased rank.

1. IBISWorld. ( 2013 ) . “Gym. Health & A ; Fitness Clubs in the United states: Market Research Report. ” ibisworld. com. retrieved from hypertext transfer protocol: //www. ibisworld. com/industry/default. aspx? indid=1655 2. Karen Goldfarb. ( 2014 ) . “Porter’s Five Forces: Tiping the Balance of Power in Any Business Situation” . karengoldfarb. com. retrieved from hypertext transfer protocol: //karen-goldfarb. com/marketing-strategy/porters-forces-aka-forces-tip-balance-power-business-situation 3. Mind Tools Ltd. ( 2014 ) . “Porter’s Generic Strategies Choosing Your Path to Competitive Advantage” mindtools. com. retrieved from hypertext transfer protocol: //www. mindtools. com/pages/article/newSTR_82. htm # sthash. pj5CqMn9. dpuf