case study stage 1

The UR UMUC Healthy Fitness Center case study analysis

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The UR UMUC Healthy fitness centre is a centre that has been operating since 1980 as a centre for exercise and martial art classes. For more than twenty years since it was started, the fitness centre has been operating on the same way and nothing much has changed since its inception. Being on the 21st century, there is a great need of the management of the company to device new system of operation if it is to continue delivering its services to the public in the future. This paper gives an analysis of the situation at UR UMUC Healthy fitness center and devices on the strategies that I would employ being a newly employed manager at the centre.

Analyzing porter`s five forces, it will be easier to redefine the competitive position of UR UMUC Healthy Fitness Centre. Based on the information that has been provided for the fitness centre, analysis of Porter`s five forces will help in creating a competitive advantage of the firm over new entrants in the market.

Buyer’s power- This is the ability of the buyers to continue enjoying particular services or goods based on their preferences for the seller. In the health fitness centre, buyers power is at stake and this will mean that if the buyer`s power is to reduce, then it will negatively affect the performance of the centre. This force is not likely to affect my strategy as I will be dealing with other forces that will automatically increase the buyer`s power.

Supplier`s power- the ability of the supplier to continue providing the center with their required equipment. The suppliers` power has a neutral impact to the centre since the operations of the centre determine the willingness of the suppliers to keep on supplying the centre with their materials. This force is also not likely to affect my strategy as it is dependent on the success of the operations in the centre. Threat of substitute services is a force that defines the effect that there would be if new but related services within the locality. This force is likely to create a negative impact and will be featured in my strategy of improving the centre.

Threat from new entrants- The fourth force that defines the effect that would be realized from new provider of similar service. New entrants in the business will create a negative impact on the business and will also affect my strategy on developing the centre. A new fitness centre is underway and this will mean that I will have to employ certain strategies that will elevate customer satisfaction in our centre to prevent customers from preferring the new fitness centre more than the existing one.

Rivalry among existing competitors- this is the fifth force is the rivalry among the existing competitors and defines the threat posed by businesses that provide a similar service within the locality. This force has a negative impact on the fitness centre and is likely to affect my strategy for the business. I will have to provide a unique and quality service to all customers in order to ensure that we gain a competitive advantage over similar businesses.

Given a chance to choose the Porter`s generic strategies, I would choose the focus strategy on developing the fitness centre. The situation of the fitness centre at the moment is the reason as to why I choose this strategy. Currently, the fitness centre seems to be a monopoly and creating focus for the particular market will be an added advantage to the centre. Using the focus strategy, the business will become more specific in its diverse operations and focus more on customer satisfaction so that the business may win the loyalty of the customers. With the loyalty of the customers, we will have outdone new entrants and the providers of substitute fitness services.

The strategic business area that is to be improved in the center is the technological sector. Since the business was set up in 1980, no major technological change has been embraced and the business continues business as usual in its daily operations. Technological changes will include the replacement of the obsolete equipment. Improved technology will increase the customer satisfaction and improve the business operations and the earnings from the centre.

Narrowing down to the specific process that needs to be improved, I will improve the customer care desk. The customer care desk will be receiving the highest technological boost. To be more precise, a website will be formed that will enhance customer relations. Through this process, customers will be in a position to express their queries and areas that they feel the center should improve. With a more close relation to the customers, I may not have to become keener in observing what needs to be replaced within the fitness centre.

GENERIC STRATEGY: Focus strategy is the effective strategy that will focus on developing particular areas for customer satisfaction.

STRATEGIC BUSINESS AREA: technological sector is the strategic business area that will improve customer satisfaction within the centre.

PROCESS TO BE IMPROVED: development of a website for the customer care desk will be the most effective process that will improve the customer relations.

References

Baltzan, P. (2012). Business driven information systems. New York: McGraw-Hill Irwin.

QuickMBA, (2013). Porter`s Generic Strategies. Retrieved from http://www.quickmba.com/strategy/generic.shtml