The Strategies Used By Fitness First To Build and Sustain Competitive Essay

The Strategies Used By Fitness First To Build and Sustain Competitive Advantage - Essay Example It is evidently clear from the discussion that established in 1993, Fitness First has grown significantly through pricing strategies that outperform or are generically more attractive to consumers both price-sensitive and those looking for more value for their money. Whilst other competition position on quality, reputation or innovation, Fitness First has gained positive ground by appealing to the budgetary needs of its many target consumers. Fitness First maintains many weaknesses, most of which are related to marketing and promotional development, lack of a cohesive organizational culture, and an inability to remove supplier and buyer power in the market. Fitness First maintained losses in 2010 and 2011, indicating a problem with operational costs that continue to outpace revenue production. As such, in this highly competitive industry, marketing becomes a critical function for the company if it is to be sustainable into the future. Despite these weaknesses, strengths associated wi th proper celebrity endorsements and effective diversification of existing products and services to extend the life cycle of its offerings tend to offset some of the aforementioned weaknesses. It is recommended that Fitness First conduct ample market research to align service and product with changing consumer needs, work to build a more mission-focused organizational culture, and improve marketing prowess with more investment in promotion as a key competitive strategy (brand-building emphasis). Fitness First was launched in 1993 as a single, stand-alone gym in Bournemouth. Through a series of investments, acquisitions, and business model improvements, Fitness First has grown quickly to become one of the largest health club centers in the world. The privately-owned company now boasts over one million members in over 400 Fitness First clubs spread across the globe.