Running head: MARKET POSITION ANALYSIS 1 MARKET POSITION ANALYSIS 7 Market Position Analysis for Planet Fitness Ysidro Vasquez Argosy University September 13, 2018 Market Position Analysis for Planet Fitness Introduction Planet Fitness is a limited liability company and franchise which deals with the provision of fitness amenities across the USA. The company is aimed towards ensuring that there is a provision of comfortable, hygienic, and judgment-free places for each and every individual who wishes to pursue an active and healthy lifestyle through engaging in physical exercise. The fitness industry, as well as the concept of well-developed bodies, can be traced back to what used to be referred to as physical culture in the late19th century (Andreasson & Johansson, 2014). In the past decades, there have been a significant revolution and development in the fitness industry. According to the International Health, Racquet and Sports Club Association (IHRSA) (2015), in 2012, an estimated more than 75 billion dollars was generated in the form of revenue by the various health and fitness companies around the globe. Currently, the primary focus for gyms is centered on the general changes from a male-dominated perspective of bodybuilding and muscles development to a more gender-inclusive approach. The number of individuals suffering from obesity and other lifestyle disorders in the US has been considerably increasing with time (Sassatelli, 2010). Consequently, there has been an increased demand for gyms to help reduce the incidents of obesity (Malley, 2014). Working out has also become an important activity which is recommended by health practitioners as it helps in shaping and burning off excessive fats from the body (Dogan, 2015). As a result, planet fitness center in Durham was meant to provide fitness services to the growing health-oriented clients around Durham in North Carolina. The gym has been relying on the provision of affordable services as the primary marketing strategy. According to the interviewed employee, the affordable pricing strategy has significantly helped the store in achieving its objectives. Competitive analysis Some of the most significant competitors of Planet Fitness gyms include the LA Fitness, Anytime fitness and Curves fitness which are much older in the industry. The three main competitors have thousands of locations spread across the entire world giving them a competitive advantage in terms of client base. However, the planet fitness competitive advantage is based on the company’s ability to provide its clients with affordable prices and an intimidation-free environment. As a result, Planet Fitness has managed to become the fitness center of choice for most residents. This includes individuals who could not afford the expensive gym services offered by other companies as well as the elderly persons who prefer an intimidation-free environment. The Planet fitness has also managed to become a fitness center of cho.

1. Running head: MARKET POSITION ANALYSIS
1
MARKET POSITION ANALYSIS
7
Market Position Analysis for Planet Fitness
Ysidro Vasquez
Argosy University
September 13, 2018
Market Position Analysis for Planet Fitness
Introduction
Planet Fitness is a limited liability company and franchise
which deals with the provision of fitness amenities across the
USA. The company is aimed towards ensuring that there is a
provision of comfortable, hygienic, and judgment-free places
for each and every individual who wishes to pursue an active
and healthy lifestyle through engaging in physical exercise. The
fitness industry, as well as the concept of well-developed
bodies, can be traced back to what used to be referred to as
physical culture in the late19th century (Andreasson &
Johansson, 2014). In the past decades, there have been a
significant revolution and development in the fitness industry.
According to the International Health, Racquet and Sports Club
Association (IHRSA) (2015), in 2012, an estimated more than
75 billion dollars was generated in the form of revenue by the
various health and fitness companies around the globe.
Currently, the primary focus for gyms is centered on the general
changes from a male-dominated perspective of bodybuilding and
muscles development to a more gender-inclusive approach.
The number of individuals suffering from obesity and other

2. lifestyle disorders in the US has been considerably increasing
with time (Sassatelli, 2010). Consequently, there has been an
increased demand for gyms to help reduce the incidents of
obesity (Malley, 2014). Working out has also become an
important activity which is recommended by health practitioners
as it helps in shaping and burning off excessive fats from the
body (Dogan, 2015). As a result, planet fitness center in
Durham was meant to provide fitness services to the growing
health-oriented clients around Durham in North Carolina. The
gym has been relying on the provision of affordable services as
the primary marketing strategy. According to the interviewed
employee, the affordable pricing strategy has significantly
helped the store in achieving its objectives.
Competitive analysis
Some of the most significant competitors of Planet Fitness gyms
include the LA Fitness, Anytime fitness and Curves fitness
which are much older in the industry. The three main
competitors have thousands of locations spread across the entire
world giving them a competitive advantage in terms of client
base. However, the planet fitness competitive advantage is
based on the company’s ability to provide its clients with
affordable prices and an intimidation-free environment. As a
result, Planet Fitness has managed to become the fitness center
of choice for most residents. This includes individuals who
could not afford the expensive gym services offered by other
companies as well as the elderly persons who prefer an
intimidation-free environment.
The Planet fitness has also managed to become a fitness center
of choice for most women who are interested in aerobics, yoga,
fitness dancing, as well as lightweight lifting exercise. Women
are usually sensitive while choosing their preferred fitness
center. Most women usually prefer intimidation-free
environment; an environment exclusively offered by planet

