ABC Fitness Club: Online Fitness Service Business Idea

This report is completely focused on the proposal of providing fitness service which will be delivered with the help of online platform. It is also focusing on the external environment related to the health fitness situation of the Singapore through PESTEL. This report also focuses on the industry analysis related to fitness.

Running Head: THE ENTREPRENEURSHIP
ABC fitness club
The Entrepreneurship
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Executive Summary
Present world is full of passion and health conscious but their busy schedule is not permitting
them to have a control on their fitness. This report is completely focused on the proposal of
providing fitness service which will be delivered with the help of online platform. This platform
will not only save the timing but it will also help in forming cost efficiency. It is also focusing on
the external environment related to the health fitness situation of the Singapore through PESTEL.
This report also focuses on the industry analysis related to fitness. It is also covering the five
competitive force acting on this zone and how to deal with these forces. Then this report is
focusing on the financial feasibility related to online fitness service business idea.

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Table of Contents
External environmental analysis..................................................................................................................3
Industry Analysis.........................................................................................................................................4
Five force model......................................................................................................................................5
Marketing mix (4 P`s)..............................................................................................................................6
Key people and skills...................................................................................................................................7
Financial feasibility.....................................................................................................................................8
Conclusion…………………………………………………………………………………………………………………………………………….9

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External environmental analysis
As it is known that current population of Singapore is almost 5.61 million among which fitness
lover carry almost 42% of the population in 2011 and this percentage has increased very faster in
2017. Almost 72% of current population is now in favor of fitness directly or indirectly.
(National fitness participation survey 2011)
This data is clear indication of current trend which are demanding a healthy and fit life in this
busy world. As per study it has been found that the fitness market in Singapore is rising very fast
and it has also found that current market for fitness industry is almost US $ 19 million. These
data’s are also indicating that half of the Singapore population has actually changed their life
style as compared to previous one where around 20% of population was in favor of health related
activities. Working professionals of this nation are always in try to act as a role model for rest of
the world by participating more and more in fitness related activities through their fabulous
entrepreneurship with the help of technology support.
Political: For any business idea one of the most important needs is having a stable political
condition and especially when the politics of country revolve around the fitness, then it seems to
government is truly focusing on fitness of their citizens by motivating people to visit parks and
grounds, which is a great opportunity for ABC fitness club to flourish their business operation
(Henderson, 2013).
Economical: Currently Singapore has current GDP of almost US $ 349 billion in which 26.6%
comes from industry and 73.4 % comes from services. As per study the percentage of amount

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spending on fitness purpose are increasing day by day. Hence there will be no issue in
segregating target audience for ABC fitness club due to stability in their income source.
Social: The current population of Singapore is actually the mixed one which comprises of people
from all cultures but one thing which connects them all in one box is their responsibility for the
society. This provides a better opportunity for ABC fitness club because idea is connects with the
health benefit of the citizens.
Technology: Technology advancement is one of the important aspects in the development of the
Singapore and is being support by all the members of the society especially when it is connected
with the health benefit. Being an online fitness service provider, the ABC fitness club will be
able to mark their presence in the market.
Environmental: Currently Singapore is one of the country in the world which is motivating the
other countries to go for green technology by sharing their green technology in the form of joint
operation for the global environmental safety (Xue, Shen and Ren, 2010). Being an online
fitness service the ABC fitness is already in the support of environment care policy.
Legal: Singapore government has formed very strict laws related to quality and experience of
material as well as for fitness services provider in order to keep people safe by not involving
them with in experience fitness clubs. Here, ABC fitness club can create their image by offering
experience fitness services along with government certified certificates.
Industry Analysis
Fitness industry has very bright future in Singapore as government is also helping this industry in
order to maintain a fit and healthy life for their citizens. As per study the fitness industry has an
annual volume of US$ 19 million which is becomes one of the main reasons to choose this
industry for business purpose for ABC fitness club (Statistic, 2018). Though there are many
clubs like sport Singapore, Singapore recreation, netball Singapore, Singapore turf club etc
which are in the same business and also serve almost related offerings of health and fit life to the
population of Singapore. Hence entering in this business line will be very challenging task and
will require a unique strategy in order to form a strong customer base (George and Whitehouse,

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2011). The challenges can be of many types like already established competitors, technology and
presence of competitor services.
Five force model
The company while entering in this market will have to face five competitive forces in the form
of competitive rivals which are already existing clubs in this business (E. Dobbs, 2014). Another
competitive force will be the negotiation from the buyer end means the price manipulation from
customer’s ends in order to use this service. Another competitive force will be the negotiation
from the supplier end means the price manipulation by technology providers in order to associate
with this company. The company will also face competitive force if someone will copy their
strategy and can become a new threat by entering in the same business (Indiatsy, Mwangi,
Mandere, Bichanga and George, 2014). Last threat in this competitive force will be from the
clubs which are providing sports related service to this Singapore population.
Supplier power
Threat from
new entry
Buyer power
Competitive
rival
Threat of
substitution

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Segmentation
Singapore population is full of professional employees and owners who are very busy in their
personal life due to this dynamic business world (Wu and Chou, 2011). These working
professionals almost cover more than 50% of the population. One of the best ways to have a
strong customer base is to find out exact target segment. For this market segmentation is the best
way to create a strong customer base.
Target market
Hence the ABC fitness club will try to target this market segment in order to position their self in
present fitness industry. From these working professionals the company will mainly target those
audiences which are above 40 years by offering them online fitness services due to their busy
schedule. This online service will act as the USP for the ABC fitness club in order to create a
special place in this already existing market (Chan, 2008). It has been seen that many of fitness
club are offering good quality service along with lot of discounts in order to catch the potential
customers. By offering online fitness services the company will be able to solve the problem of
time management in this busy world.
Competition
The possible competition for this business idea will not be only those who are in the business of
offering similar kind of services like gym, yoga classes and gymnastics but also those who are
providing fitness related applications. No doubt fitness related applications have really captured
some portion of the fitness market but still people do not trust them totally, even though they are
successful in capturing some portion which has resulted in lower down of the profit percentage
sharing among the competitors. Hence it will not be easy to enter in this kind of market and have
to face many challenges related to the sustainability of the operation.

