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Business plan Essay Example

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Business plan

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Growth rate in this industry is quite favorable as consumers of many different demographics have become focused on using exercise as a means to enhance lifestyle and personal health. These trends are noticeable in the national business focus reducing saturated fats and offerings of healthier food options, and Shapes! can capitalize on these social trends by using innovative marketing to appeal to this new lifestyle focus. Curves, a like competitor on this market, has found massive success with their lower-cost business model by offering in-house equipment in a mall environment and Shapes! will benchmark many of their best practices on the historical successes of Curves.There is little risk of new entrants in this marketplace because of the high costs of operations associated with owning a building and because the local region cannot support anymore large-scale competitors based on consumer demographics. Again, this is an advantage for Shapes! low-cost business model.These numbers take into consideration that many customer demographics represent niche markets of obese or physician-referred clients, as well as the more dedicated consumer with a desire for alternative, low-cost exercise and therapy. The baby boomer generation, especially female, will consist of the largest consumer audience and will therefore make up the most profitability if brand loyalty can be established and a positive local reputation.In the region, there are higher-priced competitors including Gold’s Gym, Curves and Bally’s. These competitors typically charge between $150 and $500 per month, based on individual membership dues and plan options. This does not represent a high volume of competition and both of these businesses have very high operating costs as they own their own buildings and equipment. Unlike our competition, Shapes! will be utilizing low-cost rental property in a strip mall environment with adequate square footage, taking advantage of discounted monthly rent provided in the local community as a means to invite consumerism during a period of economic downturn. has a much better operating margin than competition.Competitors also promote their products based on the end user: The customer. Gold’s and Bally’s attempts to link beauty with consumer attributes, therefore positioning their businesses in terms of user. This represents a significant competitive advantage for Shapes! as it can give a perception of value

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References

:

U.S. Census Bureau. (2009). Consumer Demographic Profiles. www.census.gov.

Bally’s. (2008). Bally’s Total Fitness Program. www.ballys.com.

Curves. (2008). Buy a curves franchise. www.curves.com.

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preview essay on Business plan
  • Pages: 10 (2500 words)
  • Document Type: Case Study
  • Subject: Unsorted
  • Level: Masters
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