Strategic analysis of the internal and external business environment

Strategic analysis of the internal and external business environment

Background company information  

Since its inception in 2000, SAVAGE 7 FITNESS is already transforming lives across San Francisco. Savage 7 Fitness is a medium and small enterprise in Toronto Mississauga, Canada, with 20-30 people, comprising ten managers, five entrance offices, and 10+ trainers. Savage 7 contains plenty to choose from, and individuals of all generations may be found around any time. However, the Gym has changed significantly throughout the years, if not millennia. What is today about jogging, lifting weights, and becoming in shape was once about surviving. 

Exercise wouldn't have been an option back then; hunters and gatherers must have been in shape to live. Our everyday tasks altered dramatically when our humankind's culture shifted to cultivation. Complex movements like leaping, walking, and mountaineering were less common. As a result, things had to improve, but it took a long time to establish the gyms we know today. 

The purpose of establishing savage 7 

Underneath the direction of the co-founders, the club's goal was to provide health and fitness exercise solutions to persons of all ages and financial levels. Gym First classified the programs as quickness, endurance, speed, and training programs. 

The facility provides general health treatments, such as relaxing, cycling, climbing, and aerobic activities, to ensure optimal delivery of services. 

This complied with the requirements for weightlifting, increased strength exercises, sprinting, and asymmetrical training. 

That foundation was opened to capitalize on developed marketplace business prospects and faced no competitors, and there were no companies providing comparable activities. 

As immediately as it was founded, and information movement was initiated to meet the people and communicate the concept to them, employing advertisements, social media sites, advertising schemes, gifts, specific marketing operations, and communication services. The outcomes were favorable. A considerable number of clients began inquiring about and registered for the offerings. 

Marketing strategies 

The availability of instructors who engage with the savage 7 fitness program may become the Gym's main marketing factor. Because of its success, the method is gaining traction across the country. As a consequence, it really should draw a sizable number of individuals who desire to give it a shot and see what happens. Overall, there is significant room for growth in personnel fellow humans and some incremental profit. This example presentation will analyze the existing market condition, develop the Gym's strategy, and offer a success projection. 

Situation analysis 

The fitness market in Canada is sizable but far from crowded. Wills et al. (2021) estimate that 58 million Canadians with an aggregate age of 40 visits a gym or fitness club annually, producing $21.8 billion in annual revenue. The amount comprises almost 20% of the national total, implying that there is room for additional expansion. Wills et al. (2021), on the other hand, says that the industry's growth pace has halted and relates this to unnecessarily high membership fees (170). Their key demographic appears to be beginning adults with significant discretionary money. They desire to enhance their health but are price-conscious, focusing on the cost-to-observed impact ratio. They will approach a gym since there are few other options for fighting. 

Unfortunately, rivalry amongst gyms in the neighborhood is fierce as they compete for the same existing customers. They aim to add numerous appealing aspects, such as family discounts or highly sophisticated hardware. They pay special consideration to instructors, who are an important aspect of a gym's appeal and may develop a personalized client base. Having said that, there seems to be no Savage 7 in the region, which poses significant potential. 

These current consistent growth tendencies in the Canadian economy add to the situation's optimism. In 2019, the Price Index rose by 2.3 percent, showing stable and regulated inflation and economic advancement. Consumption is anticipated to rise in tandem, rendering them more inclined to contemplate an expenditure. 

Savage 7 market strategy  

Savage 7 is a somewhat alternative strategy to regular gyms that caters to a completely different demographic. According to "The Business of Savage 7," approximately half of something like the company's consumer base is between the ages of 25 and 34, with more than half earning $150,000 or more annually. As a result, the Gym would promote to that client base and leverage the strength of its brand to acquire consumers who have no other options, portraying itself as an affordable neighborhood fitness choice. 

According to the primary Savage 7 concept, the company's product range will consist of an exercise routine under the observation of an instructor, with both the value proposition comprising of its sophisticated and highly successful character. Expensive charges might be warranted because of the distinctive proposal and indeed the high wealth of the consumer population. Having also said workers of the organization will earn steep reductions or would be able to utilize the services for free (Council, 2020). Throughout five years, the fitness center should have a consistent population of three thousand regular visitors. 

As a brand, Savage 7 employs an information dissemination strategy, collaborating with numerous gyms around the country and enabling them to use its programming. Having said that, the institution envisaged in this concept would be a straight wholesaler, providing guests with health care services. Consequently, despite Savage 7 B2B strategy, the workplace gym will follow a B2C model. It will employ a multi-pronged marketing strategy that includes marketing strategies, an internet representation, and rebranding (Council, 2020). The very first two can inform targeted customers about the launch of a newer gym so that they can still decide whether or not to visit. Savage 7  branding will indeed be utilized as the primary differentiator to encourage clients to pick the facility over its competitors. Because of its large following on various online media platforms, the company's internet presence may also help enhance the Gym's outreach. 

Current plan  

• Email Savage 7 about becoming an affiliate: $10,000 in 2 weeks. Throughout this step, the assessment will take the form of a study of the industry's answers, with favorable feedback acting as a sign of success.
• Commence initial advertising with CrossFit: $15,000 in three months. Customer input, especially on the Rise of social media, would be used to assess the party's campaign efficacy.
• Employ gym instructors for $15,000 for two months. The firm's HR division may handle sections of this procedure in collaboration with both the Gym's administration and apply its preexisting surveillance and assessment methods accordingly.
• Acquisition and installation of required necessary material: $10,000, 2 weeks. The merger and acquisition division will monitor the procedure, and gym leadership will collect and analyze consumer feedback after utilizing the tools for future reference.
• Finish the modifications and operate the Gym in two weeks: $5,000. During this period, the administration will endeavor to identify and fix any possible concerns even before the building opens. Following that, it will receive and act on client input on areas they loved and disliked.

