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24 Hour Fitness Worldwide Inc. Implementation Plan Essay

Company background and organizational mission

24 Hour Fitness Worldwide Inc. is based in California and was established in the year 1983 for the purposes of providing fitness services to the population. The company is focused in providing 24 Hour fitness services seven days a week. The company was originally started by Mark Mastrov, and then later the company merged with investment-banking firm known as McCown Deleeuw and Company in early 1990s.

The year 2006 saw the company acquire some more centers within Asia which enabled them control significant market share within the region. 24 Hour Fitness Worldwide operates over three hundred and fifty fitness centers within various American States. The company has recorded significant improvement in their financial data within the last decade with over 7% revenue increase experienced in 2006 (24 Hour Fitness 2012).

This has ensured 24 Hour Fitness a good financial security necessary for expansion purposes. Aim of 24 Hour Fitness Company is to provide competitive services as way of life for all population categories from young to elderly people. Their value statements revolve around key points involving innovation and development of unique business practices (24 Hour Fitness 2012).

Backgrounds and accomplishments of key anticipated leadership

The company developed strong corporate culture which has enabled them operate fitness companies amongst various population segment making fitness appreciated for life across all groups of individuals. The position of Chief Executive Officer was assumed by Carl Liebert III in the year 2006. He has contributed towards strategic expansion of the company within international and domestic markets.

This was made possible through implementation of appropriate marketing principles and strategies. The company established different types of clubs operating within the U.S. region. Each club offers unique specialized services such cardiovascular, free weights, basketball training, swimming pool as well as tanning salon (24 Hour Fitness 2012).

Marc Mastrov has worked in the industry for fairly good number of years, hence the extensive knowledge that he has acquired enables creative innovation making the company acquire considerable market share. Such strong leadership skills capable of producing innovative ideas are required of every manager within fitness industry.

The strength of corporate leadership headed by Mastrov within 24 Hour Fitness Worldwide has contributed tremendously towards the company’s success. Mastrov’s style of leadership can be described as visionary, articulate, focused and non-substitutable. This has enabled continued upgrade and consistent development of cohesive organizational culture, where all employees are recognized for their performance.

At the same time, Mastrov has enabled high employee retention rates and development of good relationship amongst employees. The manager has also learned the art of satisfying consumer demands and needs by use of other success factors such as company culture and vision (24 Hour Fitness 2012).

Review of strategies and recommendation for the best strategy

Cost Leadership Strategy is one of the widely used business strategies within the company. The strategy majorly focuses on meeting consumer demands at affordable prices using available equipments. The management of 24 Hour Fitness Company ensures that their services satisfy most basic fitness needs appropriate for even the elderly.

In order to reach larger market segment, their marketing strategy focuses on offering multiple fitness centers within same region, which enables them to capitalize on economies of scale while keeping costs as low as possible. This calls for efficient management services capable of generating high profits.

24 Hour Fitness Worldwide applies the use of creativity in their marketing campaigns. The company has developed one of the strongest brand images within domestic and international market. Such positioning grants the company best opportunities required in controlling larger market share. The use of experienced management team ensures that productivity remains high through development of good relations between the company and the market.

At the same time, 24 Hour Fitness Company applies unique means of marketing campaigns which involves use of iconic names found within sports and fitness industry such as Shaquille O’Neal. Such strategy influences consumers’ choice since they would rather prefer to be identified with professional figures. It is also possible for the company to capture new market segments through the use of such marketing strategies.

Additionally, 24 Hour Fitness Company utilizes the use of sponsorship activities during global games such as Olympics. In such cases they’ve always opened sponsorship accounts with big losers as well as winners which have ultimately granted the company countless sponsorship opportunities (Mintzberg et al., 2003).


For marketing strategy to work efficiently, management of 24 Hour Fitness should consider gender balance. There is necessity of including a female fitness figure, capable of dealing with females within their various areas of fitness. This will ensure that all the consumers within each market segment are catered for, since female consumers will be motivated by such female figures.

Such recommendation should ensure incorporation of one young female sports-lady recognized within her area of specialization; either football or soccer. Such strategy enables many customers to compliment many current professionals within various fields of sports.

However, 24 Hour Fitness Company should ensure that such professional figures, are active within their fields and are able to re-align their attitude and responses to match the company’s corporate culture. Despite the benefits gained from such strategy, the implementation process increases level of marketing costs.

