Business Innovation Report: Goodlife Gym Market Analysis

This report provides a comprehensive analysis of Goodlife Gym's business innovation, focusing on market analysis, pricing strategies, and revenue models. It examines the gym's competitive landscape within the Australian market, considering factors such as market size, growth rate, and consumer demographics. The report details Goodlife Gym's pricing strategies, including value-based and competitive pricing, and explores various revenue streams, such as home services. Recommendations include implementing competitive pricing and offering personal trainer home services to attract customers. The report concludes by summarizing the findings and emphasizing the importance of creating a strong brand image through quality services and affordable pricing. The report references multiple academic sources to support its 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.
Market size of the gym sector in current time is projected as ASD $ 256 million in the
previous financial year (Dorgo and Abonyi, 2019). The market size denote about the wide
business scale. The sales turnover emphasis about the product demand in market. Good life
Gym is aiming to take competitive advantages by making the suitable strategies so that the
huge product demand in the market can be explored. The growth rate of the sector is also
denoted as 7% which indicate that company contain effective growth opportunity in the
sector.
Company has also analysed the demographics of Australia. The per capita income of
people based in Australia indicate the people over in Australia can afford the luxury life style.
Gym is also a part of the luxury life style of people based in Australia (Mongibello and et.al.,
2016). The services of company can easily affordable for the people as per the income base
of people in Australia that allows them the paying capacity to cope up with the charges of
company.
Company will face heavy competition from other competitors like Exercise and
Sports Science, Australia Faculty of Musculoskeletal Medicine and many other gym sector
organisations that already established in the market . AS the heavy market demand attract
aggressive level of competition due to heavy demand. Company will face competition from
all the well established brand along with the small organisations in Australia.

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 Australia.
Pricing strategies
Revenue Model
Company will follow the revenue model to make proper strategies in order top take
competitive advantages in the market. Company will follow the guidelines given in Asset
light revenue model to meet its different business objectives. This model guided company to
charge the low fees against the best quality gym services in Australia (Qiu and Whinston,
2017). This strategy will allow the organisation to take competitive advantages in market by
attracting potential customers in market. Revenue model will guide the organisation to meet
its different objectioves for business by taking the competitive advantages in market. If the
organisation is serving the best quality services in the best prices all customers would prefer
the services of Good life Gym.
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. With the support of revenue model
company can expand its business at all across the Australia. With the support of revenue
model company get to channelise all its strategies in such a way that company will get to take
competitive advantages in the market. It is recommended that at the initial stage of business
company must give priority over serving the best quality services at the most affordable price
so that brand image can be created of company.
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.