Strategic Thinking and Effective Changes Assignment (GC0404)

Executive Summary

The aims of this paper are to critically analyze and evaluate the environmental situation and challenges of the UK health and fitness sector to develop business strategies for Fit Fixed, a starting and small and medium health and Fitness Company in the UK. For analyzing the business environment and finding out the challenges this paper applies PESTLE analysis, Porter’s Five Forces analysis, and the Fishbone model. The finding of these models and analyses show that the UK health and fitness sector facing challenges mainly from political, economic, social, and technological factors.  In addition, customer bargaining power, competitive rivalry are very high in comparison to threats of new entrants, threats of substitutes, and supplier bargaining power.

Fit Fixed aims to develop its new market and products in the local community to gain expected revenue and profits. The vision of Fit Fixed is to be a leading health and fitness organization in the UK within three years’ time. The mission of Fit Fixed is to attract customers and their retention and loyalty by providing excellent customer services, and quality products. To gain its aims and objectives, Fit Fixed can apply a number of models including Ansoff’s growth matrix, Porter’s Value Chain analysis, SWOT analysis, Porter’s Generic model, Marketing Mix (7Ps), and Blue Ocean strategies. The successful applications of these strategic models can give outstanding outcomes to Fit Fixed.

Table of Contents

1.0 Introduction.

1.0 Strategic objective for Fit Fixed.

The vision of Fit Fixed.

The mission of Fit Fixed.

Aim of Fit Fixed.

Objectives of Fit Fixed.

2.0 A critical analysis of the core challenges faced by smaller enterprises in the activity sector.

2.1 PESTLE Analysis.

2.2 Porter’s 5 Forces Analysis.

2.3 Fishbone model analysis.

3.0 Strategic tools to adopt a successful growth strategy for Fit Fixed.

3.1 SWOT Analysis.

3.2 Value Chain Analysis.

3.3 Product-Market Growth (Ansoff) Matrix for Fit Fixed.

3.3 Porter Generic Model

3.4 Marketing Mix Model analysis for Fit Fixed.

3.5 Blue ocean strategy for Fit Fixed.

4.0 Conclusion.

10. References.

1.0  Introduction

After the US, UK is the market which is the second most popular for private fitness and health club and their business all over the world. When the UK was declared as the host of Olympic 2012 by the International Olympic Committee, the people of UK embraced the health and fitness as their national activity. It became one of the lifestyles of the UK population (Smith, 2008). In the present day, the gyms have modern and advanced equipment, and exquisite environment, and high-class service with professional coaches. However, along with high-quality service, the price is also higher. As the businesses of fitness and health care have been increased and all of the clubs want to earn a profit, the level of competition in this kind of business is also higher (UKactive, 2018).

1.1 Strategic objective for Fit Fixed

Aim of Fit Fixed

The aim of Fit Fixed health and fitness center is to develop a healthy environment in the country by encouraging more public to become more active more frequently. To gain this aim Fit Fixed needs a powerful, spirited, and prosperous sector with the support of a good investment from the community. The aim of Fit Fixed will ultimately bring benefits to society besides their business (FITUK, 2018). The vision and mission of Fit Fixed are included in Appendix A.

Objectives of Fit Fixed

1. To be one of the leading health and fitness clubs by the end of the first year.
2. To promote different health advantages that can be gained from their center to the people of the UK community.
3. To recruit professional and expert workers in order to deliver one of the best and remarkable services in the industry of health and fitness.
4. To form their sustainability by confirming a firm and long-range feasibility
5. To enhance their understanding and knowledge of the staff and imply the best exercises to have a leading edge in the industry continuously.

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2.0 A critical analysis of the core challenges faced by smaller enterprises in the activity sector

2.1 PESTLE Analysis

The environment of any business impacts its operations heavily. Therefore businesses need to assess and evaluate their business environment and market continuously. There are various models that a business firm can use to analyze its environment. However, among all of them, PESTEL analysis is one of the detailed analysis models that is mostly used all over the world. Through PESTEL analysis different factors can be analyzes that impact the business environment (Johnson et al., 2009)

Figure: PESTLE Analysis       Source: Johnson et al. (2015)

Political factors

According to the results of the EU referendum (2016), the market and economic state have become notably uncertain. The impact of Brexit on the health and fitness sector of the UK is yet indefinite (UKactive, 2018). Nevertheless, the government of the UK is presently motivating parents and particularly single parents to go back to their workplace. The government is encouraging them to start their jobs, at least part-time so that the health and fitness sector can have an increasing number of staff in their sector of business (Cedar, 2014). There are many campaigns on behalf of the government like “active kids”, “get set for life”, “swap it, don’t stop it” and “how do you measure up”. This helps to encourage the community to get healthier and fit lifestyles. These campaigns help the gyms to get more memberships (UKactive, 2018).

Economic factors

The principal economic factors involve fluctuation rate, rate of interest, and economic state in general. The health and fitness sector generally a luxurious area for the people. Therefore if the economic state gets down, the consumers of this sector get decreased (UKactive, 2018). As the economic fluctuation rate will be increased, the income level of the UK population will also get reduced. Moreover, due to economic downturns, many health and fitness clubs are offering their customers more flexible offers. Therefore the competition level in the market is getting higher (Health club management, 2018). The Brexit issue can also cause a reduction in the salary range of the staff in health and fitness companies. They will need to give their customers discounts and improved service in order to survive the competition in the market (UKactive, 2018)…………………

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