The marketing campaign should be extended beyond the current market segments to target passenger terminals. Such areas are usually rich with consumers creating an opportunity for fitness centers. However, in such areas, 24 Hour Fitness Worldwide should ensure maximum security measures are undertaken especially within gates of their centers. Inclusion of such facilities especially within airport terminals assists in reducing waiting time.

Implementation plan

The company, 24 Hour Fitness Worldwide, coordinates a number of activities within their premises which has ensured their strong position within the market. Marketing department should ensure that company’s relationship with consumers is formidable for the purposes of sales improvement. Generally, there exists expansive consumer base both domestically and internationally, providing the company with opportunities on their service deliveries.

At the same time, sales representatives would be used in the process of reaching those within crowded areas, offices and passenger terminals. This will ensure creation of public awareness on importance of fitness as part of promoting overall health amongst the population.

Such services can be provided through social media or providing customers within various offices with brochures having detailed information on kind of facilities, qualified personnel and services offered. During implementation process, management under the leadership of Mastrov should fully rely on improving quality of services. This can be done through providing consumers with quality time.

Such kind of improvement requires incorporation of upgraded equipments using modern technology. Inclusion of new processes within marketing system and strategies will ensure that the company is well established within densely populated centers. However, location of centers as well as the nature of space utilized determines number of customers that can be accommodated per training session.

24 Hour Fitness management systems should at the same time ensure adequate provision of employee wages within various centers. This ensures maintenance of high motivation standards amongst the staff. In the process of establishing such fitness centers, the company should factor-in average income per person within various target population.

This calls for adoption and application of criterion with the ability of estimating possible economic status of target markets within international market

Risk management plan

Operations within Fitness industry basically focuses on social and physical well-being of various individuals. The 24 Hour Fitness Worldwide, focuses on personally known social and health benefits. Most published articles on health focuses on consequences of having poor physical exercises. One of the major risks faced within the industry is price fluctuations. Most fitness companies provide services at cheap and affordable prices due to consumer behaviour.

Issues surrounding economic recession affect the business within some regions hence calling for frequent renovation practices on equipments. The management at some point discovered a trend which showed sustained growth and better long-term prospects for such enterprises compared to other business enterprises. Such discoveries echoes true sentiments for companies involved in fitness business within the industry.

Extensive research should be done on effective marketing campaigns and associated growths. This begs the question on various performance levels of some specific companies during economic recession. There has been significant rise in the number of small-sale fitness centres due to increase in customer base and dominance by large companies on specific market segments.

However, as one of the best Fitness Company within United States region, 24 Hour Fitness Company takes pride on the high technological and modernized level of services they offer.

The management should establish an investigation team capable of looking into crucial matters hence come-up with concrete solutions capable of countering various failures encountered in the process of providing customers with satisfactory services based on technical dimension.

Several business organizations within Fitness industry consider marketing as one of the most fundamental functions required for the purposes of meeting consumer requirements and business objectives. Achievement of 24 Hour Fitness business objectives depends on the nature of renovations and services considered when undertaking marketing and management duties.

This ensures provision of service based on the company’s vision. Companies within Fitness industry sell similar products and services leading to shift within total supply curves of services. Similarity in the kind of services provided also presents a considerable challenge to business operations. However, the levels of performance have remained consistent within ‘24 Hour Fitness Worldwide’ boundaries of operations.

The existing nature of competition has contributed towards high demand for services hence calling for high levels of maintenance for the purposes of increasing market share. At the same time, it is important for business entity to recognize some of the crucial elements of marketing mix such as promotion which ensures organization’s survival within such competitive markets (24 Hour Fitness 2012).

It is important to establish efficient trends based on consumer buying patterns and their psychological patterns. Delivery of efficient services calls for keen choice on relevant services capable of full satisfaction on consumer needs within company’s premises. Mitigation of the risk on consumer responses requires that the company invests in consumer behaviour research which enables retrieval of extensive data on consumer spending patterns.

Management decisions are required in the process of establishing strong base within international market. This is since various regions have some dominating factors which might affect smooth operation of the business. These include political instability and legislative requirements within some countries. The company should strive to identify various areas where they perform best and capitalize on opportunities present.

Service branding appears to be a very important factor owing to the fact that consumers normally make their judgment based on their past experiences and at times referrals. In such cases, management of 24 Hour Fitness Worldwide should ensure that their services are attractive and effective.

