Realfit Centre: Description, Industry Analysis, and Risk Analysis

This report provides a detailed description of Realfit Centre, its services, industry analysis including Pestle analysis and Porter's five forces analysis, and risk factors affecting its growth in the fitness industry.

Strategy and Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Description of Realfit Centre.......................................................................................................3
Industry Analysis.............................................................................................................................3
Risk Analysis...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Today's youth are very active in terms of theirs fitness as they like be fit, healthy and well
maintained. In country like UK there are lots of fitness training centre which are training people
for maintaining their physical appearance. Realfit centre is holding a good name in the industry
of fitness which provides training and services to people of all ages. This report carries out the
detail about the Realfit centre, its services, also Pestle analysis and Porter's five forces analysis,
Risk factors which affects its growth in market.
MAIN BODY
Description of Realfit Centre
Realfit centre is gym in the UK, it provides many services along with training to become
healthy. Youth as well as old age people come here to maintain there health, this gym provides
many kinds of exercises, training and healthy diet charts to their customers. It provides great
experiences to their customers so that they just don't build their body only, they have fun there,
they enjoy their time while doing exercises. This place is very open, contains highly equipped
machinery for building body(Raven, 2018). The gym trainers are well trained and provides good
services to their customers. They support old people to maintain health, they take care about their
health. It gives motivation to other people to join their centre, as they give motivation to their
consumers, they are inspired by them, overall people are attracted towards this gym and feel free
to join it. Realfit centre provides clothing range for gym, they provide online and deliver at you
doorstep. This centre arranges sessions for different people according to their requirement. They
charge reasonably from people. As they aim to open their branches in many locations in UK.
Industry Analysis
Fitness and Health industry is growing very fast at this time everywhere in the world.
People like to be fit and fine, they live a healthy life with their families, they enjoy it. So its in
trend to build body in fashions sense. Many people just do it to live health lifestyle. Fitness
industry have a large scope in the future. Its Pestle Analysis is as follows
Political factors
Political issues are always comes from the government in the form of rules and regulations,
policies and legislation, UK's government are very supportive in terms to provide their citizen a
good health, so they help the fitness industry. They have negligible political factors which can be

barrier in opening fitness centre so it is good to start a new gym in the country. Realfit centre
gets advantage of this factor and they have no issues with this(Haemers, 2016).
Economic Factors
UK's economic condition is very appropriate for fitness industry. Many investors come to invest
in this business as they have seen scope in this, many customers posses good financial condition,
and they can easily join the fitness centre. So this business will lead to profit only, But if
recession period is there and economic condition falls down of the country it will be in loss.
Then this industry will sort out with providing good offers to their customers and short term
courses.
Illustration 1: PESTLE ANALYSIS
(Source: Using PESTLE to Develop a Strategic Vision on the
Future of SEO, 2015)
Social factors
These are demographic factors, as UK's people are very healthy, they are suffering through
obesity, So the industry would target all of them. Some people are not conscious about fitness
and health, so the fitness centres should spread awareness and let them understand the
importance of exercise and healthy body. They can provide low prices, and small sessions to
enhance their interest.
Technological factors

As increment in the technologies in every field it influences the fitness industry also,
technological developments are very important so it affects their services and exercise, they are
providing. As they have highly technical equipments in their centre people will come more to use
them, and it would lead to save the timing.
Environmental factors
Environmental conditions does not affect the fitness industry. Weather and climate change can't
affect the health and fitness of people so it would be appropriate for them to do exercise in
continue manner.
Legal factors
The final factor that influences the industry environment is legal. For the health and wellness
industry, there are health and safety regulations that businesses must follow, insurance issues,
regular machine maintenance, and proper training of staff members. Gyms are required to keep
their establishments clean and safe in order to avoid the chance of illness or injury of customers.
They must also properly train staff members on dealing with clients because of the personal
nature of their roles; this would help in avoiding lawsuits from clients as well(Masih, and et.al.,
2019).
Porter's Five Forces
Porter identifies five forces which influence companies at industry level. These are threat
of new entrant, bargaining power of suppliers, bargaining power of customers, threat of
substitutes, rivalry amongst existing competitors.