3. fitness. The short-term membership plan offered by Planet
Fitness has helped many clients to join the gym services. The
company's competitive advantage will be long-term sustainable
since the company has already established its name as the gym
of choice for individuals who are in need of an affordable
intimidation-free environment to work out. To identify the
sustainability of the company's competitive environment, a
SWOT analysis of the company was conducted through the
interview whereby some of the Strengths, Weaknesses,
Opportunity, and Threats were identified.
Strength
Planet Fitness gym is known to provide its clients with an
intimidation-free environment, a quality which is offered by
very few gyms around the country. The fitness centre is also
known to attract and provide the best training environment for
beginners and sporadic gym users who would feel out of place
in other gym settings. Furthermore, the fitness company is
known to offer the most affordable rates in the industry with a
membership fee which goes to as low as 10 dollars a month.
This pricing strategy has been helpful in attracting many people
who have never been able to afford any form of a gym
membership plan.
Weaknesses
Other companies provide saunas, pools, and group fitness
classes while on the other hand Planet Fitness is known to offer
only a few amenities of this kind including the tanning
procedures, massage chairs and hydro massage facilities.
Nevertheless, these facilities are only available at selected
locations including the older branches at an extra cost.

4. Opportunities
The intimidation-free atmosphere and the availability of quality
equipment make Planet Fitness an ideal workout place for most
senior citizens as well as other self-conscious individuals. The
gym is also known to offer an unsurpassed quality health
training classes which center on flexibility and mobility training
such as step aerobics and yoga. The availability of such classes
has helped the gym in attracting more senior members and
women to the gym. Finally, the availability of several schools
and colleges around the region has enabled the facility to gain
many clients from the younger demographic.
Threat
The possibility of already established fitness companies
changing their marketing strategies in detriment to our methods.
The Planet Fitness Company has been marketing their products
by ensuring an intimidation-free environment for their client.
This approach can be easily copied by other fitness service
providers in the industry.
References
Andreasson, J., & Johansson, T. (2014). The fitness revolution.
Historical transformations in the global gym and fitness culture.
Sports science review, 23(3-4), 91-111.
Dogan, C. (2015). Training at the gym, training for life:
Creating better versions of the self through exercise. Europe's
journal of psychology, 11(3), 442.
IHRSA. (2015). The 2015 International Health, Racquet &
Sports Club Association (IHRSA) Global Report. The state of
the Health Club Industry. Retrieved from:
https://acewebcontent.azureedge.net/assetportfoliodownloads/In
dustry-trends-2015.pdf

5. Malley, L. D. (2014). Health, fitness, neoliberalism and niche
markets: Does Planet Fitness deliver?. Queen's University
(Canada). Retrieved from:
https://qspace.library.queensu.ca/bitstream/handle/1974/8621/M
alley_Liah_D_201401_MA.pdfSassatelli, R. (2010). Fitness
Culture.Gyms and the Commercialisation of Discipline and Fun.
New York: Palgrave Macmillan.
Appendix 1:
Fitness facilities Competition matrix
Planet Fitness
LA Fitness
Anytime Fitness
Curves Fitness
Affordable rates
2
1
1
0
Intimidation-free environment
2
0
0
1
Diversified client base
2
2
2
0
Availability of daycare facility
0
1
1
2

6. Availability of auxiliary amenities
1
2
2
2
Quality
2
2
2
2
Reliability
2
2
1
1
Location
2
2
1
0
Appearance
1
2
2
2
Advertising
1
1
0
1
Image
2
1
1
2
Total attractive score

