Byklyn: Pivoting during the COVID-19 pandemic - Case Study Analysis
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This case study analyzes the impact of COVID-19 pandemic on health and fitness industry with a focus on Byklyn exercise bike fitness studio. It discusses the challenges faced by the studio and proposed solutions to the problem.
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Integrated Case Study (Byklyn: Pivoting during the COVID-19 pandemic)
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Executive Summary The present case study is about Byklyn exercise bike fitness studio that offers health and fitness related services to the customers. However, the respective entity is facing numerous issues due to the impact of COVID-19 pandemic over health & fitness industry. It is analyzed that COVID-19 affected the health and fitness industry profoundly as people are likely to afraid to visit to gyms and other fitness centers. The lockdown caused ample of issues for the selected company in terms of minimizing their overall sales & revenue along with the number of clients. Now, the owner of the respective company, Glosser is planning to adopt virtual classes, reducing capacity and starting outdoor activities in order to manage the business in post-pandemic environment.
Table of Contents Introduction.................................................................................................................................................4 Statement of the problem.........................................................................................................................4 Research aims and objectives..................................................................................................................4 Case Brief: Description of the situation.......................................................................................................5 Problem statement, plan of analysis:...........................................................................................................6 Analysis and Findings:................................................................................................................................8 Proposed solutions to the problem:............................................................................................................10 Recommendations.................................................................................................................................10 Limitations of the study.........................................................................................................................10 Scope for further research......................................................................................................................10 References.................................................................................................................................................11
Introduction Statement of the problem COVID-19 has been created issues for all the business entities as it caused lockdown to several countries so that it was restricted for the people for step out their place. In this situation, it was quite complex for the business owners to keep the business running in absence of adequate number of customers. As a result, the organization witness consistent decline in the existing sales and revenue. Health and fitness industry can be understood as one of the majorly affected industry due to the COVID-19 pandemic globally(Nah and Siau, 2020). The present report is based onByklyn exercise bike fitness studiothat was temporally closed due to the COVID-19 pandemic. The closure affected sales and revenue of the respective studio in profound manner. The present project is based on the issues that were being faced by the respective entity due to pandemic. Research aims and objectives Research Aim: “To analyze the impact of COVID-19 pandemic on health and fitness industry. A study on Byklyn exercise bike fitness studio. Research objectives: To analyze impact of COVID-19 on health and fitness industry. To identify the challenges faced by Byklyn excerise bike fitness studio due to the COVID-19 pandemic. Structure of the rest of the report The current project is based on how pandemic affected health and fitness industry. It is analyzed that pandemic imposed lockdown in different cities globally. During such time, people were not allowed to come out from their place to control the transmission of virus. In this situation, it was quite complex for health and fitness companies to maintain pre-defined level of profit. In present case study, Byklyn exercise bike fitness studio also faced issue in terms of lack
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of visitors within the studio. The present project report will include description of the situation, plan of analysis, assessment of the current situations being faced by the company, solution to the problem along with limitation of the study, scope for further research and more. Case Brief: Description of the situation In the given case, it is stated that health and fitness industry got affected by the COVID-19 pandemic significantly. Before COVID-19, it was consider wise to do exercise but after the pandemic risk of getting infection was really high in the fitness centers due to huge public gathering at a place and sharing of same equipments(Ananthakrishnan, Chen and Susarla, 2020). After imposing lockdown across the nation, ample of fitness centers started to run online classes. They started to give virtual sessions so that people do not need to interact with each-other physically. In this situation, some fitness centers used to perform well in terms of virtual setting as they are likely to practice virtual classes for longer time. But, certain centers are still struggling to operate online classes(Grout and Leggat, 2021). In the give case, there is description regarding Byklyn exercise bike fitness studio that is run by a female owner named as Glosser who is worried due to the negative impacts of the pandemic over the studio. The respective studio was started in the year of 2014 by converting the space of a former Chinese restaurant in fitness center.Glosser was good at marketing and branding hence she combined two names bike and Brooklyn to construct the name of her new fitness center, Byklyn. Further, she