Case Study: Synopsis of Town Sports International Holdings Analysis

This case study synopsis focuses on Town Sports International Holdings (TSI), examining its evolution from a sports-focused business to a modern fitness industry player. The analysis highlights key decisions made by TSI, including the introduction of various membership options like Passport, Core, and Restricted memberships, to boost sales and revenue in a competitive market. The study addresses challenges related to sales, technology advancements, and marketing. It also explores concepts such as ancillary fee-based services, personal training, and deferred revenue. The conclusion emphasizes the importance of effective marketing and sales strategies, along with the need for innovation to maintain a competitive edge. The recommendations suggest that TSI should adopt robust sales and marketing plans, develop new club formats, and constantly innovate to attract and retain customers in the dynamic fitness industry. The case study uses references to support its findings and recommendations.

Running head: SYNOPSIS OF TOWN SPORT INTERNATIONAL HOLDINGS
Synopsis of Town Sports International Holdings
Name of the Student
Name of the University
Author note

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SYNOPSIS OF TOWN SPORT INTERNATIONAL HOLDINGS
Synopsis of the case
Town Sports International Holdings was established for the love for sports rather than
as the modern fitness industry. It was business of sports dealt with Squash and there were
different names that were suggested by different individuals. However, in the mid 80’s
squash were not profitable business and then Giardina as well as Tascher helped in surviving
the company by proper introduction of new technologies and the company were renamed
again to Town Sports International Holdings. TSI decided to move forward with the
implementation of strategies related to expansion and efficiently accomplish the goals of the
company by being customer centric in nature (Mouton, 2015). Lastly, the main motive of TSI
was to provide healthy lives to the individuals who will be becoming a part of the
organization through different exercises as this would help them in competing in the industry
as well.
Relevant information about the problems faced or the decisions taken by organization
There were different decisions that have been taken by TSI in order to increase the
amount of sales and revenue in the competitive industry. TSI took a decision of offering their
members different options of membership that are as follows:
 Passport wherein it was the most expensive membership option that provided access
to the members of the respective organization in different clubs
 Core membership wherein the members can visit of the clubs anytime and package
cost was low than the passport membership scheming (Le, Kara & Moura, 2016)
 Restricted membership is the service wherein the members will be restricted only for
monthly basis services

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SYNOPSIS OF TOWN SPORT INTERNATIONAL HOLDINGS
There are different problems that can affect the reputation of the company are
regarding:
 Sales are one of the factors wherein it can have great impact on the reputation
of the company. Proper advancement in technologies is required or this can
have negative impact on the company (Lubbe, Modack & Watson, 2014).
 Marketing is another factor wherein the marketing team has to properly work
in order to attract the customers for the fitness packages that are offered by the
company.
Theories, concepts and applications
Ancillary fee based services wherein the total amount of fees is broken into several
other charges that are considered as ancillary charges in TSI. It is subordinate in nature as
well.
Personal Training wherein the individual customers are provided with different kind
of packages those are available in different costs as well.
Deferred Revenue is the payment that has been received by the company in advance
wherein the company is not delivering the goods and services (Morosan, 2014).
Conclusion
Therefore, it can be inferred that TSI needs to implement different strategies related to
marketing as well as sales as this helped them in increasing the competitive advantage in the
competitive market. The schemes introduced by TSI helped them in attracting the customers

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SYNOPSIS OF TOWN SPORT INTERNATIONAL HOLDINGS
and this helped them in creating different levels of schemes for different individual customers
as well.
Recommendation
Therefore, it can be recommended that proper sales and marketing strategies have to
be adopted by TSI, as this will help them in attracting the customers. TSI have to innovate
new strategies in their company in order to compete in the market and prepare different club
formats to attract more number of customers as well.

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SYNOPSIS OF TOWN SPORT INTERNATIONAL HOLDINGS
References
Le Floch, C., Kara, E., & Moura, S. (2016). Pde modeling and control of electric vehicle
fleets for ancillary services: A discrete charging case. IEEE Transactions on Smart
Grid.
Lubbe, I., Modack, G., & Watson, A. (2014). Financial Accounting GAAP Principles. OUP
Catalogue.
Morosan, C. (2014). Toward an integrated model of adoption of mobile phones for
purchasing ancillary services in air travel. International journal of contemporary
hospitality management, 26(2), 246-271.
Mouton, D. J. (2015). Changing the issue in dispute during strike action (Doctoral
dissertation).