7. 17
16
13
13
Customer satisfaction with the services offered by Planet fitness
and the competitors measured using a scale of 0–2 (0 = need not
met, 1 = need partially met, 2 = need fully met).
Running head: EXTERNAL ENVIRONMENTAL SCAN
1
EXTERNAL ENVIRONMENTAL SCAN
6
External Environmental Scan for Planet Fitness
Ysidro Vasquez
Argosy University
September 19, 2018
External Environmental Scan for Planet Fitness
The external environmental scan is an organizational process
where the external economic and non-economic factors are
identified and forecast into the future. Economic factors and
trend have been identified as one of the critical external
environmental factors which can affect a business. For quite a
long time the American economy has been stable with little
incidents of economic challenges (Sassatelli, 2010). The stable
economic growth has enabled most people to be able to afford
the gym services hence making the business sustainable.
Nevertheless, in the event of an economic recession, the
business may not be sustainable since most people treat the
fitness services as a luxury service.
Correspondingly, political factors and trend can present both
positive and negative effect on the fitness business (Sassatelli,
R. 2010). Political factors can significantly influence the
regulatory and legal factors. For instance, through political

8. factors and trends, the business licensing policies can change
either to the detriment or benefits of the business. Over the last
decade, the US government has been trying to make the country
the best business destination globally through the introduction
of investment-friendly policies that would encourage business
development and success (Planet Fitness, 2011). These policies
can be of significant benefits to the success of Planet Fitness
center business.
With regards to the societal factors and trends, initially, the
society stereotyped masculine individuals as criminals. This
form of stereotype on individuals who work out led to a
downfall in the number of individuals participating in fitness
activities (Sassatelli, 2010). Similarly, some employees would
not employ masculine people in the top management position
but rather in the lowest ranks as security personnel. These
occurrences led to significant downsizing in the number of
people attending gym services. Nevertheless, with the increase
in obesity in the US, the demand for gyms has significantly
escalated (Sassatelli, 2010). Medical practitioners have been
increasingly advising their patients on the importance of
involving themselves in physical activities to avoid certain
lifestyle diseases like obesity and other fitness complications
(Sassatelli, 2010). Furthermore, the Planet Fitness gym is
geographically located in Durham, North Carolina. Being a
highly populated urban area, the gym location will enable the
business to acquire many patrons.
Technology has also played a critical role in the development of
the health and fitness industry. In the advent of the social
media, businesses operations have significantly changed.
Currently, it is easier to advertise a business through the
various social media platforms. Similarly, through the online
picture sharing and exchange services, there has been a trend of
individuals trying to have the best body appearance possible.
This phenomenon where individuals are increasingly trying to
acquire a media perfect body physique has led to the increase in
the number of people attending the fitness classes (Greefield,

9. Almond, Clarke, & Edwards, 2015). Furthermore, technology
has led to the circulation of digital video, movies, and
commercials which promote the importance of working out. The
digital content can significantly help in increasing the number
of people in need of fitness classes and training.
The Porter’s five forces
The threat of new competition
According to Porter (2008), the threat of new competition in the
industry can directly impact the industries profitability. The
threat of new competition usually depends on whether the
industry under discussion presents low or high barriers of
market entry (Mathooko & Ogutu, 2015). As a result of the
escalating economic growth, more entrepreneurs have been
increasingly venturing into the fitness business, resulting in
increasing competition in the business sector (Planet Fitness,
2011). The potential of new competitors entry into the market
depends on several factors including; the economy of scale,
capital requirements, the competitors' reaction, and the buyers'
resistance to change their allegiance from one company to the
other (Mathooko & Ogutu, 2015).
The threat of substitute products or services
According to Porter (2008), a substitute is a business which
performs similar functions through different means. The
substitute threat is usually higher when the substitute services
can provide cost-effective trade-off which is better than that
provided by the original business (Jaradath, Almomani, &
Batanineh, 2013). In the case of Planet Fitness, the company has
resolved to use pricing strategies as their key competitive
advantage which shields the business from substitute products.
Bargaining power of customers
The bargaining power of customer or buyers usually increases

