PureGym Market Capture Strategy

This assignment examines PureGym, a UK-based fitness chain offering services to diverse age groups. It delves into the company's organizational structure and systems, employing SWOT analysis and the Ansoff Matrix to develop a market capture strategy. The report aims to provide PureGym with actionable insights for successful expansion into new markets.

Running head: MANAGEMENT AND COMMUNICATION 0
Management and Communication

MANAGEMENT AND COMMUNICATION 1
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................3
Introduction of PureGym.......................................................................................................3
Task 2.........................................................................................................................................4
Organisational Structure of PureGym....................................................................................4
Task 3.........................................................................................................................................6
System Approach...................................................................................................................6
Task 4.........................................................................................................................................7
SWOT Analysis.....................................................................................................................7
Ansoff Matrix.........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

MANAGEMENT AND COMMUNICATION 2
Introduction
This report will focus on analysing the management strategy of PureGym Company. The first
part will include the introduction of the corporation and the unique characteristics that it
possesses. The second section will evaluate the organisational structure adopted by the
PureGym Company. The third section will provide a management approach which can be
implemented by the administration of PureGym Corporation. The fourth part will focus on
analysing two specific innovative strategic management objectives of the PureGym
Company, such as SWOT and Ansoff.

MANAGEMENT AND COMMUNICATION 3
Task 1
Introduction of PureGym
PureGym limited is a fitness club chain situated in the United Kingdom; the company has
gyms all across the country. With more than 450,000 members, PureGym is the largest gym
chain in the United Kingdom. Currently, the company has more than 180 gyms, and they plan
to open 300 gyms by 2020 (Kilgannon, 2017). The company has a team of dedicated staff
members, and they focus on improving the business and the development of their members.
The corporation has also won the best place to work awards in 2016. The company’s motto is
making their member’s each day memorable.
The company provides reasonable and flexible access to its members with superior quality.
The corporation also has an online membership plan through which members have to pay less
than £20 a month without filling any form. All the gyms are open for 24*7, and they are
easily accessible throughout the country (Kingsley, 2012). PureGym gained a lead in UK’s
gym industry by focusing on their customers’ demands and utilising the modern technology.
The company is changing the gym industry by introducing gyms for old peoples. Various
offers provided by the firm to its customers such as autumn offer concessional rates, giving
one-year membership at a discount rate and 20 percent of the rebate for the students’
members in the gym. The corporation also provides around 50 to 80 free fitness sessions to
its members each week by over 2000 personal trainers (Duggan, 2014). The firm is known
for their superior quality fitness equipment and the widespread free mass area in the gym.
PureGym also invests in multiple areas of fitness industry to provide a better experience to
their members.

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Task 2
Organisational Structure of PureGym
As per Fisher, Campbell and Svendsen (2012), an organisational structure describes how the
actions of a corporation including supervision, task allocation, and coordination are directed
towards the achievement of the common objective. A company divides its functional
departments to ensure the success of organisational goals. Below mention is the
organisational structure of PureGym:
Chief Executive Officer (CEO)
Humphrey Cobbold is the CEO of PureGym, and he was appointed in 2015. Cobbold
possesses significant experience in the field of fitness business which he acquires by
performing various roles such as Director of Strategic Development, Chainman or Fish4 and
many others (PureGym, 2017).
Chief Financial Officer (CFO)
Adam Bellamy is the CFO of PureGym, and he was appointed in 2012. Bellamy possesses
experience in the field of hospitality, retail business, and many others. In PureGym, the
primary focus of Bellamy is towards financial transactions, serving as a team leader, planning
development strategies and other critical actions which assist company into achieving their
organisational objectives.
Chief Operating Officer (COO)
Jacques De Bruin is appointed as the COO of PureGym in 2011. He is responsible for
managing and controlling the day to day operations in the company. As per the management
structure of PureGym, all the final approvals and permissions are collected by the chief
operating officer to CEO.
Non-Executive Director
Richard Zannino and Thomas Walker hold the position of non-executive director and their
responsibility is to make proposals for the strategies, policies, integrating financial position
and many others. Their primary focus is on the employees to direct them in achieving
organisational objectives. They assist COO in formulating future policies and goals.

