Case Study of BYKlyn: Analysing External Factors and Issues in Health and Fitness Industry

The report contains the case study of the health and fitness organization, BYKlyn which is founded by Amy Gloster. The biggest problem that the organization is facing is the intense competition in the market. The purpose of the report is to analyse the external factors and the issues that the organization is facing in the market and the factors responsible for these problems. With the help of PESTLE analyses, SWOT analysis and Porter's five analysis, the main issues and the situation of the organization in the market has been analysed. The current report highlights all the issues that the organization is facing in the market along with the reasons that are responsible for these problems. It also provides appropriate solutions for the problems that are identified along with the best fit solution for the most challenging issue and recommendations that the organization can follow in order to rebuild itself and survive in the competitive market.

INDIVIDUAL CASE STUDY

EXECUTIVE SUMMARY
The report contains the case study of the health and fitness organization, BYKlyn which
is founded by Amy Gloster. The company offers its services both through online as well as walk
in studious. The industry has grown rapidly in the last few years and the problems have grown
along with it. The report starts with a brief description of the situation and the background of the
company. The biggest problem that the organization is facing is the intense competition in the
market. The purpose of the report is to analyse the external factors and the issues that the
organization is facing in the market and the factors responsible for these problems. With the help
of PESTLE analyses, SWOT analysis and Porter's five analysis, the main issues and the situation
of the organization in the market has been analysed. The current report highlights all the issues
that the organization is facing in the market along with the reasons that are responsible for these
problems. It also provides appropriate solutions for the problems that are identified along with
the best fit solution for the most challenging issue and recommendations that the organization
can follow in order to rebuild itself and survive in the competitive market.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
DESCRIPTION OF THE SITUATION..........................................................................................4
MAIN BODY...................................................................................................................................5
Problem statement and plan of analysis.......................................................................................5
Analysis and findings-.................................................................................................................8
The solutions for the problems and issues that the organization is facing in the industry. ......10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Amy Glosser is the founder and the chief executive officer of the exercise bike fitness
studio, BYKlyn, which is based in Brooklyn, US. The business was opened with adequate staff
and about thirty exercise bikes. Glosser has been innovative and therefore, the business has
evolved a lot with time. This business model is related to exercise and fitness and is based on
package system. The packages that they offer are widely used by large fitness clubs and
individuals can also attend classes in the studios.
It has a decent image in the market but it has been facing some serious problems in the
business especially after the covid- 19. one of the biggest issue is the intense competition in the
market. After the covid 19, the concern of the people towards the fitness activities increased and
hence, new fitness studios opened. The competition level can be analysed from the fact that even
the biggest giant of the industry does not cover five percent of the total market share. This has
become a serious problem as three new fitness studios have been set up just nearby the BYKlyn.
The main objective of the report is to identify the problems that the organization is facing
and the factors that are responsible for these issues. The current report identifies the resources
and techniques that can be useful to tackle the business problems with the help of appropriate
models. The report also asses the current position of the organization in the market against the
competitors with the help of various concepts, theories and models.
The purpose of the report is to analyse the issues and create ideas that can be helpful to
solve these issues. It will also recommend the limitations of the organization, planning and how
to enhance the scope of the organization in the market.
DESCRIPTION OF THE SITUATION
Amy Gloster began BYKlyn on Flatbush Avenue in Brooklyn. The entire area that was
formerly a Chinese restaurant was converted into a new exercise biker fitness centre that costed
80,000 dollars of investment for her. Gloster then opened a new business with adequate staff
including general manager as the only permanent employee and other temporary employees and
thirty bikes that completely vanished any extra space. The name BYKlyn is a combination of
bike and Brooklyn and in context of the business, Brooklyn was seen as the place full of cultures
and adult consumers that will enjoy the fitness rides.

