Strategy and Innovation

This report discusses the current strategy of a fitness company and provides an industry analysis overview. It explores the products and services offered by the company and its competitors. The report also includes a PESTLE and SWOT analysis of the company.

Strategy and Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
CURRENT STRATEGY OF COMPANY......................................................................................1
INDUSTRY ANALYSIS OVERVIEW..........................................................................................3
DESCRIPTION AND DISCUSSION.............................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7
Market and customer data...........................................................................................................7
Industry report...........................................................................................................................10

INTRODUCTION
Strategy is considered to be high level plan of action which helps in achieving goals of
the company under various condition of uncertainty. Innovation is referred to as new idea, new
imagination, creative thoughts which in turn helps in better solution to the specific problem in
order to meet new requirements, existing market needs and unarticulated needs (Naiman, 2016).
This report tends to highlight on the current strategy of the company. This study also focuses on
analysing the business environment of the industry of company. Furthermore, this report helps in
clearly highlighting the issues and risk associated with the business.
Real fit is a local fitness company which was established on July 2014. The main aim of
Real fit is to provide high quality fitness services and small group training to the individuals who
seek fitness.
CURRENT STRATEGY OF COMPANY
Real fit is a local fitness company which was set up on July 2014 with the key aim to
provide high quality fitness services and small group training to the individuals who seek fitness
(Group Training Sessions at Realfit, 2017). The key goal of the Real fit centre is to get people
become more healthier, stronger, mobile and fitter. Real fit centre tends to focus on three specific
strategies in order to attract large customers. The first strategy is Real fit express where it focuses
on providing personal training to the individuals. Real fit express is suitable for the individuals
who tends to be engaged.
The second is group training strategy, where top coaches who have high degree or
experience tends to lead the training group.
Lastly, Real fit centre tends to focus on deliberate strategy where they tend to focus on
careful budgeting, planning, strategic thinking in order to provide services and take relevant
feedback from customers.
Products and services
Real fit tends to focus on building a fitness at all levels according to the individual
capability (Johnson, 2016). The key goals of the Real fit is to engage training by specialized
coach in order to give high level of experience to the individual. Real fit provides various range
of services like:
 Real fit sessions
 Women's lift
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 Boxing
 Strength Club
 Real fit X
 Real fit Bootcamp
 Real fit Stretch
 High Intensity Interval Training (HIIT)
 Circuits
 Real fit Teens
 Senior Movement Classes Over 60
 Real fit Parent And Child
 Real fit Mum And Baby.
Real fit centre tends to focus on dealing with various fitness products like clothes, bottom
wear, fitness gadgets, sweatshirt, etc. (Group Training Sessions at Realfit, 2017).
Customer base
Real fit centre tends to target customers who are engaged in fitness and health car
services. This helps customer s to be healthy and gain various mental and physical benefit.
Locations
Real fit centre is located at The Garage, High street, Bedford, Bedfordshire. This
company is located in United Kingdom which helps in delivering effective fitness products and
services.
Competitors of Real fit centre
Real fit centre is located in London where there are large number of competitors present
in the fitness industry. Pure gym is considered to be one of the largest gym in UK where they
have approximately 172 gyms across United Kingdom. It is the first company which has attained
a million members. Another major competitors of Real fit centre is David Lloyd's club which
tends to offer several multinational sports such as tennis, health clubs and gyms, health and
leisure business (Aloini and et.al., 2015). It has 99 clubs in the United Kingdom and 15 clubs
internationally in Belgium, Spain, Germany and Netherlands. The Gym group plc is considered
to be as the another fitness company which intends to give stiff competition to the Real fit centre.
It tends to operate 169 gyms across UK. It also offers health and fitness facilities for 24 hours per
day. It has approximately 800000 members currently.
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INDUSTRY ANALYSIS OVERVIEW
The fitness industry tends to include both gym as well as fitness centres and weight loss
centres (Dodgson, 2018). It is mainly concerned with providing infrastructure, equipments,
training and space in exchange for particular membership fee. The industry revenue is estimated
to be £94 billion as per 2018. The total market value tends to increase by 4.2% and the total
membership grew up by 4.7%.
VRIO Framework
Value: Real fit centre adds value to the customers by effectively offering various health
and fitness benefit to the individual (Pisano, 2015). It also tends to offer mental and physical
benefits which helps individual to live a healthy and prosperous life.
Rare: Real fit centre has positioned itself to be rare in the market by providing highly
advanced and quality services, assets and equipments. It also tends to offer effective services like