10. with the increase in service competition. Competition allows
clients to be able to compare offerings and make informed
choices (Porter, 2008). The power of the customer usually
increases with the increase in the number of options that the
customer has to choose from (Mathooko & Ogutu, 2015).
Planet Fitness has resolved to offer a unique intimidation-free
environment for its clients hence making them have little choice
regarding the best fitness centers that can offer the best training
environment.
Bargaining power of suppliers
According to Mathooko and Ogutu (2015), suppliers are the
organizations or individuals who provide materials which an
organization uses to produce its goods or services. The
bargaining power of suppliers usually increases with the
increase in demand for the products as well as the reputation of
the client organization (Porter, 2008). The lower the suppliers'
cost the lower the cost of service delivery and the higher the
business revenue.
The intensity of competitive/industry rivalry
Competition and rivalry are usually brought about by pricing
strategies, the introduction of new products, advertising
methods, and the improvement of services (Porter, 2008). In the
fitness industry, rivalry usually arises from the differences in
membership policies, and the diversity of services offered.
According to Mathooko and Ogutu (2015), there are two
structural factors which can influence Industry rivalry. These
factors include; the profile of existing companies (including the
number of competing organizations) and the industry context
(involves the political, economic and technological variables).
References
Greenfield, J. R. F., Almond, M., Clarke, G. P., & Edwards, K.
L. (2015). Factors affecting school physical education provision

11. in England: a cross-sectional analysis. Journal of Public Health,
38(2), 316-322.
Jaradath, S., Almomani, S., & Batanineh, M. (2013). The Impact
of Porter Model’s Five Competence Powers on Selecting
Business Strategy. Interdisciplinary Journal Of Contemporary
Research In Business, 5(3), 457-470.
Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive
forces framework and other factors that influence the choice of
response strategies adopted by public universities in Kenya.
International Journal of Educational Management, 29(3), 334-
354.
Planet Fitness. (2011). Planet Fitness marketing plan.
University of Wisconsin, Oshkosh. Retrieved from:
https://amberbemis.files.wordpress.com/2011/04/business371-
marketingplan.pdf
Porter, M. E. (2008). The five competitive forces that shape
strategy. Harvard business review, 86(1), 78-93.
Sassatelli, R. (2010). Fitness Culture.Gyms and the
Commercialisation of Discipline and Fun. New York: Palgrave
Macmillan.
Running head: ORGANIZATIONAL ASSESSMENT
1
ORGANIZATIONAL ASSESSMENT
2
Organizational Assessment
Ysidro Vasquez

12. Argosy University
October 4, 2018
Contents
3Executive summary
3Part one: internal environmental scan
3Vision, mission, and values
4Strategy clarification
4Cultural assessment
4Value chain analysis
5Summary of findings
5Part two: SWOT Analysis
5The SWOT Matrix
6Analysis
7Part three: balanced strategic scorecard
Organizational AssessmentExecutive summary
It is essential to conduct an internal scan on the iPad business
unit especially regarding uncovering the assets and operation
features of the group. The organizational assessment clarifies
how the guiding statements offer support to business strategies,
the value chain strength as well as the prevailing culture in the
unit supporting its policy. To obtain a deeper understanding of
the internal environment, it is mandatory to conduct a SWOT
analysis. The other part of the organizational assessment is the
balanced scorecard since it tries to align the iPad business unit
activities to its overall vision and strategies. This piece,
therefore, highlights and analyzes the obtained results from a
thorough internal environmental scan of the apple company,
iPad unit.
Part one: internal environmental scan
Vision, mission, and values
The iPad business units' mission and vision often mirror the
ones for the parent organization. Mission refers to the future of

13. computing as well as mobile media devises through product
innovation whereas the vision is becoming the leading dealer of
easy to utilize, high-quality goods integrating the resourceful
technologies with the aim of enhancing user experience
(Godfrey, 2015). The mission, values, and vision of this
business unit possess direct link with the strategy of the
company because the company's major emphasis lies on
innovation as well as creativity which is aimed at producing
high-quality products for the consumers' targeted segments.
Some of the values which are shared by the iPad unit comprise
of integrity, honesty, delegation, accountability, social
responsibility, and even excellence. The organization's mission,
vision, and values also have a consensus.
Strategy clarification
An interview which was conducted with a mid-level iPad
business unit's manager depicts that the members of the firm
including its CEO, managers, other senior executives, and even
subordinates possess a heightened knowledge of their business
techniques. This is because the business unit offers effective
and periodic strategy communication to all the employees
through weekly gatherings, online platforms, and even staff
notice boards (Khan et al., 2015). The manager also confirmed
that he enjoys a thorough understanding of the
interconnectedness existing between the values, competitive
advantage the market partition and the proposition of the
company. Creation of a strong value proposition together with
the enjoying a top market position helps the business unit in
having a competitive edge over the other firms in the same
industry.
Cultural assessment
Different values which are shared and the rules which are
unwritten govern the business unit. The most prominent is the
personal integrity, adherence to the ethical standards and
constructive problem solution govern this tablet sector of the

