Strategy and Innovation Analysis: Real Fit Centre's UK Market Report

This report provides a comprehensive analysis of Real Fit Centre, a UK-based fitness company. It explores strategic options such as low-cost trails and social media marketing, crucial for customer acquisition and brand promotion. The report delves into VRIO analysis, evaluating the company's resources and capabilities, competitive advantages, and industry evolution. It also includes a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats within the competitive UK fitness market. Furthermore, the report considers the impact of external factors through PESTLE analysis, providing insights into political, economic, social, technological, legal, and environmental influences on Real Fit Centre's operations and strategic decisions. The report concludes with an overview of the competitive landscape, highlighting key competitors and the need for innovative strategies to maintain a competitive edge in the dynamic fitness industry.

Strategy & Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategy and innovation both are part of the organization's operations. Businesses are
using these both terms in their particular business environment to grow in the market. There are
various strategies are employ by the companies in their business environment to improve the
performance of the organizational activities. Innovation is also very necessary in any type of the
companies to gain high customer attention than the competitor's in the market. These both terms
are very useful for the companies to gain their decided business goal in the specific time period.
Marketing strategy is also comes under these terms where companies develop their own effective
marketing strategies to build high customer base in the market. These are also important in the
gain competitive advantage in the particular market segment. There are included the two major
strategic options for the REALFIT CENTRE.
MAIN BODY
About REALFIT CENTRE
Real Fit Centre is fitness company which was set up in July 2014. The major aim of the
company is to provide high quality training to the people to always be fit, strong and healthy.
The Real Fit Centre basically offers three major services; First one is Real Fit sessions, second is
Result accelerator, and lastly third one is Personal training (Gonçalves, Meireles and Carvalho,
2016). This company currently selling the fitness products also to the people. Now company
running on the progressive path in the United Kingdom's fitness industry.
Strategic Options
There are two major strategic options for the Real Fit Centre is; low cost trails and social
media marketing. These both will very helpful for the company to make strong customer base in
the fitness industry of UK. These both strategic options are explained below for better
understanding;
1. Low-cost trails
Low cost trails and free trails are major strategies in the fitness industry which many of
the fitness companies are employed in their particular fitness gyms or centres. In which fitness
companies are providing low cost trail offer to the customers in the beginning stage. Companies
are take minimum charges from those customers which first time face the gyms and fitness
centres (Leih, Linden and Teece, 2015). This step is necessary for make a common customer into
a loyal customer. Join fitness centres is very hard for the new customers, because its give pain in

the starting stage, but after joining and day by day practices the fitness be a part of the customer
habit. So, this strategic option company need to employ in their fitness centre to attract many
customers in market. Customers are crazy for the taking free or low cost trails in the gyms and
fitness centres for self-satisfaction. In this case if customers enjoy the company's services during
trail session then they also buy then long-term membership of the Real Fit Centre. No one of the
customers are agreed to pay high cost in the beginning. In this case company need to give offer
like customers needs as possible. This will help to the company to gain huge customer's attention
in the fitness market (Dedehayir, Mäkinen and Ortt, 2018). For offer to the company's exclusive
fitness services like; guidance of highly qualified trainers and coaches in the new market called
Birmingham the company necessarily need to employ this strategic option in their business
environment to build effective and strong customer base in this new market segment.
2. Social media marketing
This is another useful strategic option for the Real Fit Centre to promote their services in
the every type of the fitness market. Company need to professionally maintain their social media
pages like; Facebook, Instagram, Twitter to stay connect with people which truly think about the
fitness. Currently company working in the London, but for make company as one of the popular
fitness brands in the United Kingdom, in this case Real Fit Centre need to expand their business
in the new market segment Birmingham. For provide the exclusive fitness training to the
customers in the new market, the company need to take actions for promote their products and
services through social media marketing. This strategic option will very productive for the
company to attract the people in the Birmingham fitness market. Company need to make some
fancy and cool fitness ads for posting them on the social media pages. These ads really impress
the customers (Sarjana, Kartini and Rufaidah, 2018). Currently many of the successful
international brands are using this for their brand promotion, because nowadays the social media
marketing is become one of the most popular ways to promote any products and services in the
market. Through this the Real Fit centre able to aware people about own exclusive fitness
services in the local market.
VRIO Analysis
VRIO is an analysis framework of business which is useful in analyse resource and
capabilities, competitive advantage, and also industry evolution and change. This is includes
framework of four question; The question of-Value, Rarity, Imitability and Organization.

