Expansion Strategy and Analysis: The Gym Group's Denmark Venture

This report examines The Gym Group's international expansion strategy, focusing on its potential entry into the Danish market. The report begins with an introduction and provides background information on The Gym Group, a UK-based fitness company, and the business environment in Denmark. It highlights key aspects such as Denmark's population, GDP, inflation, unemployment, and exchange rates. The analysis includes a PESTLE analysis (though not explicitly detailed in the provided text) and Porter's Five Forces model to assess the industry's attractiveness. The report presents data, graphs, and tables related to Denmark's economic indicators, such as inflation and unemployment rates. The report concludes with a list of references and a time plan for the research and report completion.

Business Organisations in a
Global Economy
1

Table of Contents
1) Introduction.................................................................................................................................3
2) Background information on The Gym Group.............................................................................3
3) Background information on the business environment...............................................................3
4) Data/Graphs/Tables.....................................................................................................................4
5) References...................................................................................................................................5
6) Time Plan.....................................................................................................................................5
2

1) Introduction
Under this plan, organisation that has been taken into consideration is The Gym Group,
which is a Public Limited Company and looking forward to expand its business at international
level. The chosen country is Denmark, which is carrying high potential for this organisation to
grow in an effective and efficient manner. Before expansion it will be must for The Gym Group
to conduct environmental analysis (Olwig, 2019). This is where, company will be conducting
PESTLE (Macro Environment) and Porter's Five Forces Model in order to analyse the industry
attractiveness.
2) Background information on The Gym Group
2007 was the year when The Gym Group was found and at present, company
headquartered at Croydon, United Kingdom. Including this, fitness group i.e. The Gym is
specifically registered in England and Wales with the registration number 08528493. Basically,
The Gym is offering it's clients with number of fitness related services in all over United
Kingdom with best fitness equipments with affordable prices on membership.
Away with this, at present The Gym Group working among different areas of London,
Scotland, Wales and among other cities of United Kingdom. Now this organisation is looking
forward to launch it's fitness services in Denmark. Including this, if it is talked about market
share of this company carried in United Kingdom was 24% (in 2018). On the other hand, this
business organisation is working in a competition market structure. Some of the major
competitors Gymbox, PureGym, David Lloyd, Xercise4less, Fitland, GFG Fitness, Virgin Active
and Energie Fitness are the ones that has given good rivalry to this fitness group.
Including this, if it is talked about the financial performance level of The Gym Group
then in the year of 2018 then the revenue, which company generated was £123.88 Millions and
£11.70 Millions is said to be the operating profit that this company gained.
3) Background information on the business environment
Country that has been taken into consideration is Denmark, which is the nation of Europe
continent. If it is talked about neighbouring nations of Denmark then these are: Sweden (to the
east), Germany (to the south), United Kingdom (to the west) and Norway (to the north). In the
year of 2015, there are number of sectors that has given ample number of benefits to this country
and these are defence, public administration, human health, education along with the social work
3

activities, transport, wholesale and retail trade, food services, accommodation other industries as
well. Also, 5,786,107 is said to be the population of this nation and GDP per capita is 56,307.51
USD (2017) (Romani and et. al., 2017). Away with this, inflation rate of this nation is 1.3% and
unemployment rate is 3.70, exchange rate is 1 GBP = 8.41970 DKK. Also, the interest rate in
Denmark averaged 2.66 percent from 1992-2019. lastly, if it is talked about FDI Inward Flow
then in the year of 2016 it was approximately 38 million US Dollars.
4) Data/Graphs/Tables
(Sources: Denmark: Inflation rate from 1984 to 2024, 2020)
4
Illustration 1: Denmark: Inflation rate from 1984 to 2024

(Denmark: Unemployment rate from 1999 to 2019, 2020)
5) References
Books and Journals
Romani, L. and et. al., 2017. Diversity management and the Scandinavian model: Illustrations
from Denmark and Sweden. Management and diversity: Perspectives from different
national contexts, pp.261-280.
Olwig, K., 2019. Nature's ideological landscape: A literary and geographic perspective on its
development and preservation on Denmark's Jutland Heath. Routledge.
Online
Denmark: Inflation rate from 1984 to 2024. 2020 [Online]. Available through:
<https://www.statista.com/statistics/318356/inflation-rate-in-denmark/>.
Denmark: Unemployment rate from 1999 to 2019. 2020 [Online]. Available through:
<https://www.statista.com/statistics/318316/unemployment-rate-in-denmark/>.
6) Time Plan
Research started on March 13th, 2020 and the first draft will be submitted on March 13th,
2020 and it will be completed by April 17, 2020.
5
Illustration 2: Denmark: Unemployment rate from 1999 to 2019

6