Icon Health Club Strategic Analysis

This assignment analyzes the strategic position of Icon Health Club, a fitness center in Dublin, Ireland. It examines the club's ability to compete in the market, considering factors like cost structure, government support, and the Irish economy's influence on investment returns. The analysis also explores the growing trend of health consciousness and its impact on the demand for fitness services.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
1.0 Introduction................................................................................................................................2
2.1 T.O.W.S Matrix.........................................................................................................................3
2.1 SO (Maxi-Maxi)....................................................................................................................4
2.2 ST (Maxi-Mini).....................................................................................................................4
2.3 WO (Mini- Maxi)..................................................................................................................4
2.4 WT (Mini- Mini)....................................................................................................................5
3.0 P.E.S.T.L.E Analysis.................................................................................................................5
4.0 Conclusion.................................................................................................................................8
Reference List..................................................................................................................................9

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1.0 Introduction
Strategic management defines the formulation and implementation of major goals and
objectives of an organization through assessing its external and internal market (Daspit et al.
2017). This study will assess Icon Health Club of Dublin. Icon Health Club is a popular health
club in Dublin, Ireland, which provide innovative fitness services to the customers towards their
healthier life and wellbeing (Dublin. et al., 2017). The study will discuss the T.O.W.S Matrix of
the health club. It will assess the strategies for the health club for getting success in the market.
Apart from that, the study will also assess the external market of the health club through
analyzing PESTLE model.

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2.1 T.O.W.S Matrix
External Opportunities (O)
1. International expansion across the
country
2. Effective advertisement will enhance
the subscription rate of the fitness
members
3. Increasing numbers of business parks,
hotels and supermarket
4. Focus on different customer groups
5. Inclusion of more services will
enhance business potentiality
6. Adoption of advanced technology
External Threats (T)
1. Tough competitive pressure from the
direct competitors like Iveagh Fitness
Club and Inspire Fitness Centre
2. Increasing cost of advanced and up-to-
date fitness equipments
3. Availability of low cost and home
accessible health equipments
Internal Strength (S)
1. Strong brand reputation attracts the
customers
2. Fast growing company and strong
financial position
3. Highly educated and trained trainers
4. Clean and advanced fitness equipment
5. Comfortable environment within
fitness club
6. Adequacy of other amusement
facilities
7. Personal feelings and dedication of
personal trainers
8. Advanced Milon technology provides
innovative fitness
SO
Internal strengths will help in grabbing
external opportunities
ST
Internal strengths will assist in minimizing
threats of external market
Internal Weakness (W)
1. Overcrowded environment may
disappoint the members of fitness club
2. Inadequacy of personal trainer
3. Customer service is poorly integrated
4. Long subscription method of Icon
Health Club may disappoint the
members
5. High cost for personal training
services
WO
External opportunities will help in minimizing
the internal weakness
WT
Avoidance of internal weakness will help in
minimizing the external threats

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Table 1: T.O.W.S Matrix of Icon Health Club
(Source: Bettis et al. 2016)

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2.1 SO (Maxi-Maxi)
In this strategy, an organization can use its internal strength towards grabbing right and
huge external opportunities. In case of Icon Health Club, the organization can use its strong
brand reputation towards focusing in different customer groups towards enhance the total fitness
members. On the other hand, with strong financial services, Icon Health Club can include more
services towards enhanced business potentiality. Advanced Milon technology fosters innovative
fitness training, which can enhanced its brand reputation in international market. It will also
enhance its potentiality towards more international expansion (Mitchell and Leiponen 2016). In
this way, the internal strength of the health club can immediately grab its external opportunities.
2.2 ST (Maxi-Mini)
In this strategy, an organization can use its internal strengths towards avoiding or
minimizing the external threats. In case of Icon Health Club, strong brand reputation and
technically advanced equipments can assist the organization in beating the competitive pressure
in the external market. On the other hand, strong financial strength can help the fitness club in
coping up with the higher cost of advanced and up-to-date fitness equipments in the market
(Vogel and Güttel 2013). Furthermore, highly trained and educated personal trainers can assist
the health club in competing with the low cost and home accessible health equipments.
2.3 WO (Mini- Maxi)
In this strategy, an organization can overcome the internal weakness through using the
opportunities of external opportunities. In case of Icon Health Club, effectiveness advertisement
of the fitness services will enhance the subscription rate of the fitness members instead of higher
cost of personal fitness training sessions. On the other hand, adoption of advanced technology