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Key people and skills
ABC fitness club will form a group of people who are truly dedicated towards doing something
better for the society. ABC fitness club will be in need of people who are highly motivated
having ample knowledge of changing technology (Waring, 2008). The club is also in need of
professional fitness trainers, dietitians, yoga master because in today busy world the need of
yoga has increase due to high pressure and tension in jobs which has actually forced the
professional people to get habitats to things like alcohol and smoke which is the main cause of
many health problems like asthma, cancer and the long sitting in office hours has also given
problems like back pain, head ace etc. The technology people should have better knowledge of
cloud technology in order to connect all the service in full secured manner so that all the data of
the customer can be secured like name, gender, location, identity etc. This aspect is one of the
most important factors while convincing a particular person to use ABC fitness club service
because many times people have a continuous fear of leaking their data through online services.
In some cases, if the employees of the ABC fitness club will not be available, an smart auto
recorded software will be implemented with the system which will not only record the daily
actions but will also make use of previous recorded data to predict exactly the expectation of the
customer in order to keep the customer satisfied. The combination will be of people who are
experienced in technology, experienced in fitness activities like yoga, gym and related sports
activity (Hardy, O'Hara, Rogers, St George and Bauman, 2014). This team will not only include
the core team members but it will also include the entire stake holder like customers, suppliers
and people who will invest in this business idea. ABC fitness club will also include health
physician in order to provide fitness related tips like food diets, exercises etc. ABC fitness club
will also hire internal marketing consultant which will help the club in promoting the service
offering to all the target audiences and will also try to form a strong negotiator team in order to
maintain the relation of service in term of price with related to the customer as well as supplier
(Jaarsma, Dekker, Koopmans, Dijkstra and Geertzen, 2014). It has been seen that in many case
that many unique ideas which were supposed to work very impressively failed to even cover up
their target audience or it can be said that they are not able to reach to their target audience. In
this case one of the biggest reasons for failure is their promotion pattern. Even though they have
use the latest technology for their promotion but still they were not able to make out because

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they have not use the right strategy in right pattern in order to target their audience. In present
situation price negotiation act as one of the most important aspect that can help the club to create
their separate position in this world of tough competition. As there are many competitors in the
market which are in the same market and also are service on the related offering so price will act
as one of the most important aspect which will keep these audience motivating towards this
service.
Financial feasibility
Every business or start up during its initial phase is in need of some breakeven point. It is never
wise to go on investing money without calculating its breakeven point because there must be
some estimate period during which the investor must see the start of money flow coming towards
them or start of returning invested money (McGrath, 2010). Hence ABC fitness club must carry
a financial feasibility in order to understand the amount of money which is going to be invested
in the plan along with its return. It has been estimated that the invested money will have its
breakeven point in end of the one year and then after it will be in the phase of return on
investment (Linan, 2008). During its initial stage the uncertainty will always be high but as the
investment chances generates information it will become more detailed and trustworthy. In many
cases it has been seen that uncertainty can highly impact the outcome of the process, it will be
always wise if ABC fitness club will take their decision on the outcome off this analysis. ABC
fitness club must consider in mind that accuracy and reliability of financial feasibility process
will be totally based on the correctness of the information to be used in the process.
Platform Reach Frequency Budget
Socialmedia (Facebook,
twitter, Instagram,
Snapchat, You tube)
Reach has to be 80%,
of the population
Daily 4 Posts $300,000
Event
Marketing(Sponsership)
Reach has to be 50-
60%
6 Events in 6 months $200,000

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Digital Advertising
(Affiliate Marketing
80% Reach Every day, ads
posted on different
websites on the web
Commission basis, 1%
of the sale value
Newspaper 30% population Twice in a month
(Monday &
Saturday)
$8600 Per day, 17200 in
a month and SGD
103,200
Budgeted income statement for year-1
Budgeted no of customers 1000
Average no of hours per customer 365
Budgeted customer hours 365,000
Service charges per hour $ 5.00
Budgeted revenues $ 1,825,000.00
Less: Expense
Cost of service $ 36,500.00
Advertisement cost $ 109,500.00
Utilities $ 365,000.00
Salaries of staff $ 365,000.00
Other expenses $ 182,500.00
Total $ 1,058,500.00

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Profit/ Loss $ 766,500.00
The source of fund will be collected from venture capitalist because these are the people who are
ready to invest their money immediately if they find the idea feasible as compared to bank loans
which follows lot of procedures for sectioning a loan and venture capitalist will just set up some
percentage on the profit generated from this idea (Colombo and Grilli, 2010).
Conclusion
All the business is under the dynamic control of environment associated to them which has also
impacted the life of the common person. Today, situation is such that the person is not able to
even draw a line of differentiation in between their personal and professional life. In simple
terms present business situation has impacted the health of a common person by increasing
tension, a state of nervousness and lack of time management. To solve this problem ABC fitness
club will provide online fitness solution by which the common person will be able to live a
health and fit life with the help of flexible time offering along with service at home. ABC fitness
truly believes that only a sound mind can generate a sound body.

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Appendix
Nutri work out is a real life example of startup which is offering online fitness service to the
people with busy schedule with the help of technology. They mainly provide services which are
related to diet as they believe that every human body requires different pattern of nutrients as per
their body structure so they must be treated differently in the form of personal service. So that
they can believe that this service is for them only.

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