Strategy and Innovation in the Gym Industry

This report discusses the importance of strategy and innovation in the gym industry, focusing on a small company named Realfit. It provides an overview of the company, its current strategy, and the industry analysis using Porter's five forces model. The report also highlights the current and future trends in the gym industry and discusses the potential risks faced by the company.

STRATEGY AND
INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Description of the company....................................................................................................3
Industry analysis.....................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8
Discussion of major risk.........................................................................................................8

INTRODUCTION
In this competitive world for the company to exist successfully it is very necessary to
bring in time to time innovation in its strategies which the company is using to run the business
(Johnson, 2016). Innovation is defined as bringing in some new changes in the existing product
or bringing in completely new product. In contrast to this strategy refers to as the ways in which
the company run its activities.
The present report is based in a small company named Realfit. This is a company
established in 2014 July aiming at delivering of high quality training to the people so that they
get more fit and healthier. The present report will discuss the company and its current strategy
being used. Also, this will highlight the industry overview along with the risk which the business
may go through.
MAIN BODY
Description of the company
Realfit is a gym set up in July 2014 for providing all the services of gym and provides the
superior quality services to the people who are interested in getting healthier. This is a set up
which aims at understanding the needs of the client and then providing the services in
accordance with the needs of the consumers.
Product and services- the company is very keen in providing the services to the people
coming to the place for the gym activities. The company provides for the group training sessions
wherein all the sessions are led by the top coach of the gym which provides for the best
experience to the people coming to the gym. The gym has divided all its services in accordance
with some common base such as for women the session is named women’s lift, for people loving
boxing a separate session is being arranged within which only the people who enjoy boxing
comes, if the person wants to experience high intensity workout then they can join the session of
realfit X. Also, this gym provides for the services to the women who are expecting a baby to live
a healthy and safe life under the session named MUM AND BABY. This also provides many
health- related services to the teen and also to the people who are above 60 age (Group training
session at Realfit, 2017).
Customer base- the consumer is the main factor pertaining to the success of any of the
company. this is majorly because of the reason that if the consumer will not like the products and
services then the company will not run successfully. The consumer base is defined as the main

target consumers which are being focused by the company. here the main customer base of
Realfit is the young people. This is majorly because of the reason that with the changing world
scenario the people are becoming more conscious about their health and well- being and this is
much more among the youth (Dodgson, 2018). Therefore, the main customer base of the gym is
the youth of the country.
Location and size- the size that is the level at which the gym run is small. This is because
of the major reason that this has been established in 2014 only and this has not taken much time
and because of the this till now it has not expanded much. Thus, the size of the gym is small to
medium and this needs to be increased so that the gym expands its business in other countries as
well.
The current strategy adopted by Realfit gym is to attract the consumers by way of digital
marketing. This is majorly because of the reason that this is not much old gym so it still needs to
attract and retain consumers. For this also the gym is providing with the facilities of free trial of
the gym and also the option of guaranteed money back if the consumers do not like the services
of the gym.
Industry analysis
The industry analysis is defined as the analysing the whole industry in which the
company is existing. The analysis of the whole industry is very necessary for the individual
company so that the company can study and analyse the recent trends going on in the industry as
a whole. This will benefit the company to understand the recent trends going on in the market
and see the impact of these changes on the business. This industry analysis also helps the
company in knowing the competitors and what strategies are they adopting to the run the
business. This analysis of the competitor helps Realfit in identifying its position within the
industry. For analysing the industry Realfir is using the method of Porter five forces which has
been discussed in the following points connected below-
The Porter five forces is a model which helps the company in analysing the competition
which is placed in the business world and the industry. The components of Porter five forces are
as follows-
Bargaining power of supplier- this refers to as the power which is lied in the hands of
the suppliers of the raw materials (Pisano, 2015). This power needs to be low because of the

