Question

1. What business model could Zumba use?
2. What are the key revenue and cost drivers for your recommended model?
3. What do you feel are the key aspects to implementing this model?

minimum 300 words

Answer 1

Ans 1.)Zumba is a fitness programme launch by the Alberto Perez a columbian in 1990's.They started fitness trainning through videos and also trainned 14 million people across 186 countries .Later on in 2015 with the help of venture capitals it started its expansion .Here it is noteworthy that only the Zumba certified trainners can train the people and they organised their conference time to time.The best buainess model that Zumba can use is the the model based on law of diminishing marginal utility as we can see they provide service and after some time the trainnees tend to feel bored of the same exercises and started to losse their interest in workouts hence their marginal utility decreases over time hence Zumba should constantly try to look into new ways so that it will become interesting for the trainnes a bit more innovation or a virtual tranning classes can be done making people feel lot more new. Ans 2 ) Innovative and engaging trainees is the way to increase the market share.The key revenue drivers could be to develop a francise sort of agreements between the various leading fitness centers across the globe as well as organising fitness based marketing campaigne.Here it involves organising marathon , games and other health checkups etc.The focuss should be more on college going as well as teenagers.Since they have comparatively more energy and time for such kind of trainning programmes.The cost can be reduced by entering into revenue sharing partnership agreements which covers of divides the cost also in such kind of arrangements Zumba should charge a decent amount for trainnings to trainners through online classes.

Ans 3) The key aspects to implementing this models are first collaboration , innovation , Values and Culture and above all to be imparting a knowledge based learning to the trainees about the importance of a healthy lifestyle and the benifits of it and disadvantages of unhealthy lifestyle.The aim of Zumba universe should be to establish a standard of quilty workouts which not only reduces calories in a great manner but also make it a fun so that the trainees could enjoy the process.Finding new innovative workouts to keep the learning curve of trainners growing this will keep them upgraded and more efficient .To develop a culture of collaboration and partnership with the fitness center owners and otherstakeholders.