14. company (Smith, 2016). The shared values have resulted in a
vast corporate culture fostering the accountability principles,
teamwork, honest communication as well as respect for
diversity. To reinforce the vibrant culture, the firm trains and
offers incentives to its employees who have to lead by example.
What I learned from the manager interviewed that the iPad
business leaders strive towards also promoting this culture
through exhibiting the required values.
Value chain analysis
The principal activities of the value chain are the infrastructure
of the firm, procurement as well as the human resource
management processes. Technology plays a vital role in the iPad
value chain streaming. The whole value chain of this unit of
business right from the procurement of the raw materials,
management of logics, warehousing to distributing depends
heavily on the technological leadership (Tomczak et al., 2017).
Having qualified manufacturers, marketer, logistic personnel as
well as the R&D team also leads to value chains' value addition.
It is vital to note that, the iPad business unit similarly possesses
high impeachable customer service reputation at different
segments including post-purchase and pre-purchase.
Summary of findings
From the brief internal environment scan, it is depicted that the
mission, vision, and value of iPad business unit supports
directly the strategy of the business that focuses majorly on
innovation as well as the technological leadership. All the
employees also possess a great familiarity with the approach of
the company and the expectations, a factor which can be
attributed to the business' conscious decision of communicating
the very strategy to the workers (Tomczak et al., 2017). The
employees also enjoy a variety of shared values like the
effective problem solving, openness as well as strict adherence
to ethical standards. All these have contributed to the vibrant
culture development which is characterized by two-way

15. communication, teamwork, innovation, accountability and even
respect for diversity. Ipad business unit's value chain is also
seen to be innovative and responsive to both the needs of the
customers and those of the business itself. It achieves this due
to the sophisticated deployment of technologies in all the value
chain domains. Generally, the business unit's internal
environment is healthy.
Part two: SWOT Analysis
The SWOT Matrix
Positive
negative
internal
Strength
Strong presence of brand
Strong corporate culture
Strong financial position
Communication of market share
Weaknesses
High ipad prices
Negative publicity
Incompatible with other products
external
Opportunities
Product development
Expansion room

16. Increase of market share through strategic alliances
Threats
Stiff competition from amazon and Microsoft
Economic recessions
Changing landscapes of regulatory
Shifting threats of consumer
Analysis
The iPad business unit is built on different strengths which it
enjoys. The first strength comes from the parent company's
strong financial position. This financial standing offers the
business unit a competitive advantage over treats since it always
receives free advertisements and product upgrading allocations.
The unit also benefits from the strong brand loyalty and
presence of the apple company. Other of its strengths is
effective leadership, corporate culture, an innovative
international supply chain as well as the commanding market
share.
However, despite the strengths, the business unit similarly has
some serious weaknesses. The primary flaw is derived from the
product pricing. As the cost of the average tablet is 250 to 300
dollars by the rivals, iPad sells it's at 400 dollars and beyond
(Smith, 2016). This high end strategy can discourage the
customers especially those coming from middle-class
backgrounds. Another potential weakness is the incompatibility
of their product with such platforms as windows. It dissuades
the customers from purchasing Apple products and even the
iPad. Furthermore, technical problems which are associated
with the functionality of the product and even its adverse
publicity problems have also undermined the firm's operations.

17. The scan also reveals some iPad opportunities for exploitation.
The primary opportunity for this unit is the internal expansion
which is achievable through the strategy of market development
(Godfrey, 2015). Even if the unit enjoys a strong market
presence, most of the stores it has been situated in first world
nations like Western Europe and North America. The unit can,
therefore, boost its brand recognition by establishing markets in
developing countries which express surging demand for the
products. The financial standing, as well as the substantial
market share, can help the business expand. Other opportunities
include product differentiation and product development.
The business unit should nevertheless be wary of the threats
which are seen to confront the company. The uncertain
economic condition throughout the world, for instance, can
undermine the sales due to diminishing the power of spending
among the customers. The stiff competition from the rivals is
another significant threat of the unit (Godfrey, 2015). All the
iPad rivals sell their products cheaper than the iPad hence
posing a primary threat to its market share. The continued
changing of the legal requirements in various nations is also a
threat to the firm.
Part three: balanced strategic scorecard
The balanced strategic scorecard is essential for the company's
activities alignment to its overall vision and strategy. Other
than measuring performance against the primary strategic goal,
the scorecard can also be vitally used since it improves the
internal and external communication (Tomczak et al., 2017). In
the scorecard, the primary interest areas include internal
processes, financial, stakeholder as well as growth and learning.
Below is a balanced scorecard which depicts the perspectives,
objectives as well as success measures.
perspective