Such strategy targets increase in the number of customers, and enhancement of their loyalty to the company. The main focus is retention of clients both within the region and beyond hence consistent increase in market share for company’s services. Capturing attention of potential consumers should remain prime focus of the company.

The company’s portfolio processes should at the same time focus on offering wide variety of services with based on different marketing considerations. However, not all services are given same approach, since the company serves such a diverse population comprising of people from different backgrounds.


24 Hour Fitness financial strategies for new ventures should be addressed based on major contribution towards company’s objectives. Performance on various services and acquisitions should contribute towards provision of consumer services. Quality services are offered at affordable prices hence a priority for the management team.

CASH FLOW Pre start up ($) Q1 ($) Q2 Q3 Q4
Income 59000 59400 59400 59400
VAT on sales of services 8787 8847 8847 8847
Consumables 8916 8916 8916 8916
VAT on sales 1328 1328 1328 1328
Equipments Purchased 7,000 6000 6000 6000 6000
Consumables purchased 3,000 4000 4000 4000 4000
Revenue overheads
Rent 6000 6000 6000 6000 6000
Rates 5000 5000 5000
Heat & light 1,600 4800 4800 4800 4800
Staff wages 22680 22680 22680 22680
Social security 2520 2520 2520 2520
Telephones etc 1200 1200 1200 1200
Marketing materials 6000 6000
VAT on revenue purchases (estimate) 175 700 700 700 700
Capital overheads
Refurbishment 5,000
Equipments 15,000
Computers 6,000
Furniture 5,000
VAT on capital purchases (estimate) 5,425
Cash flow summary
Operating income cash flow 0 67916 68316 68316 68316
Services 10,000 10000 10000 10000 10000
Summary of all overheads 49,600 37200 42200 37200 48200
VAT paid (income less purchases) -5,600 9415 9475 9475 9475
Net operating cash flow -54,000 11301 6641 11641 641
Borrowing loan injection 30,000
Interest on loan borrowed 750 750 750 750
Cumulative cash flow -24,000 -13449 -7558 3333 3225


The company controls its business operations based on the nature of attention granted given to customers. The designed used for various clubs and centers provided for limited provisions since it could only accommodate limited number of customers. This would ensure that 24 Hour Fitness company benefits from high revenue returns from variety of services rendered.

However, due to the nature of competition within the Fitness industry, 24 Hour Fitness Company should focus on providing superior and quality services. This would ensure high performance within the corporate culture instituted by the management. At the same time, marketing within such industry requires application of modern technology which ensures that majority of consumers are reached within the target markets and their needs fully met.

There is need for improvement within service delivery system applied by 24 Hour Fitness Worldwide. This should be done to enable enhancement of company’s image within the various market segments. It is important for companies within fitness industry to focus on valuable drivers with the ability of providing efficiency as per consumer expectations.

Within the same line, conducting frequent market surveys ensures that the company’s provisions are capable of handling current consumer needs within the market. Such surveys should include various methods of evaluation applicable during analysis and implementation period. Despite such processes as discusses careful analysis should always be done based on customer metrics such as nature of quality time required (Barney, 2007).


24 Hour Fitness. (2012). Company Overview. Retrieved 12th March 2013 from 24Hourfitness.com

Barney, J., B. (2007). Gaining and sustaining competitive advantage. (3rd ed.). Pearson Prentice Hall: Upper Saddle River

Mintzberg, H., Ghoshal, S., Lampel, J., & Quinn, J. B. (2003). The strategy process: Concepts, contexts, cases.(4th ed.). Prentice Hall

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"24 Hour Fitness Worldwide Inc. Implementation Plan." IvyPanda, 12 Mar. 2020, ivypanda.com/essays/24-hour-fitness-worldwide-inc-implementation-plan/.

1. IvyPanda. "24 Hour Fitness Worldwide Inc. Implementation Plan." March 12, 2020. https://ivypanda.com/essays/24-hour-fitness-worldwide-inc-implementation-plan/.


IvyPanda. "24 Hour Fitness Worldwide Inc. Implementation Plan." March 12, 2020. https://ivypanda.com/essays/24-hour-fitness-worldwide-inc-implementation-plan/.


IvyPanda. 2020. "24 Hour Fitness Worldwide Inc. Implementation Plan." March 12, 2020. https://ivypanda.com/essays/24-hour-fitness-worldwide-inc-implementation-plan/.


IvyPanda. (2020) '24 Hour Fitness Worldwide Inc. Implementation Plan'. 12 March.

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