Essay Example on A Competitive Edge Improvement for Planet Fitness









In Today's Market In 2016 statistics showed that there were 36 540 fitness clubs in the United States putting this country at the forefront of the health and fitness industry Statista 2017 Additionally people have been reported to go to the gym for various reasons including to improve health to lose weight to look and feel better to tone up and for social reasons Linse 2014 With so many health clubs in the United States how does one choose one that suits their needs Planet Fitness is known for its affordable prices and while the savings is a big attractor to gym novices and enthusiasts alike is that enough to set them apart Description of Business Service Planet Fitness is a fitness center that opened in the summer of 2015 The facility holds a no judgment philosophy Schlossberg 2015 and caters to those may not be as fitness forward as others Daft 2016 states that a mission is the overall goal for an organization and that organizations reason for existence Planet Fitness mission statement is to provide a clean safe welcoming environment for anyone who walks through our door Planet Fitness n d and they set out to do this every day Rationale for Needed Improvements While Planet Fitness has features that can catch anyone's eye the overall service is nothing that sets the organization apart from any other gym They certainly have a lower cost with their memberships starting at 10 but there is nothing cutting edge about the facility 

Yes they provide pizza every Monday and candy at the front door but is this enough to give it a competitive edge amongst other gyms This competitive edge or advantage is what sets an organization apart from others to meet customer or client needs Daft 2016 The competitive edge can be found in the industry s structure According to Michael Porter 2008 industry structure drives competition and profitability Porter 2008 states that there are five forces that shape competition a threat of entry the power of suppliers the power of buyers the threat of substitutes and rivalry among existing competitors In the health industry it would seem that the strongest competitive forces would be the threat of new entrants substitute products or rivalry with other gyms It is clear to see that the gym attempted to use price and junk food as a competitive advantage but I think they should play up to what other gyms offer For example although most gyms are higher in price they offer a variety of fitness classes actual one on one training healthy foods swimming pools and the list goes on As a current member of Planet Fitness I was very disappointed that the group classes were very small in size and there were no personal trainers Planet Fitness has the potential to remain a top fitness facility but they will have to strategize to move with the times Detail of the Competitive Advantage Proposed There is a number of research material that suggest that fitness organizations that are smaller with more opportunity to socialize are becoming a norm 

According to the Millennials Take on Fitness n d millennials are constantly looking for new ways to be fit and eat healthy even if they have to create something themselves Currently Planet Fitness has nothing that would cater to the shift in health and wellness in the market This can be changed if they focused on goals of innovation and change Daft 2016 states that innovation goals deal with the creation of new services products or processes One of Planet Fitness goals should be to open a health foods store in every location This would cater to the one stop shop idea so people can work out and grab a healthy breakfast lunch or dinner on the way out the door Even if a store is too big of a move a simple independently owned health stand would be a step in the right direction In addition to compete with other gyms Planet Fitness should expand each location to include activities such as a swimming pool along with specialized group classes while keeping their membership fees low Mimeo a printing company started offering unbeatable customer service while paying for the extra work from their own pockets In order to keep the membership costs low Planet Fitness would have to mimic this innovation but the return on investment as it relates to profit and customer satisfaction would make this change worth every penny Conclusion Planet Fitness has the potential to continue to be a big leader in the health and fitness world especially if they begin to implement the proposed competitive advantage By reshaping its structure and using the competitive advantages Planet Fitness would have a chance to broaden the profit pool Expanding this profit pool creates a win win opportunity for all parties in the industry Porter 2008 as this would result in more profit and business for Planet Fitness and a great opportunity for the independently owned health store or the instructors of group classes

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