The Gym Group: Global Business Expansion Strategy and Analysis Report

This report provides a comprehensive analysis of The Gym Group's business operations, market position, and strategic recommendations for future growth. It begins with an overview of the company's background and then delves into a PESTLE analysis to assess the external factors impacting the business. The report then examines the company's competitiveness through a value chain analysis, evaluating inbound and outbound logistics, operations, marketing, and technology development. A detailed marketing analysis, including the marketing mix (product, place, price, promotion, people, process, and physical evidence), is presented to understand the company's approach to the market. The report also addresses brand value and human resource management objectives. Finally, it offers recommendations for the next 2-5 years, focusing on technological advancements and competitive strategies. The report concludes with a summary of the key findings and recommendations for The Gym Group's continued success in the travel & leisure industry.

Individual
Report

INTRODUCTION
It is required to analysis of market trends internally and externally to expand the
business at global level (Sung, Chang and Sung, 2016). On the basis of analysis assist
their strategy and executing operational policies for the operation of the company. This
report based on the spread out business activities that deal subject to the inaugurated
business functions and purpose to develop a strategy to execute the plan for a company
after evaluation of the all business elements. The elements consist of analysis of the
value chain, the PESTLE analysis as well as strategy for human resource management
as followed in The Gym group. The recommendations for the successful business
activities in the coming 2-5 years will be advised at the end of this project.
Background of the company
John Treharne, former England squash player in 2008, launched the Gym Group.
Since its beginnings in 2008, Bridges Enterprises has created and funded the Gym
group, which has engaged £ 17.5 million to the company. In 2008, first gym launched in
Hounslow and this was a flourishing hit and Gulldford and Vauxhall followed. They were
launched in the beginning of three years. This was positioning itself in top 20 of UK's
largest businesses has been some accomplishment and seems to be testimony to
everybody's hard work and effort at the Gym Group.
PESTLE Analysis
It is a tool which can help to analysis of external activities and identify those
factors which is changing and direct influence to other player in the travel & leisure.
Through PESTLE analysis get adequate information regarding to operating challenges
which is faced by The Gym group.
Factors Impact
Political  The long term sustainability and profitability can be
affected by the political factors. It is mainly conducting
activities into Travel & leisure in more than dozen
countries and bring out itself to different kind of political
environment and political system risks. To achieve
growth in a changing risks of political environment. The
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Gym Group follow the rules and regulation related to
travel & leisure which is working as safeguard and take
interest into customer for smoothly functioning of
business. It is focused on level of corruption because it
will influence by regulation in consumer service sector.
 The country's political balance and the nation in which
the goods are shipped also play an important role in
the effective operation of The Gym Group.
Economic  There are mainly defined about the economical growth,
inflation rate which is affected to company and their
strategy. Inflation rate of economy of the UK subject to
further nation’s in which export and import of the
different types of products influence to revenues that is
generated by The Gym Group.
 The Gym group apply different country factors like
growth rate, industry economic indicators like travel &
leisure industry growth rate, forecast amount to spend
on customer for improvement.
 In crease cost of equipments affects to international
market and increase the price of Gym that will show
negative impact so company find out other way to stay
long time in market.
Social  The culture of society and way of doing things
influence to culture of a company. Shared beliefs and
knowledge plays a important role in how marketers at
The Gym group will understand the clients in a
particular market. There are designing message as per
the requirement of Travel & Leisure industry
consumers.
Technology  A business did not focus only technological analysis of
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the industry but also concentrate on speed at which
technology interrupt that industry. The competitors of
The Gym group develop technology and supply new
equipments so it will impact on the Gym and their
customers. The cost structure also influence to Gym
and reduce number of customers (Harrison and Lock,
2017) .
Environmental  Improvement awareness between the global customers
in reference to profitability of a company. As per the
country The Gym Group adopted different
environmental laws and liability laws.
 Before enter into new market of any country it is
required to analysis of their environment. The Gym
Group to expand their business activities analysis
market trends and determine carefully that
environmental standards are required to conduct in
those markets.
Legal  The legal framework are not strapping sufficient to
secure the cerebral assets rights of the organisation.
The Gym Group before enter into the market it is
required to analysis such markets as it can lead to theft
of organizations.
 There are several number of legal strategies which is
important to followed by The Gym Group in reference
to export gym equipment from the global market. The
health and safeties laws of the various nation to which
the equipments exported.
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Evaluation of competitiveness of market (Value Chain Analysis)
 Inbound Logistics – In order to obtain, warehouse and spread the item, it is
essential to create powerful partnerships with providers. The Gym Group Plc can
face multiple difficulties in product design stages without analysing the inbound
logistics. Inbound logistics assessment needs a business to concentrate on every
element of conversion from raw resources to finished product.
 Operations - The significance of examine functional practices increases when
the raw material comes and the Gym Group Plc is prepared to manage and
exchange the materials into the final product. There are consisting of
manufacturing and service operations. It is essential to determining of operation
strategies in reference to increasing productivity as well as maximising the
efficiency and sure about the competitive success of the Gym Group Plc.
 Outbound Logistics – There are consisting of the operations that supply the
product to the customer by passing with several mediators. The Gym group plc
