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The U.S. Health Club Industry in 2004 Description

In 2004, the $16.8 billion U.S. health club industry continued its strong record of growth. There were almost 27,000 health clubs in the United States, up from 6,700 two decades earlier, and these clubs claimed 41 million members, over 14% of the U.S. population. Nearly 67 million people used these clubs in 2004. As the industry grew, many large chains began to emerge, opening new outlets and buying up smaller chains and independents. Most industry observers believed the growth and consolidation would continue, providing many opportunities for investors. However, few health club chains were publicly listed, and the leading listed company, Bally Total Fitness, was under U.S. Securities and Exchange Commission investigation for accounting irregularities. Yet this investigation did little to dampen enthusiasm for the new personal health phenomenon, and rumors abounded of private equity deals in the offing. The key question for investors seemed to be how best to take advantage of the opportunity.


Case Description The U.S. Health Club Industry in 2004

Strategic Managment Tools Used in Case Study Analysis of The U.S. Health Club Industry in 2004

STEP 1. Problem Identification in The U.S. Health Club Industry in 2004 case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of The U.S. Health Club Industry in 2004 case study

STEP 3. Industry Specific / Porter Five Forces Analysis of The U.S. Health Club Industry in 2004 case study

STEP 4. Evaluating Alternatives / SWOT Analysis of The U.S. Health Club Industry in 2004 case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis The U.S. Health Club Industry in 2004 case study

STEP 6. Recommendations The U.S. Health Club Industry in 2004 case study

STEP 7. Basis of Recommendations for The U.S. Health Club Industry in 2004 case study

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Case Analysis of The U.S. Health Club Industry in 2004

The U.S. Health Club Industry in 2004 is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The U.S. Health Club Industry in 2004 is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. The U.S. Health Club Industry in 2004 case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. The U.S. Health Club Industry in 2004 will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

The U.S. Health Club Industry in 2004 case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of The U.S. Health Club Industry in 2004, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The The U.S. Health Club Industry in 2004 case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, The U.S. Health Club Industry in 2004 case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – The U.S. Health Club Industry in 2004

Step 1 – Problem Identification of The U.S. Health Club Industry in 2004 - Harvard Business School Case Study

The first step to solve HBR The U.S. Health Club Industry in 2004 case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Clubs Club is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Clubs Club, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the The U.S. Health Club Industry in 2004.

The external environment analysis of The U.S. Health Club Industry in 2004 will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The U.S. Health Club Industry in 2004 case study. PESTEL analysis of " The U.S. Health Club Industry in 2004" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with The U.S. Health Club Industry in 2004 macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for The U.S. Health Club Industry in 2004

To do comprehensive PESTEL analysis of case study – The U.S. Health Club Industry in 2004 , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact The U.S. Health Club Industry in 2004

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on The U.S. Health Club Industry in 2004

Government policies have significant impact on the business environment of any country. The firm in “ The U.S. Health Club Industry in 2004 ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Clubs Club is operating, firms are required to store customer data within the premises of the country. Clubs Club needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. The U.S. Health Club Industry in 2004 has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Clubs Club in case study The U.S. Health Club Industry in 2004" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Clubs Club in case study “ The U.S. Health Club Industry in 2004 ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Clubs Club in case study “ The U.S. Health Club Industry in 2004 ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on The U.S. Health Club Industry in 2004

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ The U.S. Health Club Industry in 2004 ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Clubs Club can compete against other competitors.

Government Scheme & Subsidies Impact on The U.S. Health Club Industry in 2004

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at The U.S. Health Club Industry in 2004 case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on The U.S. Health Club Industry in 2004

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Clubs Club needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact The U.S. Health Club Industry in 2004

Social Factors that Impact The U.S. Health Club Industry in 2004

Technological Factors that Impact The U.S. Health Club Industry in 2004

Environmental Factors that Impact The U.S. Health Club Industry in 2004

Legal Factors that Impact The U.S. Health Club Industry in 2004

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The U.S. Health Club Industry in 2004 case study. PESTEL analysis of " The U.S. Health Club Industry in 2004" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: The U.S. Health Club Industry in 2004 case study solution

Amanda Watson

Amanda is strategy expert at Texas Business School . She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. You can hire Texas Business School professinoals to revolutionize your strategy & business.

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