 Swot Analysis 

A SWOT analysis examines a potential company's characteristics, vulnerabilities, possibilities, and challenges. The measurement system aids in understanding one's strategic skills as well as investigating the influence of external factors environment (Dadzie, 2019). A careful examination of the venture's advantages and disadvantages will help it to gain a competitive edge. 

Strength  

• A complex will recruit young individuals as well as individuals who have recently relocated to the region.
• A wide range of services
• Feasibility of combining exercise and swimming
• Relaxation treatments are available.
• 
  
• Placement is ideal
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• Special offers for visits home and repeat customers
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• Workers who are kind and have the successfully generated

 Weakness 

• It is doubtful that regular users of well-known gyms and sporting facilities will select our facility.
• There is no website.
• There is no way to signup digitally.
• There are no available parking spaces.

 Opportunity  

• We may get into an agreement with the firm that owns the adjoining parking lot and negotiate for some free car park places for frequent clients.
• Perhaps could engage an IT specialist to develop a webpage or, at the very least, Instagram and Facebook profiles for the institute in the coming years.
• The company could start new exercise sessions based on client demand.

 Threats  

• There might be a lot of personnel movement.
• Participation is low, particularly during vacations.
• Scarcity of funds
• It is possible that technology will be destroyed or destroyed.
• Whether other new businesses open locally, competitiveness may rise.

 Evaluation 

After assessing the current strengths and limitations, as well as future prospects and dangers, I can determine that the business endeavor should be sustained. If the facility flourishes in the best possible situation, the money invested in it will be repaid quickly (Dadzie, 2019). Additionally, the training facility will be able to generate a large profit. If any unanticipated issues arise in the future, the earnings will be sufficient to address the challenges while being successful. 

Porter’s Five 

This business has little competitive competition. Because they are limited to smaller rivals, and while Virgin Engaged costs are the industry norm, no significant companies may encourage annual subscription decreases. Planet Fitness (their primary competitor in Ontario) has a very similar pricing structure and does not provide as much choice or accessibility in terms of geographical location and amenities (Grundy, 2019). Nevertheless, due to expanding product and service trends, this business has a strong opportunity for growth. 

Because the marketplace for wholesale elevated free weights is small, vendors may provide affordable rates. There have been, nevertheless, a restricted number of gyms to which they may advertise their goods (Grundy, 2019). Thus, a cooperative connection is developed with distributors, and some negotiating can start happening. Negotiating knowledge is limited in this business; buyers' negotiating leverage is more successful in larger gyms and clubs. Their centralized division provides sufficient services to enable fundamental management and specialization in certain supplies, as well as to concentrate. 

Pestle analysis 

The corporate plan is to build a gym for all ages. The Gym is situated in the Ontario neighborhood. The Gym would provide everyone with an enjoyable culture and clubs and organizations such as an Instrumentation Hall with numerous Gym Equipment and supplies and competent exercise sessions, Aerobics lessons, and trying to dance lessons. 

Because most buyers in this market are parents with children aged 5 to 12, the pricing must cater to all economic statuses to generate customer satisfaction along the value chain. Furthermore, Ontario's minimum salaries do not go below BD 300. Moreover, the club provides consumers with various incentives, except when a youngster registers at the Gym, they will receive a backpack, T-shirt, plastic bottle, and headgear. In addition, if more than one member within the same household registers at the Gym, the buyer would deduct the amount. 

Conclusion 

The fitness center is a profitable venture. As previously said, Canada has a large demographic, with an increasing number of children facing lifestyle issues at a young age. The administration has done nothing. The results might be disastrous. It is, nevertheless, an excellent commercial possibility. According to the preceding assessments, the organization will develop since Canada have a significant discretionary expenditure. With diverse revenues, the economy has been functioning nicely. Furthermore, the fact that the company intends to benefit from the generosity of its suppliers and customers is positioned to gain its development.

References

Council, Y. E. (2020). Council Post: 5 Steps To Evaluate Your Company’s Digital Marketing Strategy. Forbes. https://www.forbes.com/sites/theyec/2012/10/13/5-steps-to-evaluate-your-companys-digital-marketing-strategy/?sh=3d115474259a 

Dadzie, M. E. (2019). Operations plan for Gym Ike Fitness Centre. Air.ashesi.edu.gh. https://air.ashesi.edu.gh/handle/20.500.11988/460 

DMI. (2018). How to Optimize Your Organization’s Marketing Strategy | Blog | Online Digital Marketing Courses. Digital Marketing Institute. https://digitalmarketinginstitute.com/blog/how-to-optimize-your-organizations-marketing-strategy 

Grundy, T. (2019). Rethinking and reinventing Michael Porter’s five forces model. Strategic Change, 15(5), 213–229. 

Wills, J., Samli, A. C., & Jacobs, L. (2021). Developing global products and marketing strategies: A construct and a research agenda. Journal of the Academy of Marketing Science, 19(1), 1–10. https://doi.org/10.1007/bf02723418