can determine and modify the outbound logistics to investigate inexpensive gain
sources and undertake their business development objectives. Due to timely
arrange optimal costs and product delivery processes keep a minimum negative
impact on the quality. It can help to increase customer satisfaction as well as
development opportunities.
 Marketing sales and services – At this stage, The Gym Group will mark the
advantage and several points of offered products to influence the clients that is
providing is better than competitors. To producing high quality commodity at
affordable costs with different features cannot develop value until The Gym
Group invests on the marketing and sales activities. This time sales agents and
marketers are playing significant role.
 Technology Development – Due to comply with manufacturing, distribution,
marketing and human resource management activities needed for the Gym
group to understand the value of technology development.
Marketing Analysis
Marketing Mix
Particulars Details
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Product The Gym group sale out their products into five different
categories and highly differentiated with several different
features. It is provided to customers to compete with
competitors and they are selling their products as traditional
design and practical for customer use (Andriankaja, and
et.al, 2016).
Place The Gym group sale out of their products with the help of
two marketing channels. Firstly sale out directly to their
customers and online store. Second, sale out to wholesaler
who sell to different retailers which are located all over the
company.
Price The pricing strategy to set price level that The Gym group
plc adopted is a competitive based pricing strategy. They
are focusing on the set of costs of some products which
either information is not available on competitors. They are
selling their products on higher price compare to
competitors.
Promotion Gym Group plc uses different types of promotion channels
to promote their products. They can use traditional media
where consist of publicity on television and radio subject to
improve the sales and marketing activities. They are using
online and social media promotion that are often
considered as low cost containing sources for promotional
activities.
People The people has working in customer service department in
Gym group plc and contacted by customers in case of any
issues regarding to product and direct clients for the
procedure and get solution of problem. There are people
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working with retail stores, suppliers and sales team.
Process The company assure about their products which is
available at retail stores and install systems to identify of
more items during to production. They are actively
interested for researching market opportunities in reference
to understand needs of customers.
Physical Evidence They sale out their products in a distinct colon packaging
that can help to easily recognise of products. It consist of
websites that is recognised as friendly interface that allows
customer for set high quality images taken from different
areas.
Brand Value
The brand value of The Gym group plc immensely over the last few years. On
the basis of the the report the Gym group plc have experience of current market where
they are dealing with different types of customers. They have about 15.1% market share
in 2012. The brand value of a business analysis through their strength and positive
aspects which is different from other and make unique. The value of brand regarding to
investors as well as owner of a business remain healthy (Badewi, 2016) .
Human Resource Management
Objective - The main objective of the Gym group plc to gain competitive
advantage at international market. In respect to company adopt a number of regulations
and policies. The firm is making attempts to phase off its goods and has been
successful as they have launched various varieties of Gym Group plc products and
have achieved financial success at the market.
Function – The Gym Group plc has been conducting their function in different
countries but mainly United kingdom. The company has initiated in functions where they
grow, production and shell out equipments. Their various activities operate together as
an integrated effort with a shared goal of achieving the goals and plans of the company.
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Corporate and Regulatory Affairs – The Gym group plc is a reputed company
which is operating as an continuous organization. They are conducting a number of
regulative and corporal affairs in reference to guarantee their stakeholders. These are
directly and indirectly effecting to business functions.
HR strategy -
Recommendations for next 2-5 years
It is one of the top most companies in travel & leisure which is facing a lot of
competition. In respect to arrange their position as well as brand value in the
international market that time need to develop their technology in effective manner. In
respect to compete with rive company Pure gym, Gym plc required to make progress in
their technology. Gym plc should invest resources in reference to supply a better
experience for their customers by means of the advanced technologies. It will show
effect in positive and negative way on the clients regarding to company and provides
their products to spread out their reliability (Ferreira and Németh, 2018) .
CONCLUSION
As per the above discussion it has been concluded that different types of number
of elements that has affect to the Gym Group plc. There are recognised that the Gym
group plc is one of the biggest company who is opened different types of health club
and get position into top 20. Due to expand business at global level analysis of external
activities and know that how it is affects to the company. Apart from the report,
determined the competitiveness of the equipment market. Additionally, a number of
recommendations have been provided guidance for the improvement of an
organisation.
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REFERENCES
Books and Journal
Sung, Y .K., Chang, K. C. and Sung, Y. F., 2016. Market segmentation of international tourists
based on motivation to travel: A case study of Taiwan. Asia Pacific Journal of Tourism
Research. 21(8). pp.862-882.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Badewi, A., 2016. The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management. 34(4). pp.761-778.
Ferreira, O. P. and Németh, S. Z., 2018. How to project onto extended second order
cones. Journal of Global Optimization. 70(4). pp.707-718.
Andriankaja, H. and et.al, 2016. A framework to design integrated product-service systems
based on the extended functional analysis approach. Procedia CIRP. 47. pp.323-328.
Online
PESTLE Analysis. 2019. [Online]. Available through: <http://fernfortuniversity.com/term-
papers/pestel/nyse4/6902-the-gym-group-plc.php>
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