hired ample number of staff such as general manager, master instructor, bookkeeper and more to run the business in an efficient manner(Nah and Siau, 2020). Due to the lockdown, she has to impose temporally closure on the studio but as the situation is normalizing she is looking forward for different options in order to open the studio again. For this purpose, she has been identified for different options such as arranging virtual classes, reducing the capacity, setting the studio at some outdoor location far away from Byklyn. There is also last option of closing the business. However, the business owner is not in the favor of closing the business. Each option has its own advantages and disadvantages in respect of the studio. In order to run the business during pandemic, she used to offer ample of benefits and promotional offers to clients. For this purpose, she reduced down the membership price so that clients get attracted. Therefore, she
started to implement different options such as virtual classes, setting business at outdoor environment, reducing capacity and more to keep the business running and earning significant amount of profit. Problem statement, plan of analysis: COVID-19 caused issues for the business organizations across the world. It imposed lockdown so that customers were not able to step out from their place to purchase the products. Due to this, it was quite complex for the business entities to maintain significant amount of profit. Further, it caused restrictions on movement of individuals, public gathering and more (Nundy and et. al., 2021). Further, government also instructed fitness centers, hotels, restaurants, pubs, resorts and more to close on temporally basis. It caused huge losses to such entities as they were not able to earn necessary revenue even to meet with their day to day expenses. In present context, it is analyzed that health and fitness industry is growing for some past years due to three main reasons; firstly, public health related initiatives are being taken by organizations(Nundy and et. al., 2021). Secondly, there is increase of per capital disposable income of households within United Stated of America. Thirdly, the number of adults which are more concern about the health has been increased from 211 million in 2014 to 214 million in 2019. In terms of impact of COVID-19, workout and gyming was considered a good practice as it is important to keep a person healthy and fit. But, now, people are likely to avoid visit gym and fitness centers as there is high probability of getting infection(Cheung and et. al., 2021). The risk of getting infected is perceives high in fitness centers as majority of the individuals are likely to share similar equipments. After imposing the lockdown, most of the fitness centers started to operate their center online through videoconferencing, Zoom and other such platforms like Face book, YouTube, Instagram and more. However, certain fitness center owners were not likely to have sufficient knowledge in order to operate fitness classes virtually. During the lockdown, people become conscious about their health hence, they start to keep track on their physical activities by using various fitness apps. For this purpose, they started to download apps from Google play stores and Apple Inc’s app store(Zhang and Hayashi, 2020). However, many fitness companies also launched their own fitness apps and online services to deliver exercise and workout plans through online mediums. Further, they also started to provide
remote guidance and supervision which hamper the customer and owner relationship within the fitness club industry. Due to increasing trend of virtual & online classes, it was quite complex for the business owners of fitness centers to maintain personal interaction with their clients which is hampering their ability to maintain long-term relationships with the clients profoundly(Khalid, Okafor and Burzynska, 2021). In context of Byklyn exercise bike fitness studio, they also faced numerous issues due to the sudden outbreak. Due to the lockdown, people were not able to join their studio physically. For this purpose, they have to close their activities on temporally basis that will further hamper their existing level of sales and profit margin significantly(Vrontis and et. al., 2021). This business was started by a female owner names as Glosser with limited amount of personal capital. She employed adequate number of staff to get assistance in terms of operating the business in an efficient manner. The lady has been planned to expand their business to leverage consistent annual growth. But, COVID-19 pandemic fail her plan as now, it was even difficult to manage the existing business. In early 2020, a promotional event was planned by Glosser names “ March Challenge”. In this challenge, twenty rides need to be completed in thirty one days. Seventy clients of the studio have been registered for the event. Suddenly, Glosser came to know about the upcoming pandemic and she started to prepare for the worst on the basis of available information. She initiated sanitization for the entire studio and started to follow other safety measures. In march 2020, there was order to shut all non-essential business including fitness centers to control the transmission of deadly virus. As a result, Glosser also had to close down her business temporally to contribute in controlling the transmission of deadly virus. She urged to the clients to continue with their membership(Galanakis and et. al., 2021). For the period of lockdown, she announced a special discount where unlimited visit price drop from $189 per month to $89 per month. Further, she also started to offer discount in terms of extra month of low pricing on paying every month membership fees. The main idea behind adopting the new promotional and discounted pricing strategy is to maintain steady cash flow in the business to fulfill day to day expenses(Khalid, Okafor and Burzynska, 2021). Therefore, it was quite difficult for Glosser to manage pre-defined level of sales and profit margin during the pandemic time. Although she was planning for expansion but she has to struggle even to earn adequate cash flow to fulfill daily expenses. During tough time, she put utmost efforts to keep the business running and managing necessary cash flow to pay fulltime payment to her staff members.