18. Activities/objectives
measures
financial
Reduced cost of unit
Grow revenue
Increase market share
Increase utilization of assets
Improvement of productivity percentage
Revenue growth percentage (15%)
20% by first year
Capacity utilization percentage (85%)
customer
Bolster customer relationship
Becoming an innovative supplier
Improvement of overall reputation
Delivering timely and quality products
Customer account share
Percentage of new products sales
Customer returns and percentage of OTD
Customer ranking and retention
process
Enhance efficiency of manufacturing
Product development excellence
Improve supplier relationship

19. Distribution network expansion
Rates of PPM and cycle time
Time-to-market
Number of new distribution
Certified suppliers percentage (less than 15 per year)
Learning and growth
Grow human capital
Leverage information technology
Build a change-supporting culture
Employees increase
Number of shared best practices
Customer databases increaseReferences
Godfrey, R. (2015). Strategic Management: A Critical
Introduction. Routledge.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical
analysis of internal and external environment of Apple
Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Smith, B. (2016). Nature and Geography: Tragic Voids within
Marketing Textbooks and the External Business Environment.
In Global Perspectives on Contemporary Marketing
Education(pp. 47-64). IGI Global.
Tomczak, T., Reinecke, S., & Kuss, A. (2017). Strategic
Marketing: Market-Oriented Corporate and Business Unit
Planning. Springer.
Running Head: BUSINESS

20. BUSINESS
2
Business
Ysidro Vasquez
Argosy University
Capstone
September 26, 2018
Executive Summary
This report basically focuses on Planet Fitness. Planet Fitness is
an American business organization that offers a wide range of
fitness programs. This report looks at the company's external
environment and various factors that affect its operations. It is
realized that the ability of a business organization to effectively
operate depends on a number of factors that exist in its business
environment. This report is attention to the external
environment by looking at the various factors and forces that
Planet Fitness needs to pay attention to in order to operate
effectively.
The report starts by looking at the company's value position.
This is a statement that a business organization uses to make a
summary of why a consumer should buy its products or
services. It is used to convince potential customers. The value
position of Planet Fitness is based on the idea that the company
provides high-quality services to its clients at affordable rates.
The report also looks at the market position of Planet Fitness.
This basically refers to the perception that a customer has of a
given brand or product as compared to its competitors. Planet
Fitness has a strong market position given the fact that it
operates across the United States. Consumers believe that the
company provides them with the best fitness services.
Lastly, the report focuses on the external environment by

21. looking at the five forces as well as the strategic issues that the
company should address. One of the forces that exist in the
external environment is the threat of new competition. In the
modern society, there is an increased need for fitness. For this
reason, many businesses are coming up to offer the same
services. This implies that there is a great chance of
competition. This creates a strategic issue that the company
needs to address. One of the issues is concerned with increasing
the number of outlets to make sure that it penetrates the market
even more.
Table of Contents
1.0 Introduction
……………………………………………………………………
4
1.1 Value
Proposition…………..……………………………………………
4
1.2 Market
Position…………………………………………………………
5
1.3 Competitive
Advantage…………………………………………………
5
2.0 External Environmental
Scan……………………………………………………
6
2.1 Assessment of the External Factors (Five
Forces)……………………..
6
2.1.1 The Threat of New Competition…………………………….
6
2.1.2 The Threat of Substitute Services……………………………

22. 7
2.1.3 The Bargaining Power of Customers………………………..
7
2.1.4 The Bargaining Power Suppliers……………………………
7
2.1.5 Industry Rivalry…………………………………………….
8
3.0 Strategic
Issues…………………………………………………………………
8
3.1 Value
Proposition………………………………………………………
8
3.2 Diversification of
Services……………………………………………..
8
3.3 Quality of Products and
Services……………………………………….
9
3.4 Customer
Satisfaction……………………………………………………..
9
3.5 Market
Penetration…………………………………………………………
9
4.0
Summary………………………………………………………………
…………..
9
5.0
References……………………………………………………………

