Analysis LA Fitness in England Essay Example | Topics and Well Written Essays - 2500 words

Analysis LA Fitness in England - Essay Example The main reason behind expansion of LA Fitness is that it wants to offer a wide range of services in the new markets in order to ensure the success of the business in the international market as well. The company plans to expand in England. Some of the driving points, which would enable the company to expand its business in the foreign markets and achieve success, are given below: 1. The increasing awareness related to the health issues as well as concern towards obesity and its effects amongst the people of England, will act as one of the key element in acceptance of the business operations of LA Fitness in the country. 2. Increasing wish of controlling and maintaining weight, avoiding various health issues and reducing daily stress influences individuals to visit the health clubs almost regularly. This is one of the main reasons behind LA Fitness’s business expansion plans into the international market. 3. LA Fitness provides services to meet the needs of the customers and o ffer them facilities for most of their health and fitness needs. This would help them in achieving success in their business operations in the international market easily. 4. The consumers would be offered different exercise regimes. Well differentiated service offered by the company would enable it in developing recognition in the new market. LA Fitness provides customized training services for meeting the personal needs of each and every member and gives them chance to choose the best suitable work out for themselves. Industry Analysis using Porter’s Five Forces Analysis would help in understanding the reason behind the expansion of the company in the chosen Country. Porter’s Five Forces analysis Porter’s five forces analysis would help in performing the industry analysis of health and fitness industry in England (Alkhafaji, 2003; Porter, 1980; 1998). Competition from the existing firms- There are many health clubs in England, which offer health and fitness se rvices to the customers. Thus the competition from the existing firms is very high (David, 1986). However, LA Fitness provides customer friendly services to its members. It is better than its competitors, as it treats its customers as family members and provide them good training. The fitness market is having a growth of certain percentage every year. The company has huge scope of achieving competitive advantage over its competitors by expanding the fitness clubs and hiring large number of employees in the new market, who would provide good services. Bargaining power of buyers- The bargaining power of the buyers is very high in England as there are a large number of fitness clubs offering services to the customers (Davis, 2008). There are a large number of alternative options for them. This increases their bargaining power. Moreover, 10 to 15 percent of buyers of the health clubs do not renew their membership as they do not find it interesting anymore. LA Fitness would have to advan ce its services by utilization of latest technologies in order to retain its buyers in the new market. Threat of substitutes: There are various substitutes for health clubs. People can consume healthy food; go for cycling or walking after eating. There are many individuals who play sports regularly in order to stay healthy. Some of them do labor work, which keeps them physically fit. Some visit doctors and maintain fixed diet in order to remain aware of the nutrients.