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Dealing with the impact of COVID-19 pandemic was not easy for the respective company as it hampered their existing operations, revenue and profit margin as Glosser need to offer promotion and discounted price to the customers to keep the business running during COVID-19 pandemic. Analysis and Findings: Byklyn is fitness bike exercise studio that is offers ample of fitness related facilities to the individuals. This business was started by a female owner names as Glosser with limited amount of personal capital. She employed adequate number of staff to get assistance in terms of operating the business in an efficient manner(Yu, Park and Hyun, 2021). The lady has been plannedtoexpandtheirbusinesstoleverageconsistentannualgrowth.But,COVID-19 pandemic fail her plan as now, it was even difficult to manage the existing business. It is analyzed that the pandemic affected health and fitness industry profoundly(Pikoos and et. al., 2020). Government placed restrictions and closure on operation on fitness centers along with other hospitality organizations. This directly affected the revenue of health and fitness based entities. Before COVID-19, it was consider wise to do exercise but after the pandemic risk of getting infection was really high in the fitness centers due to huge public gathering at a place and sharing of same equipments. After imposing lockdown across the nation, ample of fitness centers started to run online classes. They started to give virtual sessions so that people do not need to interact with each-other physically(Galanakis and et. al., 2021). In this situation, some fitness centers used to perform well in terms of virtual setting as they are likely to practice virtual classes for longer time. But, certain centers are still struggling to operate online classes. During the COVID-19 pandemic, it was complex for Byklyn to maintain their existing level of revenue and profit. It is analyzed that Glosser, the owner of Byklyn, exercise bike fitness center was really good at marketing and promotion of the products. Although, there is extreme competition within the health and fitness industry of the respective country but she manages to earn significant amount of profit by maintaining differentiation(Goswami and Chouhan, 2021). For this purpose, Glosser likely to run ample of promotional activities like offering membership, discounts and more. In order to sustain in the competitive environment for longer duration, she is likely to adopt numerous promotional offers. These offers are also helpful in maintaining long- term relationships with clients. During the COVID-19 pandemic, it was difficult for the
respective entity to maintain their operations as earlier due to ample of restrictions(Japutra and Situmorang, 2021). After planning the expansion, Glosser has to change her plan as she could not expand business in such uncertain time. Therefore, she decided to run a promotional plan where she used to offer ample of promotional discounts over membership so that more and more people get ready to become the member of the fitness center. Further, she put significant efforts in order to retain the existing clients within the company. For this purpose, she used to provide discounts and other such benefits so that existing clients stay within the entity. In this regard, Glosser reduced down the cost of membership card significantly(Prasad and et. al., 2020). Further, she also find out another options to manage the profit of business. Additionally, she got advantage of a scheme run by the government authorities for helping small business units to cope up with negative impacts of COVID-19 pandemic. Here, government used to offer help in form of grants and subsidies to small businesses. In this light, Glosser applied to receive necessary support for business rent, utensils, payroll and more(Ho, 2020). Here, she was looking forward to get federal administered business loan of 47000 $ with an aim to cover wages of employees for nearly eight weeks. Here, the name of program was Paycheck Protection Program which was started by the government to help the business entities to reopen their business. As the situation going normalize, Byklyn needs to open the business with less capacity. Now, they need to run fitness center as per the guidelines of government. Also, there is requirement to take care of hygine and sanitization properly which will incur additional cost for the respective entity. Further, Glosser started to use virtual platform in terms of providing fitness instructions to clients. Also, she found that using virtual platforms were more convenient and feasible for both business owners as well as fitness clients(Japutra and Situmorang, 2021). However, the impact of COVID-19 pandemic has been reduced down to a minimum level but still people are not having completely positive attitude towards working out in fitness centers. This will might affect future progress and expansion of the respective fitness studio. Proposed solutions to the problem: Recommendations(500) After going through with above-mentioned information, it is found that the respective company is facing numerous issues due to the adverse impact of COVID-19 pandemic. Here,