results accelerators, real fit sessions and personal training. This in turn helps in attracting large
number of customers from across the globe.
Imitability: Real fit centre tends to provide unique services and equipments which was
not imitable by any other company (Goffin and Mitchell, 2016). This helped company to position
itself in the market which leads to higher operational growth and efficiency.
Organization: Real fit centre focuses on carrying out its business in an organized and
systematic manner (Group Training Sessions at Realfit, 2017). It tends to focus on critically
examining the needs and want of the customers. It gives several options to the customers which
helps them give benefit to enjoy a sustainable competitive advantage.
DESCRIPTION AND DISCUSSION
PESTLE Analysis
The company tends to get affected by several macro- environmental factors which in turn
affects the operations of the business. Taking into consideration these macro- environmental
factors helps in smooth functioning of the business.
Political factor: Political instability tends to affect the fitness industry in UK. On the
contrary, stable political environment does not result in corruption, bureaucracy, military
invasion, etc. Change in government law and taxation policies tends to make a conducive
environment for fitness market (Martín-de Castro, 2015).
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Economic factor: Real fit centre is mainly affected by foreign exchange rate, interest
rate, inflation rate, foreign exchange rate, savings rate and economic cycle. Stable economic
environment aids to better opportunity to the customers and also results in higher employment
rate.
Social factor: The culture of the society and the current market trend largely influence
the Real fit centre works. The attitude and belief of the customers tend to affect the fitness
industry (Aloini and et.al., 2015). Level of population, age, demographics, attitude, health,
leisure interest, environmental consciousness, social convention etc. influence Real fit centre.
Technological factor: Regular and continuous advancement in technology largely
influence the fitness industry. Use of disruptive and not up to date technology tends to largely
affect the operations of the business (Martín-de Castro, 2015). Coping up with the fast changing
technology is a key to sustain for the longer period of time in the fitness market.
Environmental factor: There are several environmental laws, climatic change, weather,
eco- friendly products tends to influence the operation of the Real fit centre. The company must
comply with environmental laws and must use products and equipments which are green and
environmental friendly (Pisano, 2015).
Legal factor: There are several legal laws such as copyright law, intellectual property
right, consumer protection law, discrimination law, data protection act, health and safety law
(Goffin and Mitchell, 2016). The company must comply with these legal laws for smooth
functioning of the Real fit centre.
SWOT Analysis
Strengths: The major strengths of Real fit centre is that it provides various unique
services to the customers. It tends to give personal training as well as group training to the
customers (Pisano, 2015). It has high degree of professional and experienced coaches with well
equipped machines and instruments aids to major strength for the company.
Weaknesses: Real fit centre tends to focus on one is to one session where some
customers do not avail the same services and in turn results in high traffic. It is located in
inconvenient place in London where it makes it difficult for the customers to locate the fitness
centre.
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Opportunity: The key opportunity associated with the Real fit centre is that it can offer
various range of fitness program and services which can be effectively personalized according to
the needs and want of client (Goffin and Mitchell, 2016).
Threat: The major threat associated with the Real fit centre is that large number of
rivalry competitors like the Gym group plc, David Lloyd's club, Pure gym are present in the
fitness market.
CONCLUSION
This study summarizes that, strategy helps in achieving goals of the organization by
effectively making high level plan of action for specific problem. Innovation is referred to as
creative thoughts and new idea which helps in meeting new requirements in an innovative and
efficient manner. Furthermore, this study helps in gaining better insight on fitness industry and
evaluates that it is one of the growing industry in UK. This study helps in analysing the
competitive position of the company. This study helps in determining the risk and issues with the
help of pestle and swot analysis.
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REFERENCES
Books and Journals
Aloini, D and et.al., 2015. Technological strategy, open innovation and innovation performance:
evidences on the basis of a structural-equation-model approach. Measuring business
excellence.19(3). pp.22-41.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Martín-de Castro, G., 2015. Knowledge management and innovation in knowledge-based and
high-tech industrial markets: The role of openness and absorptive capacity. Industrial
Marketing Management.47.pp.143-146.
Naiman, L., 2016. Design thinking as a strategy for innovation. Retrieved December.10. p.2016.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review.93(6).pp.44-54.
Online
Group Training Sessions at Realfit. 2017. [ONLINE]. Available
through:<https://www.realfitcentre.co.uk/real-services/>
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APPENDIX
Market and customer data
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Industry report
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