suppliers have much power then they will supply the raw material at high prices and it may also
be possible that they provide the raw material of low quality.
Bargaining power of buyers- the buyers are the king of the industry because every work
done by the companies are done keeping in mind the needs and requirement of the buyers only
(Kim, Kim and Kim, 2016). Thus, if the bargaining power is low then it will be beneficial for
Realfit gym as they can provide its services to the consumer in much more clear way.
Threat of new entrant- this is the major information which is gained by the help of
analysis of the industry. This is because of the reason that if in the gym industry the entry of new
business is high then it means that the industry is less attractive for the existing companies.
Threat of substitute products- this is a major factor which is known with the help of the
industry analysis. This tells that how many substitute products and services are there of the
Realfit. The substitute product of the gym is less thus, it is a beneficial part for Realfit.
Industry rivalry- this is defined as the competition which is in the industry. For Realfit
the competition is very high. This is because of the major reason that the latest trend is of focus
on health consciousness. And because of this reason it is very necessary for Realfit to study all
the competitors within the industry and to make the strategies in accordance with the strategies
of the competitors. The major competitors of Realfit are like Enhance fit Studio, Advance fitness
plus, Fit Chick Boot camp and many other competitors.
Latest and future trends
The business exists in business environment where things keeps on changing very
frequently and because of this reason there are many different trends which are developed and
which are going to develop in future. The current and future trends affecting the business of the
gym industry are discussed in the following points connected below-
The current trend is of the shift of human beings towards the health consciousness. Here
the consumers are much motivated towards living the healthy life. This is because of the reason
that because of globalization and modernization the humans have adopted to the modern culture
of being healthy and secure.
Another trend is the plant- based diet. The humans have become health conscious and
because of this the main focus of them is on the healthy eating (Naiman, 2016). And because of
this reason they look for some healthy food eating options that is plant- based foods.

Another trend for fitness is the use of HIIT that is High Intensity Interval Training. This
type of training involves short periods high intensity exercises which includes short interval in
between the exercises. The main element of these type of training is on the time efficiency which
is involved in doing the workout.
Another trend is the at- home workout. This is also a latest trend wherein many gym and
trainers go for the option of live streaming videos and other videos on different social media
networking sites. This is done because of the reason that those people who cannot come to the
place of training or the gym area can watch those videos and do the exercises at their home only.
Another trend is of the use of wearable technology which means the technology like
fitness tracker, smart watches, heart monitor and many other similar technologies. The use of this
is very necessary because of the reason that these technology helps the people in tracking their
health and if the health is not good then measures can be taken to improve the health (Martín-de
Castro, 2015).
One more trend is of group training. This type of training is promoted because of the
reason that this type of training helps the people taking the training to perform to their best. This
is majorly done because of the reason that in a group the people will do the exercises as
compared to doing individually. This is because of the reason that in public the people will do
the workout even if they are getting problem because of the fear of public reaction.
CONCLUSION
From the above study it can be analysed that the analysis of strategy being implemented
within the company is very necessary. This is majorly because of the reason that if the strategy
will not be reviewed then it is possible that the company is using obsolete technology or some
older strategy. This is because there are frequent changes taking place in the external
environment and many innovations coming in the companies and this have huge impact on the
running of the business.
In the present report it is discussed that what is the size of the company, the product and
services provided by the company. Further in the report the analysis of the whole industry is
done with the help of Porter five forces model which helped the company in knowing about the
competition present in the industry. In the next the current and future trends of the gym industry
was discussed. In the end the risk and issues faced by the gym was discussed.

REFERENCES
Books and Journals
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kim, S., Kim, H. and Kim, E., 2016. How knowledge flow affects Korean ICT manufacturing
firm performance: A focus on open innovation strategy. Technology Analysis & Strategic
Management. 28(10). pp.1167-1181.
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 session at Realfit. 2017. [Online]. Available through:
<https://www.realfitcentre.co.uk/real-services/>

APPENDIX
Discussion of major risk
The business is operated in the dynamic environment where anything can change at any
time. Therefore, there are many uncertainty and risk associated with doing the business. In the
present case that is the business of gym there are many different kinds of risk associated with the
running of the business. These risks are discussed in the following points connected below-
The first and foremost risk is the changes in the taste and preferences of the consumers.
This is the latest risk because of the fact that if the current trend of consumers is in favour of the
health consciousness then it might be possible that sometime later the trend may change to
something else.
Another risk is related to finance. This is a major risk because of the reason that the
exercising equipment and other related machineries are very expensive to buy and for this heavy
money is required which the company has to arrange for.
One more risk is the risk of injuries and also the risk of life. This is a major risk because
of the reason that the people using the heavy exercising machineries are very risky because of the
reason that these machineries can provide damage to the health of the people. And also, the
people doing exercises on these machineries can get injured.
Another risk is of the equipment which are being used in the gym. This is a risk because
of the reason that the equipment are machineries and there is a risk associated that is the
equipment can stop while running or at time when the people are doing exercise in that
equipment.
Another risk is the lack of planning. This is because of the reason that any misshaping or
any disaster can take place any time. Thus, the companies must have some pre planning that if
any unfortunate thing happen then how to deal with that situation and if anything, wrong happen
with any of the consumer then what actions are to be taken.