MANAGEMENT AND COMMUNICATION 5
Employees
PureGym employees assist in efficiently operating the function of day to day business. The
employees are motivated and work hard to achieve estimated objectives within the stipulated
time frame. The CFO operations employees of financial department, COO maintain
operations department and non-executive directors perform various functions along with
personnel department.
Figure 1: Organisational Structure of PureGym
Board of
Directors
Chief
Executive
Officer
Chief Financial
Officer
Finance
Department
Chief
Operating
Officer
Operation
Management
Non-Executive
Directors
Personnel
Department

MANAGEMENT AND COMMUNICATION 6
Task 3
System Approach
a) The system approach of PureGym considers it as a dynamic and inter-related
arrangement of different parts; every such section is communicated with an office or
sub-framework. PureGym has allotted each part a specific sub-framework. The
efficient and continuous communication between small frameworks allows bugger
frameworks to achieve their targets. In this manner, each big structure has its smaller
sub-frameworks which perform together in a collaborative association to ensure that
common goals are achieved (PureGym, 2017).
b) PureGym analyse the market trends and update their interior and outer operational
framework because the system approach influenced by both upcoming and
inaccessible future activities. The companies maintain and dynamic and aggressive
attitude towards the market competitors.
c) The system approach of PureGym coordinates with the multiple parts of the company,
which include officers and sub-frameworks, to maintain a general association. The
corporations collaborate their goals with the objectives of society and environment in
which they operate their business. The collaboration and mixture of objectives
maintain a harmony in the organisation and it empowers the management to formulate
progressive policies in the firm (Moore, 2016).
d) PureGym integrates the knowledge of multiple fields such as science, demand
research, data framework, humanism, commercial aspects and many others. PureGym
manages a various diverse section of the society, therefore, it utilises the knowledge
from multiple fields to improve the cooperation with its partners.
e) The system approach assists in collaboration of the organisational goals of PureGym
with the social purposes. The social framework, culture, morals and social values are
a vital part of the system approach and business operations of the PureGym.

MANAGEMENT AND COMMUNICATION 7
Task 4
SWOT Analysis
Strength
PureGym focuses on the demand of its members and formulates policies according to their
desires, for example, they decide to remove the extra fat food to make it healthier. The
company also fulfills the primary demand of members that was reasonable membership fees
by proving their minimum subscription at £20 per month and removing the clause of
prescribed commitment. The procedure of joining and leaving the membership is
significantly simple which makes it easier for members to join and attend their sessions
(Sassatelli, 2010). The corporation also has a convenient process for leaving the gym
membership. They provide their members a humble, vibrant, forthright and flexible
experience.
Weakness
The major weakness of PureGym is lack of appropriate space for the member to work out.
This makes the gym equipment available only to the regular members and not for the
individuals who have joined recently. The lack of parking space is another considerable
problem in PureGym since it makes peak season an inconvenience experience for the
members. The lack of parking space wastes the time of members because they are not able to
find a parking space near the gym.
Opportunity
PureGym has the chance to expand their business outside the United Kingdom and approach
to a worldwide audience. The number of members in gyms is proliferating throughout the
world as peoples being more aware regarding their health (Anderasson and Johansson, 2014).
PureGym has enormous opportunity to expand their business worldwide and approach to a
younger audience.
Threat