 Resource and capabilities
The Real Fit Centre has various resources and capabilities in the fitness industry of the
United Kingdom which described below;
1. Value: The Real Fit Centre has modern equipments in their everyday gym. The company
maintaining the specific exercise schedule for all clients. It also sells the fitness products
also to the clients according to their client's body needs (Gilchrist, 2016). Management of
the company is always work on the making effective dieting plan for the people.
2. Rare: Company is not only providing quality fitness, it is also made a positive and
happier atmosphere in their fitness centre to encourage and inspire all clients to be fit,
healthy, and strong. This fitness centre has highly qualified coaches which able to
provide and teach effective fitness methods to their respective clients.
3. Imitability: In the fitness industry there are fitness centres are need to use productive
training sessions in their respective centre. In which the Real Fit Centre is already has
skilled fitness trainers which are able to give specific fitness training to the company's
clients.
4. Organization: Company providing suitable exercise facilities to the clients, like; indoors
and outdoors exercise space etc. On the social media platforms of the company; like:
Facebook, people are dropping very positive comments and reviews on the services of the
Real Fit Centre (Peppard and Ward, 2016). These positive reviews and comments of the
people are very helpful in the gain high goodwill in the United Kingdom's fitness
industry.
 Competitive advantage
It is a local fitness company which is located in London, UK. Currently there many other
fitness companies are also working with the Real Fit Centres in the UK's fitness industry as
competitors. On this time the Pure Gym is the most popular and largest fitness centre in the UK
on the basis of clients or membership. So, the Pure Gym is one of the biggest competitors of the
Real Fit Centre, because this gym centres has operating 172 gyms in the United Kingdom. No
one other fitness centre has this count of gyms than Pure Gym. In the list of Real Fit competitors
the next one is David Lloyds club. This fitness centre is also very popular in the fitness industry
of the United Kingdom. Then the Gym Group plc is another big competitor of the Real Fit
Centre after Pure Gym and David Lloyds club. This is currently operating 169 gyms within the

United Kingdom (Sull, 2015). So, this market competition is very challenging for the Real Fit
Centre. To face this challenge the company needs to use some effective marketing strategies in
their business environment. Company also responsible to offer some exclusive fitness services to
the customers or clients to gain high customer base in this competitive market.
The Real Fit centre also need to hire some extra ordinary fitness trainers in their centre
which help to the company to gain competitive advantage in the fitness industry of United
Kingdom. The innovation is very necessary too which company need to use in their business
environment to develop effective fitness methods for the clients or customers. Food is very
important part of the fitness industry. In which management of the company need to prepare
productive everyday food menu for each client according to their body efficiency (Pacheco,
Alves and Liboni, 2018). Company also responsible to aware about the latest fitness gadgets
which help to the clients to be fit, strong and healthy in every condition. Use of the modern
technological fitness equipments and gadgets really attract to the people. These all
implementation are very helpful for the company to gain competitive advantage in the market.
 Industry evolution and change
The United Kingdom Fitness industry was popular when locals are become some literate.
In the 70s some Hollywood stars are really changed the view of the UK's people about health
care and fitness. People get inspiration of the fitness after watching the fit and healthy hero in the
cinema, because hero's body muscles was very impressed to the people. Then locals was started
to learn about the fitness and additional healthcare. Many people was started to joining personal
training coerces and also attended physical education classes to be fit and healthy. Many of the
fitness centres was started on that time, and other side people was show their interest too in the
fitness by join these centres, but from that time to date the UK's fitness industry is not much
popular. Still, only the 12% of the population of the United Kingdom has buyer of the gym
membership across the country (Huang, Rand and Rust, 2016). There are lots of new
technological tools of gyms and fitness centres are currently come into the market. So, the use of
traditional fitness methods is decreasing day by day. People are still need to understand value of
the fitness in the United Kingdom, and if once people are become encouraged for the fitness,
then the fitness industry of the United Kingdom will become popular as well.
SWOT Analysis

The SWOT Analysis is helpful to consider four major internal terms of the Real Fit
Centre;
Strength
The company has some exclusive fitness methods which effectively make fit to the
clients. Company offers some highly qualified fitness trainers with productive dieting plan to the
customers. Management of the company is very friendly for the all type of the customers. The
fitness centre's atmosphere is also very positive which totally encourage to the clients to always
be fit, strong, and healthy.
Weakness
The weakness is the company not has sufficient fitness equipments to deal with the rush
period of the centre. The expansion process of the company is also very slow in the comparison
of competitors.
Opportunities
The company has maintaining the several programs of fitness which are specially
designed for the company clients (González-Moreno, Triguero and Sáez-Martínez, 2019). This is
one of the big opportunities of the Real Fit centre. Company also prepared specific fitness
schedules for each customer to give them personal training sessions.
Threats
In the fitness industry of the United Kingdom currently has huge competition. The Real
Fit Centre's biggest competitors are Pure Gym, David Lloyds Clubs, and the Gym Group plc in
the UK fitness market. In which the company need develop such innovative marketing strategies
in their business environment to deal with this market competition.
Risks and Issues
According to the PESTLE analysis the management is able to know which factors can
impact the business environment of the Real Fit Centre, and what kind of risks and issues are
comes under the business operations.
1. Political factor: The political factor is impact positively to the Real Fit centre, because
the government of the UK is very supportive for those organizations which work for the
fitness. UK's government also many times run their self-made fitness campaigns in across
the nation to make every people fit and healthy. In that case company is able to take huge
advantages from the government fitness and health policies.

