summarizing
Strategic Plan Part I: Proposal of a New Division
Strategic Plan Part I: Proposal of a New Division
The economy today is fast paced and constantly growing. In order to keep up with the fast-paced economy, businesses must come up with strategic plans to be able to maximize all opportunities. 24 Hour Fitness is a fitness center chain that allows members to visit the gym at any hour of the day. The organization is looking to expand and open a new division to offer more perks and options in the membership. This paper will discuss the mission and vision statements for 24 Hour Fitness’ new division and how it addresses customer needs and achieves competitive advantage. This paper will also discuss how the new division’s mission and vision aligns with the company's current mission and vision as well as summarize how it will guide the division’s strategic direction. Finally, it will define the guiding principles and values for the division in the context of culture, social responsibility, and ethics.
New Company Division
24 Hour Fitness is looking to expand and open a new division called Fitness 2 Go. Fitness 2 Go is an online service that will provide members access to online personal training modules that can be done virtually anywhere. The mission statement for Fitness 2 Go is “Helping everyone achieve a fit and healthy lifestyle anytime, anywhere, no excuses”. Fitness 2 Go is designed to cater to the individual who has little time to go to the gym. Our mission is to inspire members to live a healthy lifestyle even when there is little time to spare. It offers a variety of workouts that can be done at any time and each workout is tailored to the specific needs of the member. The program comes in the form of an application that can be downloaded at no charge. The application also provides workout and fitness tips, a virtual personal trainer, meal plans, health tips, and much more. The application also tracks your workouts, diets, calorie intake, and makes recommendations based on the members’ specific needs. The difference between 24 Hour Fitness and Fitness 2 Go is that Fitness 2 Go is tailored for the individual who does not have the time to make it to the gym every day. This serves as an option to still incorporate a healthy lifestyle in one’s daily routine. Fitness 2 Go addresses consumers needs by giving them an easier option for living a healthier lifestyle. The organization can achieve a competitive advantage because there are not many gyms that offer this service. While most gyms offer amenities and classes for their members, they do not offer an option for people who find it difficult to make it to the gym due to their busy lifestyle. Fitness 2 Go can help change many people’s lives with a simple click of a button. The vision for Fitness 2 Go is to inspire people to live a healthier and ‘no excuse’ lifestyle while on the go. The company wishes to create a motivational source for people who do not have time or means to go to the gym and will offer them everything they need to live a healthier lifestyle.
The Business Model
Business: 24 Hour Fitness, a fitness center chain that allows members to visit the gym at any hour of the day. 24 Hour Fitness is the perfect gym for people who want the best fitness classes, premium gym amenities and 24-hour access to the facility.
New Division Idea: Fitness 2 Go, an online service that will provide members access to online personal training modules that can be done virtually anywhere. Includes meal prepping and planning, activity and weight tracker, tailored personal trainer, hundreds of workouts that can be done anywhere at any time, a variety of health tips and recommendations, and much more.
Consumers: The target audience for this service would be anyone with limited time to go to the gym and is looking to achieve a healthier lifestyle. The workouts can be tailored to any age group and gender. Therefore, this service would be ideal for anyone.
Market: There are several services similar to Fitness 2 Go but none that cater to each individual need. Competitors have workouts that are generic and not specific for each person and their individual needs. Fitness 2 Go is tailored to meet the needs of each consumer. The workouts are personalized depending on your age, goals, time, and individual needs. This service is the first of its kind in the market.
Valuation: Fitness 2 Go ranges from $25 to $50 a month depending on the membership from 24 Hour Fitness. An individual with a membership for 24 Hour Fitness is given a discount for the service, however, a gym membership is not required to join Fitness 2 Go. Each member will receive a welcome kit with complete program information and gifts.
Financial Analysis: The service requires members to have a fitness tracker that will be provided with each membership. These trackers, along with software programs, are estimated to range from $500,000.00 or more in initial startup costs.
Marketing Plan: When conducting a market analysis, it is determined that the best way to promote the product would be through online advertisements and social media. The service will also be promoted in every 24-Hour Fitness gym location as well as mailouts with promotional discounts.
Competition: Fitness 2 Go is the first of its kind to custom make workouts, meal plans, and more specifically to the individuals needs. The competition offers a similar service but without the benefit of having unique information for each specific member. Also, Fitness 2 Go provides a universal fitness tracker at no additional cost where the competition simply offers a discount on the purchase on one of their own.
Risk: Like most organizations, Fitness 2 Go faces the risk of members cancelling their services or limited number of members joining. This division requires an initial investment that may be lost if not enough members join and member retention is lost.
Alignment of Mission, Vision, and Value
The mission and vision statements for 24 Hour Fitness can help guide employees and managers toward the path for success. The mission statement for 24 Hour Fitness is to provide an entertaining, educational, friendly and inviting, functional and innovative experience of uncompromising quality that meets the health and fitness needs of the entire family. Their vision is to make fitness a way of life by creating the ultimate in multi-sport fitness centers and making them affordable and accessible to people of all abilities and fitness levels (24 Hour Fitness, 2017). The mission, vision, and value of Fitness 2 Go aligns with the mission and vision of 24 Hour Fitness because it is infused to work hand in hand with what the gym itself wishes to achieve. The new division provides a convenient way to help members achieve their desired objectives. By taking into consideration what 24 Hour Fitness is looking to achieve, managers know what plans and actions they need to take to meet the company’s mission. Employees and managers may use the core values of the company to represent the company the way it is intended. Managers must align their actions to meet the needs of consumers and fulfill the mission statement.
Guiding Principles and Values
The guiding principles and values of Fitness 2 Go are what drives the company to achieve success. By aligning the mission and vision of the company, the division will provide convenience, flexibility, and affordable costs to the consumer. This can help drive the company where it wants to go and allow for easy business strategic planning. Morals and social obligations are essential for any business. Culture, social responsibility, and ethics play a major role in the success of a business. 24 Hour Fitness and Fitness 2 Go focuses on the well-being of every member and puts forth maximum effort to control unethical behavior. The company strives to succeed and holds it employees and guests at the highest level of integrity.
Conclusion
In conclusion, 24 Hour Fitness is looking to expand and open a new division to offer more perks and options in the membership. Fitness 2 Go will offer state of the art virtual fitness workouts that can be accessed from anywhere at any time. The divisions mission and vision statements provide a clear understanding of what the company is doing and where it wants to go in the future and the way it aligns with the current statements for 24 Hour Fitness. Knowing the mission and vision statements the company strives to achieve the new division will be able to succeed and help deliver the company’s purpose with ease.
References
David, Fred R., Forest David. Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16th Edition. Pearson Learning Solutions, 4/2016. Business Model (2017). Retrieved from: https://www.investopedia.com/terms/d/distribution-channel.asp Scott, R.E. (2015). Consumer Marketing: Strategies for Success. Retrieved from: https://www.epi.org/publication/consumer-marketing-strategies/67422 24 Hour Fitness (2017). Mission and Vision. Retrieved from: http://www.24hourfitness.com