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can improve the effectiveness of customer service (Gans and Ryall 2017). Furthermore, adoption
of advanced technology can also lower the long subscription method of Icon Health Club.
2.4 WT (Mini- Mini)
In this strategy, an organization reduces the level of weakness for avoiding the external
threats in the external market. In case of Icon Health Club, the organization needs to enhance its
adequacy of personal trainers towards beating the fitness service effectiveness. It will actually
help the organization in beating the competitive pressure in the external markets. On the other
hand, the organization also needs to reduce the cost of personal trainers towards beating the
competitive pressure of low cost and home accessible health equipments (Greco, Cricelli and
Grimaldi 2013). Such low cost of personal fitness training will enhance the subscription rate of
the fitness members, which will enhance the business profits. Such enhanced business
profitability will actually help the organization in beating the higher cost of advanced
equipments.
3.0 P.E.S.T.L.E Analysis
P.E.S.T.L.E Analysis of Icon Health Club
Political Factor  Support from Ireland government
 Stable political condition can also be helpful for the health club
 Changing government rules can hamper the business process
 Changing government policies regarding the health and safety regulation
can impact the health club
 Free trade agreement can facilitate the international expansion of the
health club

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Economic
Factor
 Developed and wealthiest economy of Ireland can enhance the return on
investment of the organization
 Frequent inflation rate can affect the pricing of fitness services
 Currency fluctuation can impact on the international business of the health
club
Social Factor  Increased disposable income of the customers can enhanced the
potentiality of subscription rate in fitness centre
 Inclination of people towards more healthier life is highly positive for this
fitness club
 Consumer habit to purchase more low cost and home accessible fitness
equipments can be threat for the fitness club
Technological
Factor
 Technological advancement in Ireland can help the health club in
incorporating more advanced fitness equipments
 Advancement in digital media and social media can help the club in better
business promotion
Legal Factor  Health and safety legislation cab be restrictive for Icon Health Club
 Reduced tax rate of Ireland can also minimize the overall business cost of
the health club
 The health club also adhere to employment regulations of the country
Environmental
Factor
 Environmental regulation of Ireland may limit some process of health spa
in this health club
 It has to adhere to environmental concerns of the country
Table 2: P.E.S.T.L.E Analysis of Icon Health Club

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(Source: Zietsma, Greenwood and Langley 2014)
According to Harrington et al. (2014), stable political condition of Ireland can improve
the business condition of Icon Health Club with flexible business policies. Changing government
rules and regulations regarding the health and safety of people can limit the business process.
Free trade agreement can provide flexibility to the health club in enhancing its international
markets. Boyd et al. (2013) pointed out that developed and wealthiest economy of Ireland can
enhance the potentiality of business through increased return on investment. However, frequent
changes in the inflation rate will influence pricing policy of the fitness services. Changes in the
inflation rate can increase the equipment cost of the fitness club for which the club can enhance
the price of the fitness services. Furthermore, the currency fluctuation often hampers the
international business of the health club. On the other hand, Shen and Gentry (2014) opined that
wealthiest economy of Ireland has actually increased disposable income of the people. Such
increased disposable income of the consumers has increased their spending power. It actually
increased the potentiality of fitness subscription rate in the health club. Furthermore, enhanced
inclination of people towards healthier life has actually enhanced the customer subscription rate
of the health club.
As per Theriou (2015), technological advancement of Ireland has increased the scope of
the health club towards incorporating more technically advanced fitness equipments. Such
advanced technical fitness equipment helps the health club in providing more innovative fitness
services. Furthermore, advancement in digital media and social media has improved the
advertising effectiveness of the health club towards attracting more customer groups. Mitchell
and Leiponen (2016) opined that some health and safety regulations has become the restrictive
factor for the health club. However, the reduced tax rate of Ireland has minimized the overall

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business cost of the health club. Icon Health Club has to adhere to some environmental
regulations, which influence the service like health spa.

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4.0 Conclusion
While concluding the study, it can be said that strong brand reputation of Icon Health
Club can assist it towards attracting different customer groups and enhancing international
market expansion. Strong brand reputation can also help the health club in beating the
competitive pressure in the external markets. However, Icon Health Club needs to reduce the
cost of personal fitness training services, which can facilitate it towards beating the competitive
pressure. Huge support of Ireland Government can improve the business potentiality of the
health club. On the other hand, the developed economic condition of Ireland has enhanced the
return on investment of the health club. Inclination of people towards healthier life has enhanced
the business scope of fitness services.