pandemic is affecting sales, revenue as well as customer relationships of the entity profoundly. Withanaimtorunthebusinessconsistently,thereisrequirementtofollowsuitable recommendations which are mentioned as under: It is suggested that the Byklyn needs to do planning in order to deal with uncertain situationsinbettermanner.Forthispurpose,theyneedtoevaluatethefuture circumstances and structure suitable strategies accordingly. Here, planning is useful in terms of minimizing the future uncertainties so that the company can easily deal with sudden impacts of unprecedented events. This will help in covering up the additional expenses occur while facing the impacts of uncertain events like COVID-19 pandemic. There is requirement to maintain proper communication with team members by following suitable tools like emails, videoconferencing, virtual meetings and more. It is important to keep the employees familiar about the current situation of the company so that they cancontributeintermsofimprovingtheperformanceoftherespectiveentity significantly. After COVID-19 pandemic, virtual platforms have gained popularity. Now, fitness industry is highly depended on virtual platforms due to shift in customer trends. Rather visiting to fitness centers, now people are likely to exercise at their own place with the help of mentors and online apps(Savage and et. al., 2020). By following this trend, the respective fitness studio also needs to follow virtual and online practices where they can easily interact with clients. For this purpose, they need to hire fitness coach who can handle multiple clients through virtual platforms. Along with this, they can also launch their own application where they will provide fitness related tips to the clients. This will help them in stay connected with the customers to maintain strong relation. COVID-19 affected the bond between fitness centers and their clients as majority of the people have been shifted towards online platforms. In this situation, maintaining regular interaction is really important(Alam and Abdurraheem, 2021). For this purpose, the respective entity needs to follow necessary online tools and platforms in order to stay connected with their clients. Here, they need to take the feedbacks and suggestions of the clients and need to work on such suggestions to improve overall customer experience. This will strengthen their bond with clients and help in retaining the clients for longer duration.
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Post COVID-19, people are in panic to visit to public places with huge public gathering (Dunton and et. al., 2020). In this situation, Byklyn needs to make people aware that they are following all the necessary guidelines and measured of government to provide safe and protective environment to their clients. For this purpose, they need to maintain transparency in order to gain trust of their clients in significant manner. Limitations of the study In the study, there is lack of resources in terms of funds and other equipments that might affect the overall outcomes of the project. Further, the entire project has been completed based on theoretical background. It is based on qualitative study where main focus is on developing in- depth and detailed knowledge about the topic. Therefore, there is lack of objectivity in the current project that might affect authenticity of the results of the study. Scope for further research There is also scope for conducting future research in terms of developing significant knowledge base regarding the topic. The current project is based on impacts of COVID-19 pandemic on health and fitness industry. It is a broad topic as the pandemic has affected ample of business organizations worldwide. Conducting research in future will prove useful in terms of developing significant amount of knowledge & information regarding the topic to undertake suitable steps for further betterment.
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