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Case Presentation- Fitness    					Plus,[object Object],     Presented By:,[object Object],     Dapinder Singh,[object Object],     Anish Garg,[object Object],     Matt Furedi,[object Object],     Matt Osterstrom,[object Object]
Fitness Plus Health Club,[object Object],Owned by Randy and Martha Campbell,[object Object],Opened in Nov. 1991,[object Object],Located in Gadsden, Alabama,[object Object],Expanded to 3 locations within 10 years,[object Object],Partnered with Gadsden Regional Medical Center ,[object Object]
Activities,[object Object],Child care for up to 2 hours per day,[object Object],Complete Aerobics and Strength Classes Program,[object Object],Home to the Etowah County Sports Hall of Fame,[object Object],Rear tiled interior area overlooking pool; this space is rentable for children's birthday pool parties,[object Object],Home to Gadsden Regional Medical Center's Rehab Center,[object Object]
Case Summary,[object Object],Experiencing growth,[object Object],1995- 15 members per hour,[object Object],2000- 25 members per hour,[object Object],Complaints from members increased,[object Object],Study done in May,[object Object],4 months needed for construction,[object Object]
Case Summary Cont.,[object Object],Increasing area population,[object Object],New YMCA opened nearby ,[object Object],Two other new low cost fitness clubs,[object Object],Oasis,[object Object],Gold’s Gym,[object Object],Expansion would have to be done before January,[object Object]
Information -What’s Going on today?,[object Object],Fitness plus is a workout Facility located in North Carolina.,[object Object],Fitness plus offered various activities such as:,[object Object],    1. Fitness Activities,[object Object],    2. Recreation Activities,[object Object],    3. Relaxation Activities,[object Object]
What’s going on today?,[object Object],Due to growth in membership and large shifts in demand, Fitness plus is overcrowded.,[object Object],Average number of members checking in at the existing fitness club is 25 per hour.,[object Object],Club is currently open 101 hours per week.  ,[object Object],Increasing the no. of working Hours.,[object Object]
What’s going on today?,[object Object],Current Capacity measured as inputs for the Nautilus, Cardiovascular and Aerobics fitness area.,[object Object],Focus is on the cardiovascular area where demand is over capacity at peak times.,[object Object],The resurgence of activity in the downtown area has brought increased and new businesses.,[object Object]
What’s going on today?,[object Object],The current competitors of Fitness Club are:,[object Object], 1. YMCA : They provide all services at very low cost,[object Object],  2. Oasis: Offers caters to young adults.,[object Object], 3. Gold’s Gym: Which is weight and    cardiovascular training only.,[object Object]
SWOT Analysis,[object Object],[object Object],Company’s owners have immense experience in the health club and fitness industry.,[object Object],Health care program is well thought-out according to the need of common people.,[object Object],Lowest cost of service in the entire market of Coral Gables.,[object Object],Company will hire qualified and trained staff,[object Object]
SWOT Analysis continue…….,[object Object],[object Object],Fitness Plus has less number of trainers and staff that can become a problem in providing,[object Object],	service to a large pool of members.,[object Object],Club is short of marketing budget,[object Object]
SWOT Analysis continue…….,[object Object],[object Object],The demand for health care and fitness club is growing rapidly in USA.,[object Object],Increasing heart and obesity diseases are causing people to pay importance to exercise.,[object Object],People are getting familiar to going to gym and health clubs in their daily routine life.,[object Object],A large segment of market is still untapped; low income area will be of special focus for Fitness,[object Object],	Plus, which is totally ignored by the rivals.,[object Object]
SWOT Analysis continue…….,[object Object],[object Object],Recession and economic downturn can slow down the growth of health clubs.,[object Object],Low cost offer from well established competitors. Although it’s a small level threat due to a fact that market is rapidly growing.,[object Object],Low cost health care equipments availability for at-home exercise,[object Object],	http://www.bizplancorner.com/SWOTSamples/startup-business-swot-analysis.pdf,[object Object]
Owner’s Questions,[object Object],Were the capacities of the existing facilities constrained, and if so, where?,[object Object],If capacity expansion was necessary, should the existing facility be expanded?,[object Object],Owing to increased competition and growth downtown, was now the time to open a facility to serve that market?,[object Object]
Case Questions,[object Object],What method would you use to measure the capacity of Fitness Plus?  Has Fitness Plus reached its capacity?,[object Object],Which capacity strategy would be appropriate for Fitness Plus? ,[object Object],How would you link the capacity decision being made by Fitness Plus to other types of operating decisions?,[object Object]
Thanks,[object Object]

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