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Bally Fitness. OVERVIEW Obesity is a serious problem in America where, as of 2004,
two out of every three adults were classified as obese (Wells, 2006). ...
... is a gym, not just a gym but also a Bally's fitness center will be located close
to or in middle class to upper class neighborhoods, just for kids between the ...
... You may be wondering why you don't see that many Bally Fitness Clubs; the reason
for this is because they run the business under 6 different names. ...
Bally Total Fitness Marketing Audit. ... Bally Total Fitness would be wise to consider
marketing towards this age group as their needs change. ...
... Scope of International Operations International operations for Bally's Total Fitness
and Wal-Mart are responsible for a significant amount of growth as well as ...
Submitted by sammba on December 15, 2007
Category: Technology
Words: 1322 | Pages: 6
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OVERVIEW
Obesity is a serious problem in America where, as of 2004, two out of every three adults were classified as obese (Wells, 2006). In response to this alarming fact, the US Surgeon General’s office has voiced its concern about the effects of obesity. With such a highly publicized campaign against obesity, Americans have become increasingly-health conscious, driving growth in a variety of industries including the health club industry. During the ten year period from 1995 and including 2004, the health club industry saw an increase of 113% in the number of clubs, and in 2004 alone, industry-wide revenues totaled $ 14.1 billion (Wells 2006). Another key factor that has led to this growth in this industry is the increase in members under the age of 18, which doubled between 1993 and 2003, and the increase in members over the age of 55, which increased 273% over the same period (Wells, 2006).
BASIC ECONOMICS
From industry data (Wells, 2006), it can be deduced that since 2000, the demand for health clubs is increasing on average at 6.3% and the supply of health clubs is increasing on average at 11.8%. This sizable increase in the number of health clubs is due to the fact that new competitors can easily enter the market. The threat of new entrants is high because although supply side economies of scale do exist, there are mechanisms in place that provide a new entrant means to overcome the advantage. One example is that larger firms would require more equipment to fill their larger facilities, thereby incurring a greater cost, but be able to spread that cost over a greater number of patrons. However, smaller firms can overcome the issue by leasing smaller spaces with few amenities and, instead of making large capital expenditures for equipment, buy used equipment for a discount or lease new equipment. A small operator can open a club with $ 25,000 to $ 35,000 investment (Wells, 2006).
On the demand-side, benefits of scale...
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