Business Innovation Report: Goodlife Gym - Pricing and Revenue

This report provides a comprehensive analysis of Goodlife Gym's business innovation, focusing on market analysis, pricing strategies, and revenue streams. The report begins with an introduction to business innovation and its application to the Goodlife Gym case study. It then delves into a market analysis, utilizing SWOT and PESTEL frameworks to assess internal and external factors affecting the organization. The report examines Goodlife Gym's pricing strategies, including value-based and competitive pricing, and explores potential revenue streams. Recommendations are made regarding pricing strategies and home service offerings. The conclusion summarizes the key findings and suggests areas for improvement, such as implementing competitive pricing. References to academic sources support the analysis.

Business Innovation

Table of Contents
INTRODUCTION.................................................................................................................................3
Task.......................................................................................................................................................3
Market Analysis.................................................................................................................................3
Pricing strategies...............................................................................................................................5
Revenue streams................................................................................................................................6
Recommendations and Conclusions......................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Business innovation is defined as innovating in various practices undertaken by
company to achieve its business objectives. This report is based on the case study about the
business model Goodlife Gym in respect to its practices. Henceforth, report will emphasis on
the market analysis in respect to the organisation. Revenue model apply by company would
also discuss briefly in this report. Furthermore, this report would also discuss the pricing
stragey follow by the business organisation.
Task
Market Analysis
Market analysis involves analysing and assesses all different aspects related to the
market. This involves analysing the internal and external factors that affect the organisation,
income and demographics of the target customers of company.
SWOT Analysis
SWOT Analysis is a tool used to assess about the internal factors related to the
organisation. This involves different strengths, weakness, opportunity and threat associated
with the organisation.
Strength:
 Technological advancement of the organisation.
 Effective and engaging marketing campaigns of organisation.
 Location or the Goodlife Gym is easy to access from any locations.
 Quality standards of the organisation.
 Brand value.
Weakness
 Company’s pricing policy is high.
 It charges more price as compare to its other competitors in market.
 Working hours of the gym is also restricted.
 After an hour outside facilities also closed at the gym.
Opportunity

 Business expansion opportunity.
 Product expansion opportunity.
Threat
 Competition is aggressive in market.
 Laws and regulatory compliances are strict.
PESTEL Analysis
PESTEL Analysis is a diversified tool used to assess all different external factors that
create an impact over the business operations of Goodlife Gym. This model comprises with
various factors like political, economical, social, technological, environment and legal factors
that create an impact over the organisation operations.
Political factor: Political factor comprises with various policies and strategies government
has framed to support the growth of small scale organisations in United Kingdom. As per
records it is projected that almost 99 % of the businesses operated in United Kingdom are
mostly small scale enterprises which has drastically supported government to promote the
economic growth of the country (Dorgo and Abonyi, 2019). Policies like licensing, economic
development, subsidy and various others played huge role in the growth and development of
small scale enterprises.
Economic factor: Economic factor involve economic development of country. Economic
growth of United Kingdom has played a huge role for the government to support small scale
businesses based in United Kingdom. Per capita income of people in United Kingdom is also
high that also supported people to move towards luxurious facilities and services like gyms
and other such services (Mongibello and et.al., 2016). Inflation also play negative role but it
can be stated that in UK inflation is also not much aggressive that has supported government
to grow its small scale sectors.
Social factor: Social factors involve various social aspects like culture, traditions and
different other aspects of society. In United Kingdom people are very active towards fitness
that also motivate to people in United Kingdom towards gym and fitness like yoga and other
facilities.

Technological factor: Technological factor involve all types of technological advancement
based in United Kingdom. Goodlife Gym can utilise all such technological development like
social media and other in favour of the organisation.
Environment factor: Environment factor involve environment protection and other
associated aspects. Company can also involve in various social responsibilities to interact
with customers about the services of organisation.
Legal factor: Goodlife Gym must follow all types of legal regulations applicable over the
organisation. This involve anti discrimination and various other laws applicable over the
organisation.
Organisation is charging the price that can be projected as in budget of the people
based on the per capita income group. Location of the gym is also easy accessible with all
types of public transport active in United Kingdom.
Pricing strategies
Pricing strategies are defined as strategy and tactics used to address the pricing issues
in the market.
Value based pricing: Goodlife Gym management follow the pricing policy denoted as value
based pricing. This strategy involve charging the money based on the value of services
customer has taken from the gym. It is projected that the prices Goodlife Gym charge is more
than its competitors in market (Qiu and Whinston, 2017). The basic reason behind such a fact
about the organisation is the organisation follows the value based pricing policy which leads
the organisation to charge such higher rates from its clients.
Competitive pricing: Goodlife Gym can implement the competitive pricing strategy in its
organisation. This involve on the basis of other competitors in market charge the best p[rice
that can attract customers towards the gym even in such an aggressive level of competition.
In this strategy gym will apply the best possible prices as compare to its competitors so that
customers will visit the organisation even in case of high and aggressive level of market
competition.
The above mentioned pricing strategies can be implemented in organisation.

Revenue streams
Goodlife Gym can implement the home services in which the organisation will also
provide a service of trainer that would come in the place of customers to trained them. Each
customer will get access of the personal trainer this would also attract customers towards the
organisation. Price play a huge role in attracting customers (Wang and et,al., 2017).
Irrespective of how much the per capita income is in country customers always go for the
cheaper options and most convenient option. Company can follow the stray of serving the
best services inb the most affordable price structure.
Recommendations and Conclusions
Recommendations
It is recommended that Goodlife Gym can implement the competitive pricing strategy.
In this strategy company would have to cut its prices but it would attract more customers
towards the gym services (Zhang and et.al., 2019). Home service of personal trainer would
also attract customers of organisation.
CONCLUSION
This report has projected about various analysis like SWOT Analysis that covers all
different strength, weakness, opportunity and threat of organisation. Competitive pricing can
be implemented by gym to attract the customers.

REFERENCES
Books and Journals
Dorgo, G. and Abonyi, J., 2019. Learning and predicting operation strategies by sequence
mining and deep learning. Computers & Chemical Engineering. 128. pp.174-187.
Mongibello, L. and et.al., 2016. Comparison between two different operation strategies for a
heat-driven residential natural gas-fired CHP system: Heat dumping vs. load
partialization. Applied energy. 184. pp.55-67.
Qiu, L. and Whinston, A. B., 2017. Pricing strategies under behavioral observational learning
in social networks. Production and Operations Management. 26(7). pp.1249-1267.
Wang, Y. Y. and et,al., 2017. Equilibrium analysis of markup pricing strategies under power
imbalance and supply chain competition. IEEE Transactions on Engineering
Management. 64(4). pp.464-475.
Zhang, Y. and et.al., 2019. Rapid granulation of aerobic granular sludge: A mini review on
operation strategies and comparative analysis. Bioresource Technology Reports, 7,
p.100206.