The present situation with regard to the fitness business in the US consist of intense
competition especially after the covid phase. The people are driving towards the fitness measures
and a lot of young and adult population is concerning towards adopting and including fitness as a
permanent ingredient in their lifestyle. It is due to the fact that the immunity and the biological
ability of the people that was exposed during the covid 19.Then the need of physical fitness came
into light.
BYKlyn provides a range of services related to the fitness through online channels and
through live classes. But they are facing some serious competition in the market due to the rise of
new entrants. Apart from this, the other big problem that the organization is facing is poor
management. It has evolved consistently but poor management has been a demerit for the
organization and due to this it has the competitors get an easy space to occupy the market share.
It also becomes a competitive disadvantage as the customers tend to shift to other organizations
in a desire to acquire quality services.
MAIN BODY
Problem statement and plan of analysis.
Intense competition is the main issue that organization is facing and due to that more
challenges are emerging (Freitas and Lacerda, 2019). Each emerge issue or challenge put direct
impact on business performance and current practices that each department is conduct in
professional manner. The biggest issue that develop in the workplace of BYKLN is lack of
growth, which is important and essential for company rapid success in the competitive market,
where rivals are conducting a lot of practices to gain competitive advantages in the bulk. Second
issue that emerge due to main problem is poor brand image, that affect customer base and third
issue is lack of connectivity with buyers, which is challenging for companies during pandemic,
when their connections with target market were weak. The main reason behind current issue that
company is facing is activities that rivals are conducting to gain the desire outcomes, such as
generate revenue more than the other brands in the fitness sector.
All above three issues are interrelated with functions or functional areas available in the
BYKLN, which is essential for administration to take into their consideration, which enable
company to be competitive and profitable than the other brands existing in the fitness sector.
When competitive environment is increasing, it leads to create more challenges that affect

business performance and other activities, either functional or operational. Each issue with
functional area and techniques or models utilize to analyse that mention below;
Functional areas Problems Concepts/models to be used
Customer relation
management
The main issue due to
competitive environment in the
company, management face is
poor connectivity with buyers,
which is important for the
administration to enhance even
better than last few years or
months.
SWOT analysis is important to
use, which allow
administration including
managers and leaders to
identify what issue is and how
to resolve the same. Value
chain analysis, is also utilize in
the similar case or situation,
which allow manager to
identify what issue put direct
impact on their venture
performance and effectiveness
negatively.
Strategic management Retaining and attracting
customers & managing
organizational performance.
PESTLE analysis is another
model that will be utilized in
order to determine the issue
that strategic management is
facing, which will impact
negatively. The utilization of
this model will enable
management to identify more
challenges that they will face
further.
Accounts department Financial performance is the
main concern of chosen
department, related to which it
will face issue and tend to
SWOT analysis and PESTLE
analysis are required, in the
context of issue determination
and analysis.

overcome by applying
effective techniques.
Literature review-
There are different types of concepts, models and techniques utilized in the companies for
purpose of determining issues that a company face, and deal with that. In the view of, Djellabi
and et.al., (2021) SWOT analysis is the best strategic model, because it helps users to identify the
actual situation, competencies and effectiveness of companies, and all these informations related
to internal environment. It can be said that internal business environment analysis through
SWOT model may enable management to completely comprehend venture in effective manner
and address the key issue that affect sales, success and organizational progress negatively, which
is not suitable for a good and influencing brand image of the organizations.
Christodoulou and Cullinane, (2019) stated that SWOT analysis helps to define the actual
situation of an organization, including their strengths, weaknesses, opportunities and threats that
affect recent and further performance. However, it is not suitable and appropriate to identify the
external factors that a company have, which may also put negative impact on their performance,
if when they do not have any proper info about each factor. It can be said that PESTLE model is
quite easy to use and throughout user can understand the situation of a specific industry in which
firms are conducting their practices, by facing number of challenges and grabbing opportunities.
According to, Darabpour and et.al., (2018) the utilization of PESTLE analysis model
facilitates good comprehending of wider external business environment, with specification of
factors that impact businesses, either in negative or positive ways. It may drive the attention of
companies and their management toward conducting practices that help to handle the situation,
such as they can start thinking creatively and strategically, which is important and beneficial too
as well as helpful in varied terms.
Sui and et.al., (2021) defines that pestle models can allow companies to appropriately
anticipate in the future business threats and take strategic actions to mitigate their negative
impact upon everything, from functions to practices conduct by the skilled employees.
On the other hand, Lokesh, Ladu and Summerton, (2018) contradict that Value chain
analysis is better in case of conducting practice to identify the issues related to a company in
appropriate manner. It drives the attention of leaders and managers as well as other stakeholders