Illustration 2: Porters 5 Force
(Source: Porters 5 Force, 2016)
First the new entrant in the fitness industry, there are number of barriers to enter any new
industry, like cost, capital investments, threat of retaliation. Also, the laws and permits are
properly signed by the authorities. If the new entrant enter the industry the competitors of it are
against of it they would low their costs, refine their structures.
Second is power of suppliers, the suppliers for this industry are majorly be exercise equipments
manufacturers and supplements providers for the gym. The bargaining power of the suppliers are
relatively low in this industry because it just depends on the quality of the equipments. So the
customers can switch from one supplier to another is not so high(Boafo, Kraa, and Webu, 2018).
Third is Power of Buyers, it is very high because there are lots of fitness centre are available in
the market, customer can switch easily if he would not get proper services and equipments and
well trained trainers.
Fourth one is Threat of substitutes , mainly the substitutes for this industry would be working out
at home. This option will be cheaper than the traditional gyms. One more substitutes is yoga
centre or open garden classes in which the old ages or youngsters can go do the yoga at
reasonable prices, also in the open air of gardens peoples are free to do exercises or yoga to
maintain their health. Fifth one is rivalry amongst existing competitors as there are lots of
competition in the fitness industry, who provide better services, who have well maintained, high

class equipment in their centre, who can give best rates to the people(Wang, and Nguyen, 2017).
All these factors are considered in the industry to maintain their position in market and fight
against the rivalry.
Realfit Centre is doing its best after analysing the market and trying to provide best
services to their customers.
Risk Analysis
Risk Register
Risk Description Likelihood Impact Severity
Risk from the
competitors in the
industry
High High High
Risk of substitutes Medium low Medium
Risk of economic
factors
Low Low Low
Risk of social factors High Medium Medium
There are lot of risks in the fitness industry according to the details described by Pestle
analysis and Porter's five forces identified. Majorly there are risk from the competitors in the
industry as they provide better services to the customers, they provide good membership
schemes, more discount offers to the customers will lead to loss of the particular gym centre. If
the competitor provides the best gym equipments and machinery for exercise at good prices the
public will attract more towards it. According to threat of substitutes there is risk of losing the
position in the market, fitness centre should be aware of their substitutes, like other provides
homes services, trainer go to the customers home and train him better at low cost. Customer
would be choosing this option. Risk from the new entrant in the industry as if it provides better
services, highly equipped machinery, more spacious, provide good discounts to established in the
market. The economic factors affect the company when they have recession period. And social

factors also posses risk like people are not aware, they don't know about the diseases happens
due to obesity(Anderson, Grant, and Hurley, 2017).
So the Realfit centre have to be conscious about these factors of risk, as they do the
market research properly. They launch new strategies to gain customers on their sites, follow
new market strategy for maintaining position in market. They should also apply lost cost strategy
in their gym, they should organize small sessions of exercise for their customers, give demo of
seven days in their gym. Good membership schemes should be given to their customers. They
organize their centre according to customers needs, they should understand the customers needs,
and then start their exercise and diet. It builds their reputation for taking care of the customers
and enhances their target segment(Li, 2018).
CONCLUSION
According to the study on fitness industry, it is very helpful for the people to maintain
their health. Customer choose to be healthy and joining these fitnesses centre according to their
convenience. Realfit centre provides the best quality of gym equipments in their centre.
Reasonable membership schemes to their customers. This industry is growing very fast. All age
people, come to fitness centre in order to maintain their health, so they provide care to old age
people, qualitative services to everybody like youth. They also give gym exercise clothes to the
customers as affordable prices, and also provide them online to other people who order online.
Realfit is doing social works to spread awareness in people about their health.

REFERENCES
Books and Journal
Raven, S., 2018. Mind the gap: Sport management education and employability auto-
ethnographical analysis of sport management education and the sports fitness industry.
Education+ Training. 60(5). pp.458-472.
Haemers, I., 2016. Success story of a young fitness brand: Social media influence as an indicator
of success in the fitness industry
Masih, J.,and et.al., 2019. Market Capturing and Business Expansion Strategy for Gluten-Free
Foods in India and USA Using PESTEL Model. Sciences. 10. pp.202-213.
Boafo, N. D., Kraa, J. J. and Webu, C. G., 2018. PORTER’S FIVE FORCES IMPACT ON THE
PERFORMANCE OF COMPANIES IN THE BANKING INDUSTRY IN GHANA.
Wang, C. N. and Nguyen, X. T., 2017. A Hybrid Approach for Measuring Productivity in the
Global Fitness Industry by Using Grey and DEA Model. American Scientific Research
Journal for Engineering, Technology, and Sciences (ASRJETS). 38(1). pp.33-47.
Anderson, C., Grant, R.L. and Hurley, M.V., 2017. Exercise facilities for neurologically disabled
populations–Perceptions from the fitness industry. Disability and health journal. 10(1).
pp.157-162.
Li, B., 2018. Risk Evaluation and Prediction of Rainfall Disaster in Flood Season Based on
Pearson Fitness Test and Risk Function. Academic Journal of Computing & Information
Science. 1(1).
Online
Porters 5 Force. 2016. [Online]. Available Through:
<https://thecimastudent.com/2016/10/14/cima-e2-porters-five-forces/>.
Using PESTLE to Develop a Strategic Vision on the Future of SEO. 2015. [Online]. Available
Through: <https://www.polemicdigital.com/pestle-strategic-vision-future-seo/>.