2. Economic factor: The United Kingdom is one of the richest countries in the world. So,
the economic conditions of the country is very good. The people are able to afford the
gym and fitness centre charges (Tehrani and Jin, 2018). Now the gym comes under the
daily life activities in the UK. People are also literate in the UK and completely
understand the value of healthcare and fitness. In that case it is also helpful factor for the
company to gain high profit from the market.
3. Social factor: Beliefs and attitude of the people is really impacting the business
environment of the company. People are accepted the fitness in their own culture and also
understand the all terms of the health and fitness. Company need to aware them more
about the fitness and self services. Then company will able to take advantages from this
factor.
4. Technological factor: The UK is also a developed country which currently has using
high technological tools and equipments in every industry. This factor is highly
impacting the business environment of the Real Fit Centre, because the company always
need to implement such modern technological fitness equipments and gadgets in their
centre to gain high customers than competitors on the market.
5. Legal factor: In the legal factor the company need to follow or adhere the “anti-trust
law” in their all fitness activities. There are many other law are also the Real Fit Centre
need to adhere in their business environment, like; health and safety law, discrimination
law, consumer protection law, etc. These laws are very necessary for the company to
make ethical business environment in the fitness industry.
6. Environmental factor: There the many environmental laws are also passes by the
government of the United Kingdom which then Real Fit Centre need to adhere during
their business operations (Amend, 2018). These laws and standards says companies or
businesses need to avoid such attempts which put the bad impact on the environment. So,
the Real Fit Centre also need to care for the environment during their business operations.
Recommendations
In the both strategic options the Real Fit centres must take the Social Media marketing,
because it is very helpful for the all type of the businesses to promote their products and services
to the decided market segment. The low cost trial strategy is good but not much effective then
the Social media marketing. Low cost trail influencing minimum number of the people to take

the long-term membership, but the other side the social media marketing is very powerful at
influence to the people to take the long time period membership in the fitness centre. The social
media marketing is too much good for the company, because currently everyone on the social
media platforms. So, it is easy for the company to reach their informative ads to the all people.
Through this the company is also able to aware large number of the people about their exclusive
services in the fitness market.
CONCLUSION
It can be concluded that the Real Fit Centre need to choose social media marketing in
their business environment to promote company's exclusive and effective services in the market.
The company ned to develop and innovate such productive business strategies to deal with the
competitor's of the UK's fitness industry. There are also some major external factors existing
which truly impact the business environment of the company. The company always need to use
the latest technological tools and gadgets in their centre to gain high competitive advantage in
the fitness market. It also included the major strength, weakness, opportunities, and threats of the
company which shows the internal environment of the company. The company has some highly
trained coaches which has exclusive methods of fitness, and these are really helpful to the Real
Fit Centre to grow in the United Kingdom's fitness industry.

REFERENCES
Books and Journals
Gonçalves, C., Meireles, P. and Carvalho, M. J., 2016. Consumer behaviour in Fitness Club:
study of the weekly frequency of use, expectations, satisfaction and retention. The Open
Sports Sciences Journal. 9(1).
Leih, S., Linden, G. and Teece, D., 2015. Business model innovation and organizational design:
A dynamic capabilities perspective.
Dedehayir, O., Mäkinen, S. J. and Ortt, J. R., 2018. Roles during innovation ecosystem genesis:
A literature review. Technological Forecasting and Social Change. 136. pp.18-29.
Sarjana, S., Kartini, D. and Rufaidah, P., 2018. Reputation development strategy for corporate
operating in industrial estate. Academy of Strategic Management Journal. 17(2). pp.1-
11.
Gilchrist, A., 2016. Industry 4.0: the industrial internet of things. Apress.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Sull, D., 2015. The simple rules of disciplined innovation. McKinsey Quarterly. (3). pp.86-97.
Pacheco, L. M., Alves, M. F. R. and Liboni, L. B., 2018. Green absorptive capacity: A
mediation‐moderation model of knowledge for innovation. Business Strategy and the
Environment. 27(8). pp.1502-1513.
Huang, M. H., Rand, W. and Rust, R., 2016. Don’t do it right, do it fast? Speed and quality of
innovation as an emergent process.
González-Moreno, Á., Triguero, Á. and Sáez-Martínez, F. J., 2019. Many or trusted partners for
eco-innovation? The influence of breadth and depth of firms' knowledge network in the
food sector. Technological Forecasting and Social Change. 147. pp.51-62.
Tehrani, N. and Jin, Y., 2018. How Advances in the Internet of Things (IoT) Devices and
Wearable Technology Will Impact the Pharmaceutical Industry. Res. Anal. J. 4.
pp.1530-1533.
Online
Amend, P. 2018. The Fitness Industry Is ‘Innovative at Its Core’. [Online]. Available Trough:
<https://www.ihrsa.org/improve-your-club/the-fitness-industry-is-innovative-at-its-
core/#>