Anytime Fitness

Tingting Shen (Laura) Ying Liu (Ivy) Xinwei Hou (Sylvia) Wenlong Su (Vince)

History

A large 24-hour fitness franchise The first club was established in Cambridge, MN, in 2002 Robust rates The factors to success Widely recognized

Global Market Assessment

     Fitness industry meets the demand for health Fitness industry has huge potential Fitness is popular The development in some countries Supporters

Future Outlook in China

    A good time to extend to China Ample room for development Chinese have the ability and willing to pay for the fitness fee Customer groups ---Children ---Women ---Businessmen

Two Competing Companies

Nirvana Fitness CSI-bally Total Fitness

---most relevant to not relevant       Demographics Economics Government Culture Physical Infrastructure Communication Infrastructure

   

Demographics

Total Population ---1,338,612,968 Middle Class Size--- 70 million people $10,000 US income average age --- 35.2

Urban/ Rural Composition--- 43% urban population

Government

Government Stability Government attitude to FDI Legal System

   

Economics

GDP and GDP Growth Rate Per Capita GDP Consumer Inflation Potential Market   

Culture

View point of beauty Willingness to Stay Fit General Perception towards foreign business

Physical Infrastructure

 Public transportation

Communication Infrastructure

 Daily newspapers --- more than 40 million  Television users --- 30%  Internet users --- 298 million (2008)

Key Factors

 Public transportation  GDP per capita of China  Legal system  People’s attitude to fitness

Competitive Nations-- JAPAN

• Improved stature due to exercise • Stress on health  The third-largest economy in the world  Strong consumption power  Open consumption idea: don’t much care about price

Disadvantages

 Densely-populated country--- High rent  Ageing problem, low birth rate and population growth rate--- Decreased demand  Economic risk exists after the financial crisis

Competitive Nations--- GERMANY • German love sports • Fitness industry is the 2nd largest market in Europe • Large medical insurers reimburse fitness costs --- 30 to 200 euro • Government promotes national to do exercise • Fitness industry: • Rapid developed in late 1990’s--- Closed due to improper management and service in 2002--- Steady rise from 2006 • Fitness is an active and forward market

Disadvantages

 High income tax: 33% to 37%  Indirect tax increased 3% from 2008  Fierce local competition--- special services

Short-Term Recommendations

 Establishing partnerships Residential Communities  Advertisement   Local employees are better Build up the comfortable environment

Long-Term Recommendations

----- next-five years  100% copy  Build up clubs around the super cities, and then build up the flagship in super cities.

 Acquisition

Long-Term Recommendations

----- second-five years  Enlarging the range of services or products  Build up the corporate culture depends on the culture difference

Conclusion

 Anytime Fitness have the ability to develop a global market expansion strategy   Anytime Fitness must seek a new market to develop their business The business environment in China is favorable for Anytime Fitness  Chinese market has huge profits and intense competition at the same time  Japan and Germany also have the market potential to develop fitness industry  The high-equipment and friendly atmosphere are the key to success  Anytime Fitness must has a short and long plan to develop