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Environmental Analysis and Industry Analysis sample essay

Rivalry will exist among Lady Ath-Elite but the intensity will not be great. There are several gyms in Huntsville, Alabama; the largest gyms are the University Fitness Center, Gold’s Gym, Riviera Fitness Centers, Bender’s Gym, Curves, Empire Fitness, and the new YMCA in Madison, Alabama (Yellowpages.com, 2012). Riviera Fitness Center will offer competition because one of its two branches, like Lady Ath-Elite is for women only. There are also the following gyms for women: Real Life Fitness for Women, and as previously-mentioned, Curves. However, those gyms are not quite as large as Riviera Fitness, which has four locations in the Huntsville area alone (Rivierafitnesscenters.com, 2011). Bender’s Gym will offer competition because one of its two local branches houses the Parisi Speed School, which is a training facility for aspiring athletes. Of course, some gyms, like Bender’s Gym and Gold’s Gym have the advantage of being open for twenty-four hours, which is a service that Lady Ath-Elite will not offer.

However, the Parisi Speed School, which is a part of Bender’s Gym, is not open twenty-fours – only the actual gym (Bendersgym.com, 2012). Still, despite the luxuries offered by the aforementioned fitness centers, Lady Ath-Elite will be the only gym of its kind designated for women. There will be no other gym that will employ trainers who will guide and coach aspiring female athletes toward achieving their goals. The bargaining power of buyers will still be relatively high, since, like most other gyms, we will rely on membership to generate most of our revenue. Also, even though Lady Ath-Elite will be unique compared to most other gyms, consumers will likely want to be sure they are functioning within their budgets, even if it means sacrificing the one-on-one attention that the trainers of Lady Ath-Elite can offer. For example, Riviera Fitness Center offers a plan of $19 a month to employees of certain organizations, like public school employees.

This might be feasible, since Riviera has a large membership and many branches (Rivierafitnesscenters.com, 2011). So we must strive to be competitive but also generate enough revenue to cover expenses and take care of debt. The bargaining power of suppliers is relatively low when compared with that of buyers. Lady Ath-Elite will need to purchase or lease equipment of good quality, built to last. The company will strive to offer the newest, most advanced and effective equipment in the market.

However, there are still many suppliers to choose from, and the company will shop around for the best deal. Lady Ath-Elite is starting small, with just one location. There are gyms with several branches that may attempt to monopolize by acquiring all small gyms. Lady Ath-Elite may have low exit barriers if its membership doesn’t increase within a certain amount of time. The company will have work diligently to advertise and appeal to its target population – young, active, female athletes.

References
Rivierafitness.com. Riviera Fitness Centers, 2010-2011. Retrieved from http://www.rivierafitnesscenters.com/. Simpson, Nathan, 2012. Bendersgym.com. Retrieved from http://bendersgym.com/. Yellowpages.com. YP Intellectual Property, LLC, 2012. Retrieved from http://www. yellowpages.com/.

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