Business 2257 Typed Case Study Answer - Aradia Fitness London.docx

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Department
Business Administration
Course
Business Administration 2257
Professor
Brian Langen
Semester
Fall

Description
Role: Andrea Tierney, owner and franchisee of Aradia Fitness London Decision: How to implement, price, market, and promote the new TRX suspension program Goal: Increase profit and retain current pole exercise customers Industry Analysis Case Fact Implication Sustainability How long will this stay a trend for? Threat A few major fitness clubs dominate the Canadian fitness industry Increased competition Technological development allows at-home physical exercise plans Canadians are becoming conscious of their physical health  Total health club membership increased 20% between 2004 – 2010  Expected annual growth rate of 2.3% for the next 5 years Potential increase in sales Opportunity Only 53% of Canadians meet minimum recommendation of 150 minutes of physical activity per week. Niche fitness is popular. May be unsustainable, but possible to capitalize Competitive Analysis Case Fact Implication 10,000 fitness clubs totalling 5,000,000 members in Canada Only an average of 500 members per club; Increased competition Total monthly cost of $60 with possible promotions and discounts Much cheaper price Two locations More convenient Athletic Club Open 24 hours weekdays and 12 hours on weekends More convenient and accommodating Co-ed TRX classes offered thrice a week at London South Possibly more or less convenient
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