Question

1] Analyze the health club industry (NOT just Planet Fitness but the industry in which Planet Fitness is operating using Porter's Five Forces Model

2]    How has Planet Fitness developed a sustainable competitive advantage in this industry?

3] How has Planet Fitness achieved solid financial results in a challenging environment?

4]    What are the pros and cons of Planet Fitness’s franchising strategy?                                 

5]        Can Planet Fitness sustain its competitive advantage moving forward? Are the company’s growth objectives reasonable and attainable

Answer 1

Health Club Industry

Threat of New entrants-economics of scale

Threat of substitute products-we can tackle situation by offering unique products or service than the competitors.

Bargaining Power of supplier-maintain more than one supplier and keep in touch with them.

Bargaining Power of Buyer-attract customers by providing new and innovative products.

Rivalry among existing Competitors-identify changing trends and come up with differentiation.

Planet fitness provide a clean and friendly atmosphere to its members. It can be easily accessible and affordable to all segments. They are providing proper training and instructions to the members, it helps them to retain its members.

The planet fitness achieved solid financial result in challenging environment because of its low membership fee compared to others. They have huge number of franchise across globe. They are directly providing equipment’s to its franchises.

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