PPT

Report
Anytime Fitness
Tingting Shen (Laura)
Ying Liu (Ivy)
Xinwei Hou (Sylvia)
Wenlong Su (Vince)
History
A large 24-hour fitness franchise
The first club was established in Cambridge, MN, in 2002
Robust rates
The factors to success
Widely recognized
Global Market Assessment
 Fitness industry meets the demand for health
 Fitness industry has huge potential
 Fitness is popular
 The development in some countries
 Supporters
Future Outlook in China
 A good time to extend to China
Ample room for development
 Chinese have the ability and willing to pay
for the fitness fee
 Customer groups
---Children
---Women
---Businessmen

Two Competing Companies
Nirvana Fitness
CSI-bally Total
Fitness
---most relevant to not relevant
Demographics
 Economics
 Government
 Culture
 Physical Infrastructure
 Communication Infrastructure

Demographics
Total Population ---1,338,612,968
 Middle Class Size--- 70 million people $10,000 US income
 average age --- 35.2
 Urban/ Rural Composition--- 43% urban population

Government
Government Stability
Government attitude to FDI
Legal System
Economics
GDP and GDP Growth Rate
 Per Capita GDP
 Consumer Inflation
 Potential Market

Culture



View point of beauty
Willingness to Stay Fit
General Perception towards foreign business
Physical Infrastructure

Public transportation
Communication Infrastructure

Daily newspapers --- more than 40 million

Television users --- 30%

Internet users --- 298 million (2008)
Key Factors
Public
transportation
GDP per
capita of China
Legal system
People’s
attitude to
fitness
Competitive Nations--- JAPAN
•Pursue beauty
•Improved stature due to exercise
•Stress on health
The third-largest economy in the world
Strong consumption power
Open consumption idea: don’t much care
about price
Disadvantages

Densely-populated country--- High rent

Ageing problem, low birth rate and
population growth rate--- Decreased
demand

Economic risk exists after the financial
crisis
Competitive Nations--- GERMANY
•German love sports
•Fitness industry is the 2nd largest market in Europe
•Large medical insurers reimburse fitness costs
--- 30 to 200 euro
•Government promotes national to do exercise
•Fitness industry:
•Rapid developed in late 1990’s--- Closed due to improper
management and service in 2002--- Steady rise from 2006
•Fitness is an active and forward market
Disadvantages

High income tax: 33% to 37%

Indirect tax increased 3% from 2008

Fierce local competition--- special services
Short-Term Recommendations
Establishing partnerships Residential
Communities
 Advertisement
 Local employees are better
 Build up the comfortable environment

Long-Term Recommendations
------next-five years

100% copy

Build up clubs around the super cities, and
then build up the flagship in super cities.

Acquisition
Long-Term Recommendations
------second-five years

Enlarging the range of services or products

Build up the corporate culture depends on the
culture difference
Conclusion

Anytime Fitness have the ability to develop a global market expansion
strategy

Anytime Fitness must seek a new market to develop their business

The business environment in China is favorable for Anytime Fitness

Chinese market has huge profits and intense competition at the same
time

Japan and Germany also have the market potential to develop fitness
industry


The high-equipment and friendly atmosphere are the key to success
Anytime Fitness must has a short and long plan to develop

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