(California fitness) SWOT Analysis

SWOT Analysis

Strengths

-          Well known and the leading fitness centre chain in Asia

-          World-class exercise equipment

-          The one which have a Group X classes

-          Personal trainers with internationally certified

-          24 hour Fitness Worldwide

-          Have a good partnering with a team of fitness superstars (Andre Agassi, Lance Armstrong, Jackie Chan, Earvin “Magic” Johnson, Shaquille O'Neal and Derek Jeter)

Strengths analysis

California fitness is a well known and the leading fitness centre chain in Asia especially in Singapore, they also have clubs outside Singapore that is in Hong Kong and mainland China. Today, they have 22 fitness centers across Asia and four of their clubs are in Singapore. Their clubs locations in Singapore are very convenient which are in Bugis, Orchard, Raffles, and Velocity at Novena Square. Bugis and Raffles are very convincing places as these places are business districts in Singapore, so after working hours usually this gym will be crowded with people who working nearby. For Orchard, it is a very convenience location because Orchard is a main shopping and entertainment district in Singapore like many shopping centers, many hotels, and many condominiums. So when the tourist or people go to Orchard and want to go to the gym, they just go to this gym. The last is in Velocity at Novena Square because Velocity is a sport shopping mall and also housing residents surround this mall. So after working hours or after school, before this people go home, they usually come to this gym and then go home. Moreover, California fitness makes their customers satisfied when they are at the clubs because they provide personal trainers with all internationally certified and world-class exercise equipment. Furthermore, to facilitate their customers they are using an automatic deduction for their monthly fee. So that people can’t forget to pay it and make more convenience to the customers. Moreover, California provides a good service to their customers.

Weaknesses

-          Expensive fee per month or per year

-          Expensive fee when want to use a personal trainer

-          The personal trainer really like to impose for using their services to the customers

-          Customers must bring their own padlock

-          Internal conflict between employees and between employees to the customers

Weaknesses analysis

Beside the good things, they also have disadvantages. Their fee per month or per year is very expensive even for student price, eve though the latter is not as expensive as the regular price. They charge a high price because they want to build their image as a high quality fitness centre. Furthermore, due to their marketing campaign, maintenance fee, and equipment, they require a lot of money which will be covered by their fee. Moreover, because of the high salary of their internationally-certified-personal trainers, they charge high price even for student. In addition, to overcome an internal conflict, the management of California fitness must train their employees in order to work as an individual or groups.

Opportunities

-          Opens new branch overseas such Indonesia

-          Open new interesting classes

-          Selling Supplement as their additional income

Opportunities analysis

As a big company for fitness centre, California still wants to expand their company to many countries especially to Indonesia because Indonesia is near from Singapore. Moreover, many Indonesians study or work or come to Singapore for their holiday, so they might be familiar with California fitness. These make management of California will get a good response when they open their fitness centre in Indonesia. As fitness centre, they have many competitors that might have similar class or facilities, such as aerobic class or having swimming pool and boxing room, California fitness should be different from their other competitors to attract more people to join with them. For they new classes are name as Group X program and Zumba Toning. Furthermore, they also sell best-brand supplements at their clubs for additional income.

Threats

-          So many competitors nowadays

-          Inflation might impact on monthly fee that they will offer to customer

If they want to expand to Indonesia, they should aware of political, legal, and regulatory risk.

Threats analysis

There are many threats that California fitness must face, even in their local market which is in Singapore and when they want to expand their club to Indonesia. Now it’s been a lot of fitness centers in Singapore and still come out with new fitness centre, for example are Fitness First, True fitness, and Pure fitness for the new fitness centre in Singapore. California fitness potential competitors when they decide to open it in Indonesia are Fitness First, Gold’s Gym, and Celebrity fitness. Economic condition of the local country also affects income of California fitness especially when they have inflation in Singapore or Indonesia because, for example, people will quit from the gym as they can’t afford to pay the monthly fee and when people slowly quit form that gym, they can pay for their maintenance or pay salary for their employees. So California fitness will closed and many people will lose their job. They also must to follow local regulations when they want to expand their business in those countries.