23. ……………
10
1.0 INTRODUCTION
Planet Fitness is a business organization that basically offers
fitness services. It is an American based organization that are
reported to have more than 1500 locations across the country
(Planet Fitness, 2011). This is a business organization that saw
the opportunity in the market and established itself to serve the
demand. Despite the challenges that exist in the fitness
industry, Planet Fitness has ensured that it does whatever it
takes to make sure that it provides the best services to its
customers. It should be kept in mind that the chances of a
business to survive in a competitive environment depends on the
quality of its products and services. For this reason, the
management team of Planet Fitness has ensured that the
company provides the best services for the interest of attracting
and retaining customers. Since its inception in 1992, Planet
Fitness has remained at the forefront as a result of the high-
quality services that it offers.
1.1 Value Proposition
A value proposition is basically a statement that clearly
identifies what a business or its brand will offer to the market.
When a business is established in the market, it usually looks
forward to providing specific products or services. It is not
necessary for a customer to visit a business to know the specific
products offered, they can get this through the value proposition
of such a business. The value proposition for Planet Fitness is
"Welcome to Planet Fitness. Home of judgment-free zone." This
is a unique value proposition that differentiates Planet Fitness
from the rest of the fitness centers and gyms. Basically, it is a
promise that each member or customer will work at their own
pace to achieve their own results. It is an assurance that nobody
will push a customer to the limits. In other words, customers
would feel safe and at home because each will be working at

24. their own rate.
1.2 Market Position
In the business environment, a market position basically refers
to the perception that the customers have about a given brand
that they consume. Considering the relevance of customers to a
business, what they have to say about it significantly affects the
company. It is, therefore, important for businesses to focus on
quality so that they can create a positive perception of
themselves. Given the services offered by Planet Fitness, the
company has managed to create a positive market position. The
company offers high-quality services to its customers at
affordable rates. There is also a flexible program that fits the
needs of each customer. This makes the customers feel safe and
comfortable thereby speaking positively about the company and
its products.
1.3 Competitive Advantage
As the name suggests, this an advantage that a business has over
others that operate in a similar environment to it. For the
interest of being competitive, it is necessary for an organization
to come up with a strategy that will enable it to stay ahead of its
competitors for its own benefit. The greatest competitive
advantage for Planet Fitness is its high-quality services, low
rates and a flexible fitness program for its customers. The
company ensures that it offers the best services to its customers.
This makes them feel the value of their money. Unlike other
gyms, Planet Fitness allows each customer to work at their own
pace without having to be judged or being pushed to achieve
more than what they can. This makes the customers feel more
comfortable at Planet Fitness as compared to other fitness
centers. This is a great competitive advantage that available in
the company to attract and retain many customers.
2.0 EXTERNAL ENVIRONMENTAL SCAN
The external environment is an environment that exists outside

25. a business organization. This is an environment that a business
organization cannot single-handedly control (Craig & Campbell,
2012). However, an organization can adjust its strategies to
make sure that they adapt to the changes in the external
environment. To effectively survive in the external
environment, it is important for a business to conduct an
external environmental analysis so as to understand the various
factors that affect its operations. As a result, necessary
adjustments and modifications can be made to the company's
strategies so that it can fit into the external environment.
2.1 Current Environment
Currently, Planet Fitness operates in an environment that is
affected by many factors. The company is affected by
technological factors. Given the fact that fitness centers and
need to utilize technology, there has been an increase in
technologically advanced equipment that is used in such
businesses. This affects Planet Fitness in the sense that it has to
make decisions of acquiring the latest equipment that will
enable its customers to exercise effectively. The company is
also affected by the political factors because it is the political
class that makes the rules and regulations that govern
businesses which operate in different areas.
2.1 Assessment of the External Factors (Five Forces)
2.1.1 The Threat of New Competition
Planet Fitness is threatened by new competition because new
businesses are entering the industry. This implies that the
company is at risk of losing part of its market to its competitor.
It is, therefore, necessary for the company to increase its
competitive advantage so as to stay relevant.
2.1.2 The Threat of Substitute Services