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The primary risks for PureGym are increasing rate of competition in the fitness industry
(BBC, 2015). Other threats include a change in government regulations and lack of
reasonable equipment suppliers.
Ansoff Matrix
Market Penetration
PureGym can expand its business by capturing the members of other competitors, attracting
younger peoples and motivating the current members to retain their membership. The free
swimming initiative taken in the UK can assist PureGym in penetrating the market (Bolton
and Martin, 2013).
Market Development
PureGym marketing should be in new areas of operation, and company can adopt segment
strategy to develop a new market. The policy should include provision for attracting and
enhancement of PureGym’s business. The strategy can consist of a geographic area that is
still not targeted by the company. The company can adopt outreach services which can
expand the business of PureGym in low operating regions.
Product Development
The product development requires resources, identification, and advertisement of new
products to current members. Various factors influence the development of a new product
such as customer requirements, future policies, risk factors and many others (Ferrand,
Robinson and Valette-Florence, 2010). The risk factors can be reduced by conducting a
thorough customer requirement research. PureGym should focus on producing excellent
fitness and health products to attract members.
Diversification
Diversification is a significantly risky strategy which requires considerable research of both
product and market (Stern, 2008). Many corporations are introducing newer products and
services for the young members, and it is difficult for PureGym to keep up with them. The
company should establish an effective business strategy for diversification.

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Conclusion
In conclusion, PureGym is well-known fitness chain in the UK, and it offers multiple services
to both old and young members. The report focuses on organisational structure and system
approach of the company to formulate a strategy for new market capture; the SWOT and
Ansoff matrix was also explained. Further, the analysis provides a new strategy for PureGym
which they can implement in order to enter a new market by efficiently using their strengths
and abilities.

MANAGEMENT AND COMMUNICATION 10
References
Andreasson, J. and Johansson, T., 2014. The fitness revolution. Historical transformations in
the global gym and fitness culture. Sport science review, 23(3-4), pp.91-111.
BBC., Pure Gym to buy rival LA Fitness. BBC. Retrieved from <
http://www.bbc.com/news/business-32927069 >
Bolton, N. and Martin, S., 2013. The policy and politics of free swimming. International
journal of sport policy and politics, 5(3), pp.445-463.
Duggan, O., 2014. The Gym Group keen to cut pounds in growth market. Telegraph.
Retrieved from < http://www.telegraph.co.uk/finance/businessclub/11029227/The-Gym-
Group-keen-to-cut-pounds-in-growth-market.html >
Ferrand, A., Robinson, L. and Valette-Florence, P., 2010. The intention-to-repurchase
paradox: A case of the health and fitness industry. Journal of Sport Management, 24(1),
pp.83-105.
Fisher, D.R., Campbell, L.K. and Svendsen, E.S., 2012. The organisational structure of urban
environmental stewardship. Environmental Politics, 21(1), pp.26-48.
Kilgannon, L., 2017. Pure Gym To Open Site At Thorpe Park Leeds. Insider Media.
Retrieved from < https://www.insidermedia.com/insider/yorkshire/pure-gym-to-open-site-at-
thorpe-park-leeds >
Kingsley, P., 2012. Hard at it in the all-night gym. The Guardian. Retrieved from <
https://www.theguardian.com/lifeandstyle/2012/jan/29/exercise-in-all-night-gym >
Moore, J., 2016. Pure Gym pulls London float. Have low cost gyms run out of puff?.
Independent. Retrieved from < http://www.independent.co.uk/news/business/comment/pure-
gym-pulls-london-float-have-low-cost-gyms-run-out-of-puff-a7355316.html >
PureGym., 2017. About Us. PureGym. Retrieved from < https://www.puregym.com/about-
us/ >
PureGym., 2017. Leadership. PureGym. Retrieved from <
https://www.puregym.com/puregym-group/leadership/ >

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Sassatelli, R., 2010. Fitness culture. Gyms and the Commercialisation of Discipline and Fun.
Stern, M., 2008, January. The fitness movement and the fitness center industry, 1960-2000.
In Business History Conference. Business and Economic History On-line: Papers Presented
at the BHC Annual Meeting (Vol. 6, p. 1). Business History Conference.