towards developing comprehending about areas of improvement and strengths that they may
utilize to overcome the negative impact of any internal issue. It enables them to quickly and
effectively reduce the cost and efforts of unnecessary things that individual person utilize in the
workplace. It is important for the management to consider essential and useful resources that
needed in the work area and also utilize to achieve the aims.
According to, Pradeep, Vadakepat and Rajasenan, (2020) value chain analysis helps to
examine business operations and also contribute to increase the operational effectiveness, even
better than last few years or months in the fitness sector, where companies attempt to grow and
succeed. It is suitable to identify the internal issue in an enterprise, because value chain analysis
help to describe the full range of activities that has been conducted in the workplace and utilize
to achieve short, medium and long term goals, appropriately, without making major or minor
mistakes. It enables companies to gain competitive advantages in the bulk, which is essential and
beneficial for them to do that, due top varied unpredictable reasons. It also helps to grow
ventures in the future.
Analysis and findings-
BYKlyn is one of the well known names in the health and fitness industry. In the recent
times it has faced a rapid decline in the business due to covid 19. There are many other issues
that the organization is facing in its run in the market that can be analysed by applying certain
models.
PESTLE analysis-
It is one of the most important theory to analyse the external situation of the market for
the organization and identify the macro environmental factors. It includes-
 Political factors- These are the political decisions and the impact of local administrative
bodies on the organization. The unstable political situation of UK has been an issue for
the organization (Simões, 2020). The political issues are uncontrollable for the
government and because of this the organization's planning has been effected.
 Economical factors- The economic situation was his in a very negative way after the
covid. This created a big issue as the walk in systems got completely closed due to lock
downs and the because the blocked income of the people, opting for the online fitness
classes was not taken on as expected.

 Social factors- It includes the societal beliefs and the social norms that influence the
businesses. The rising concerns of the people about health and fitness has been a better
external factor for the business. It was due to the consequences that were faced during
covid because of bad health and immunity.
 Technological factors- Technology is evolving very fast and the traditional classes are
getting replaced by online systems (Gupta, Gupta and Gupta, 2019). This has impacted
the organization and its strategy and forced it to install and adopt a new way of work.
 Legal factors- The legal factors includes all the law enforcements and the rules and
regulations of the business in the market. The strict laws of lock downs such as opening
the business with fifty percent capacity has impacted the revenues negatively.
 Environmental factors- The environment of the place due to corona virus has been
impacted badly. The people started to hesitate to go to outdoor places considering the fear
of virus in the open environment.
SWOT analysis-
 Strengths- It is one of the oldest organization and therefore a well recognized name in
the field of health and fitness. The founder of the company is known for changing its
policies and strategies over time that helps the organization to adapt to the ever- changing
market and trends (Christodoulou and Cullinane, 2019). It has a good reach in the market
in both the online and offline mediums and the type of packages it has offered has been
the deciding factors for its popularity.
 Weaknesses- The organization has many weaknesses such as poor management. This has
been a big issue that the organization is facing in the recent times. During and after the
covid phase, when the situation was challenging, the management system was exposed.
On of the main issue was related to the refunding of the online packages and the
maintenance and continuation of the existing packages that were stopped due to lock-
down.
 Opportunities- The concern of the people has been rising towards fitness and this is a
big opportunity for the organization to attract more audience and increase its revenue
(Benzaghta and et.al., 2021). A study showed that many people who were previously not
connected to fitness activities has been going towards the physical training. Most of these