26. This is a threat from different businesses that offer similar
services but in a different way. This force is usually relevant
when the substitutes our cost-effective. However, Planet Fitness
uses its low pricing strategy to keep substitutes away. For this
reason, the company has managed to effectively take care of
this force. Businesses whose prices are higher than average and
the ones that are usually threatened by substitutes. Given the
fact that Planet Fitness has fair prices, it does not have to worry
about the threat of substitute products and services.
2.1.3 The Bargaining Power of Customers
The bargaining power of customers increases with competition
(Porter, 2008). When there are many businesses offering similar
products, the customers will have an option to choose from
others. Since Planet Fitness understands that customers can
decide to purchase from competitors, the company has decided
to deal with this first by offering unique services which
competitors do not have. For instance, the company has created
a very comfortable environment for all customers to exercise at
their own pace. This is a strategy that has effectively dealt with
the bargaining power of customers.
2.1.4 The Bargaining Power Suppliers
Suppliers are the organizations or individuals that avail the
different materials that businesses use to provide the products
and services to their customers (Jaradath, Almomani &
Batanineh, 2013). When there is an increase in demand, the
bargaining power of suppliers also increases. Given the rise in
the number of fitness centers in the United States, the suppliers
have a strong beginning power because they can drive up the
prices. Planet Fitness seeks to deal with this force by creating
positive relationships with its suppliers as well as engaging in
effective supplier management.
2.1.5 Industry Rivalry

27. This refers to the rivalry between existing companies. Basically,
it is the competition that exists within an industry between
already established businesses. Industry rivalry is a strong
external force that should never be ignored. Intensive
competition can make a business irrelevant because it can lose
all its customers. As stated earlier, there is increasing
competition due to the increase in the demand for fitness
services. This implies that Planet Fitness faces stiff opposition
and rivalry from other players in the market. This is a real
threat because, if not addressed in the right manner, the
company is at risk of running out of business due to intensive
competition.
3.0 STRATEGIC ISSUES
3.1 Value Proposition
A value proposition is a powerful tool in marketing. It can
enable a company to attract and retain customers because it
summarizes what the company is all about (Fernando, 2011). In
the case of Planet Fitness, the company's value proposition is a
strategic issue that should be focused on. It is important for the
company to make the value proposition easier to understand. As
it is now, an average potential consumer might not clearly
understand what it is all about.
3.2 Diversification of Services
As aforementioned, the company focuses on a range of fitness
programs such as dancing, yoga, and aerobics among others.
Despite this, it is important for the business to diversify its
range of product to boost its competitive advantage. That is stiff
competition in the market and only diversification can solve this
problem.
3.3 Quality of Products and Services
Due to the steadily increasing competition in the fitness
industry, Planet Fitness needs to focus on improving the quality

28. of its products and services even further. This will give the
company an added advantage and reason as to why customers
should consume its products and not those of competitors.
3.4 Customer Satisfaction
Customer satisfaction is also an issue of concern for Planet
Fitness. Despite the quality of its products, the company's needs
to provide completely personalized programs that fit the
specific needs of individual customers.
3.5 Market Penetration
Despite its 1,500 locations across the United States, Planet
Fitness needs to penetrate more in the market. This is a strategic
issue because it can assist the company to increase its market
share.
4.0 Summary
The business environment is dynamic and is intensely affected
by different factors. Regardless of the industry in which a
business operates, it is necessary to pay attention to the factors
in the external environment. It is recommended for businesses
to understand the external environment and to effectively adjust
their strategies to fit in (Jaradath, Almomani & Batanineh,
2013).
5.0 References
Craig, T. & Campbell, D. (2012). Organizations and the
Business Environment. London: Routledge.
Fernando, A. (2011). Business Environment. London: Pearson
Education.
Jaradath, S., Almomani, S., & Batanineh, M. (2013). The Impact
of Porter Model’s Five Competence Powers on Selecting

29. Business Strategy. Interdisciplinary Journal Of Contemporary
Research In Business, 5(3), 457-470.
Planet Fitness. (2011). Planet Fitness marketing plan.
University of Wisconsin, Oshkosh. Retrieved from:
https://amberbemis.files.wordpress.com/2011/04/business371-
marketingplan.pdf
Porter, M. E. (2008). The five competitive forces that shape
strategy. Harvard business review, 86(1), 78-93.