Business Project: UK Gym Industry Analysis, Porter's Five Forces

This project provides a detailed analysis of the UK gym industry. It begins with an introduction to the sector, highlighting its market size and structure, which has seen significant growth in recent years with a high penetration rate and increasing market value. The project identifies major competitive players such as Pure Gym and Gym Box. It then applies Porter's Five Forces framework to assess the industry's competitive dynamics, examining the threats of new entrants, the bargaining power of buyers and suppliers, the threat of substitute products, and competitive rivalries. Key issues, including high competition and customer choice, are discussed. The project concludes with a look at future directions, emphasizing the importance of global expansion and the need for high-quality staff to sustain growth. The analysis draws on multiple sources to support its findings.

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Major competitive players Key issues
Gym Industry in the UK
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Bibliography
Kremer, J., Moran, A.P. and Kearney, C.J., 2019. Pure
Sport: Sport Psychology in Action. Routledge.
Thomson, D. and McAdoo, K., 2016. An exploration
into the development of motivation to exercise in a
group of male UK regular gym users. International
Journal of Sport and Exercise Psychology, 14(4),
pp.414-429.
Dark, K., 2019. Exposure and erasure: Fat kids in gym
class, fat adults as athletes. Fat Studies, 8(2),
pp.127-134.
Rodríguez-Cañamero, S., Gallardo, L., Felipe, J.L. and
García-Unanue, J., 2018. Economic trend analysis of
the fitness sector. Journal of Physical Education and
Sport, 18(2), pp.575-584.
McVeigh, J. and Begley, E., 2017. Anabolic steroids in
the UK: An increasing issue for public health. Drugs:
Education, Prevention and Policy, 24(3), pp.278-285.
Threats of new entrants
It has been examined that gym industry in UK has high
barriers to the new entry. The investment of cost is high
in this sector as huge amount of investment is incurred
at the time of purchasing the machinery and
equipment’s. So, it can be said that the company has to
face the huge threats in terms of the high investment in
the equipment’s and machinery.
Bargaining power of the buyers
Buyers have high bargaining power in health and
fitness sector as they have wide choice to select from.
In the present scenario, there are 94% of the customers
who have the choice from selecting three or more
health companies. Buyers only prefer the services that
are affordable as compared to the other competitors
present in the market.
Bargaining power of suppliers
The bargaining power of the suppliers is low only
because of the strong brand power and distribution
capabilities of the organizations.
Threat of substitute products
The gym sector has the high risk in terms of
substitution. It has been that in the UK gym sector
there are many companies from where the customers
can easily substitute the products and services that are
offered in the market (Rodríguez-Cañamero et
al.,2018).
Competitive rivalries
The competition is high in the UK gym sector as there
are many companies such as pure gym and Gym box.
High competition level
In the UK gym sector, the competition
level is high which affect the overall
growth of the business in the
competitive market area. It has been
seen that there are many companies that
are present in the market and due to this
the affect is on the success ratio.
Customers have wide choice to select
In the UK market, the customers also
have the wide choice to select from
different companies. There are
companies that are offering similar
types of services, so it could be said that
customers have a wide scope to choose
from the different range of the services
(McVeigh and Begley, 2017).
Introduction Porter’s Five Forces
It has been revealed by the UK Fitness
industry report that UK health and fitness
is healthier for the citizens. There are
more gyms and members and if
compared with the other factors the
market value is high. In 2019, the fitness
facilities have been enhanced by 2.9%
and 4.2% in the market value. The overall
rate of the growth in terms of market
value has been enhanced by 4.2% to 5.1
Billion. The UK penetration rate has been
passed by the 15% and in reference to
membership it is boosted by 4.7% to 10.4
Million. The main of the fitness industry
is to maintain the health of the people. It
can be said that Fitness is getting more
fashionable and there are more than 7,000
gyms in the UK (Dark, 2019).
Market size and
structure
The gym sector in the UK has enhanced
its footprint by 15.1% in 2012 and the
health and leisure sector is considered as
the growing business area in the UK
market. In 2013 till 2018, there are
various private sectors clubs enhanced
from 3,269 to 4,400. The growth relates
with the awareness and also actual
experience in terms of physical and
mental health. So, the market area of the
gym industry in UK has grabbed the large
market network (Kremer, Moran and
Kearney, 2019).
In the UK gym industry, the
major competitors are Pure
Gym, Gym Box and anytime
fitness gym. These are the
major competitors that are
present in the market of UK.
Future direction
• Global expansion:
It is important for the UK gym sector
to focus on global expansion. If this
sector emphasizes on the expansion
then it would be easy to enhance the
overall growth in the competitive
market. The companies in the UK
market should focus on establishing
their business outlets in other
countries as it can help in boosting the
profit margin.
• High quality staff is mandatory
For future growth, it is necessary for
the companies to hire quality staff or
trainers so that it could be easy to
maintain the living standard of the
people (Thomson and McAdoo,
2016).