people are millennials and the organization's policies are already towards targeting the
millennials.
 Threats- The biggest threat that the organization is facing is the competition. It is
because the market in this industry has been increasing rapidly and new centres are being
set up with better and innovative business strategies.
Porter's five forces analysis-
 Competition in the industry- The organization is facing intense competition from its
rivals. There are many new openings in the same areas (Bruijl and Gerard, 2018). Due to
this the market share has declined and the revenues have been consistently declining.
 Potential of new entrants- The new entrants use innovative technology and ideas to
serve the people. Entrants with high potential investors use pricing strategies and better
technology that influence the audience to shift.
 Power of suppliers- It includes the number of suppliers and their uniqueness against its
competitors (Wood and et.al., 2021). The fitness industry in UK has adequate suppliers
and due to the emerging technology and ideas about marketing, BYKlyn is facing
challenges in the market due to its poor management.
 Power of customers- Due to the high competition, the power of the customers has been
on the top and it becomes easy to shift to other centres in case they get better benefit.
 Threat of substitutes- The rise of new entrants created issues due to which the business
situation became more challenging as the customers have close options to the services
and any edge of benefit makes the customers shift from one brand to another.
The solutions for the problems and issues that the organization is facing in the industry.
The set of problems that the organization is facing are mostly after the covid phase. The
solutions that may be proposed to BYKlyn regarding these problems are-
 The company can adapt to more digital mediums of interaction. It may enhance its online
channels and policies. The new entrants focus on innovative solutions and technology
becomes a aspect for them (Abd Elaziz and et.al., 2020). The organization may use this
advancement and use it for its marketing campaigns where it may demonstrate the benefit
of online fitness classes and how it will save the time of the people. This is very
beneficial as a lot of people usually don't want travel and go to crowded places to avoid

virus. This will allow them to gain services directly and live from home. This process is
quite convenient for the people who have busy schedule.
 The organization is facing strong challenge from the competitors in the market. The best
way to survive in the competitive market is using the price strategy. It may lower its
online subscription charges and also special price benefits for its long- term customers.
The organization can use strategies such as referral bonus and special discounts for the
new joining. These centred techniques and highlighting this in the marketing campaigns
can be quite helpful in attracting new audience.
 One of the biggest problems that the organization is facing the poor management.
BYKlyn may enhance the management system by identifying the loopholes in the
management process such as package policies and refunds and optimize the system to
provide convenient services to the customers and maintain a positive relation with them.
Best fit solution
The biggest issue that the organization is facing is intense competition in the market. For
the purpose of solving things, the price policy can be the best suited as the people tend to be
attracted to things that cost less or have higher levels of benefits at the same time (Evans and
et.al., 2020). The organization can reduce the cost as the strategy without reducing the services
and the quality. It can provide higher benefits with zero additional cost and this can also create a
positive influence on the minds of the customers. It may also launch premium subscription where
the people get special services and if the price loyalty is maintained, it will initially improve their
customer retention. The pricing and offers need to be updated and innovated frequently so that
the competitors are not able to effect or copy things as this will negotiate their brand policy.
Providing better services at low cost also enhances brand value and trust.
Recommendations-
 The company may look at the government policies and grants related to the procurement
of the losses that the businesses faced due to the covid 19 and lock downs. This can give
some sort of relief for the organization to overcome its financial losses as these grants
have little to pay off in interest.
 The experts in the organization needs to analyse the market trend and the behaviour of
the competitors and the customers and figure out the reasons that they tend to shift to new
centres (Abd Elaziz and et.al., 2020). This will enable them to identify the areas of

improvement and the innovations that it can adopt. It is always important to analyse the
capability of the competitors and the scope in the future.
 It may look for new opportunities in the future and target new segment of the audience
apart from the millennials and also develop its reach to new market where the
comparative competition is less and expand its business.
CONCLUSION
From the above report, it has been concluded that the health and fitness industry is one of
the fastest growing industries in the world. The rapid growth is due to the rising concern of the
people towards fitness activities and therefore, businesses tend to grow in the field. The high
level of competition is the biggest issue that the organization face and the evolutions that the new
entrants come with creates challenges for the businesses. There are theories that are used to
analyse the situation such as PESTLE, SWOT etc. It is also concluded that continuous
enhancement and analysis of the market is the key to survive successfully in the competitive
market.

REFERENCES
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