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Recently, there has been a huge explosion in the fitness industry and 24-hour gym business in Australia. The establishment of 24-hour gym centers has changed how Australians view the fitness industry. Clients are provided with a wider range of gym services. SWOT analysis is utilized by firms to assess how their business models could make them achieve excellent performance outcomes (Jackson, Joshi, and Erhardt 820). This paper gives an overview of the gym business concerning Anytime Fitness and Jetts. The paper also analyses the business models of the two firms to determine the firm with a better business model. Also, it offers a conclusion based on the findings presented in the paper.
Case study overview
People use fitness centers to exercise their bodies. There has been a general increase in the demand for gym facilities in Australia because people believe that frequent exercises could improve their quality of life. Research has also shown that some forms of body exercise could prevent the onset of such health conditions as heart problems and high blood pressure. Due to the high demand for 24-hour gyms, entrepreneurs are faced with stiff competition to meet the needs of the people.
Anytime Fitness is characterized by a large market share and stiff competition against its business rivals. Therefore, no other club can do any operation in the area where the business operates. Jetts was started in 2007 by Brendon and Christy. It started as a no-contact 24-hours club.
Critical Analysis Using Business Concepts
Jetts’ chain has transformed the fitness business with the club model. It has adopted a franchising model, which allows it to engage other firms to offer gym services on its behalf. This approach has enabled the firm to record very good financial results over the years. However, the business establishment conducts a thorough analysis before it contracts with another firm to offer gym services. For example, it checks the financial background of the franchise (Heathcote par. 8).
The management also assesses the facilities that franchises could have for exemplary fitness services. The firm has a wide range of such equipment as bikes, treadmills, individual TV screens, and trainers. The wide range of equipment ensures that customers with different needs are attracted to the business. This is probably one of the strengths of the business that has enabled it to grow (Jackson et al. 821).
Jetts has low-cost membership that does not have locked-in contracts. Many clubs run on small group training sessions plus one-on-one training (Heathcote par. 1). The main weakness of Jetts is a lack of concentration on a certain market segment. Market segmentation is a crucial market strategy that enables businesses to focus on a particular market segment for their growth and profitability (Heathcote par. 3; Jackson et al. 825).
Anytime Fitness was among the first firms to provide gym services 24 hours a day. The business model provided the business establishment with an excellent growth avenue that enabled it to increase its income significantly. However, the main weakness of the organization is that it is characterized by poor bookkeeping. Anytime Fitness has excellent facilities that attract many customers to its clubs in Australia.
Also, the clientele base has been established based on the strong customer relationship the firm has with its customers (Heathcote par. 10). This is an important aspect of the business because it has resulted in many referrals (Jackson et al. 815). The main opportunity for Jetts is the international market, while the opportunity for Anytime Fitness is capitalizing on the Australian market to attract a good number of customers.
The main threat of the two organizations is stiff competition from other businesses in the fitness industry (Jackson et al. 816). For the two firms to survive in a competitive business world, they have to implement strategic marketing approaches that will make them continue recording good performance results and gaining market shares (Jackson et al. 825).
The 24-hour fitness business model is expanding rapidly in Australia. As a result, many gym businesses are adopting a 24-hour operation approach. Based on the above analysis, Jetts has a better business model, and it has the potential to expand its operations to international markets. However, the firm will need to conduct a thorough market study analysis before it can venture into foreign markets. Failure to do so may result in huge financial losses. In conclusion, the firms have the potential to expand in Australia based on the strategic growth approaches that they implement.
Heathcote, Andrew. 2013. Top 3 Fast Franchises: Laser Clinics Australia, Jetts Fitness, Anytime Fitness. 2013. Web.
Jackson, Susan E., Aparna Joshi, and Niclas L. Erhardt. “Recent research on team and organizational diversity: SWOT analysis and implications.” Journal of management 29.6 (2003): 801-830. Print.