Integrated Health Management

 Gaining Competitive Advantage in the Fitness Industry

There are an abundance of potential markets and business models in this industry. But, if you’re not aware of the complete market picture, in balance, you don't know your true position or where real threats may come from. Should you stay put with certain programs and class schedules? Maybe try to capture a new market segment? What are the indicators? What are your strategic options? Do you have a clear strategy?

Our consulting efforts do not attend to short-term operational improvements or short term marketing tactics. Rather, we focus on helping clients make fundamental medium-term (1-3 year) strategic choices that could provide sustainable differentiation. We begin by aligning your current strengths and capabilities with related market opportunities to help determine feasibility. SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) is an invaluable tool.

In an industry with no regulatory barriers of entry, relatively low profit margins and increasing numbers of competitors on the horizon, why “fly blind”? Many growing companies (and mature ones), devote too little time to think systematically about market strategy and competitive positioning. In this industry, there is a tendency only to care about your one closest rival, and that "really weak" club that makes you look so much better to your members. In a way you’re glad both are around. But to not regard the other facilities in the mix because they are not perceived threats is a mistake. You’re fine, why worry, right? Sure.

Then, out of nowhere a new competitor arrives, or, one of the also-rans breaks-out of the pack, armed with fresh capital and prepared to fight you tooth and nail for a prime market share. And you know what? If they have a clear market focus, they stand the better chance for long term victory. Why? Besides being more focused, chances are, they’re probably dealing with a lender who made them prove that they understood their market, and that their strategy was a viable one. Is yours? Knowing your position; when, how, or if you should try to capture more of your market, or, create barriers of entry to competiton are things we can help you plan for and appropriately act upon.

The critical issues which we would address are:

Overall Market: What are the largest and fastest growing segments? How is the primary segment being cared for.
Competition/Industry Structure: What share of overall market can you command?
Customer Value: How do they evaluate you? Customer attachments/trust?
Products/Services/Prices: Precisely what “packages” do customers in your market want?
Marketing Strategy: Shared customers, facilities? Stronger Physician, Employer and Community relationships?
Staff: Turnover advantages? Skill deficiencies? Contract Clinicians?

So, weather you’re an up-and-coming beginner in an embryonic market, or a champion with no perceived competition…BEWARE. Do your homework. Know your market. Have a true business and marketing plan. I was a fitness center owner before I became a consultant…and I have the scars to prove it.

Remember Mike Tyson, the fighter? The “Baddest Man On The Planet”? Well, in his hey-day he was once asked if he took an opponents plan to defeat him seriously or not. Mike boldly replied “Hey, everybody has a plan until they get punched in the mouth”. Mike, like many businesses, didn’t think he'd need a plan. Then Buster Douglas punched him in the mouth. Don’t be like Mike.

Anthony Gordon
Principal
Integrated Health Management
(203) 644-5515