UR UMUC Healthy Fitness Center Analysis - Case Study Example

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This is the customer’s ability to purchase the UR UMUC Healthy fitness center’s products at reasonable prices compared to other corporations (Baltzan, 2013). In UR UMUC Healthy Fitness Center, an increase in the buyer’s power will significantly boost the business’s performance. Therefore, the business will yield to the setting of reasonable prices intended to attract a large client pool.

Supplier power. This is the power of suppliers to supply the center with the required quality equipment at a much higher price (Baltzan, 2013). Supplier power brings a neutral impact on the business. The above force is also not vital and ought not to appear among the institution’s strategies.

The threat of substitute products or services. This brings out how the customers can switch to the competitors’ services and products at the expense of UR UMUC Healthy Fitness Center merchandise (Baltzan, 2013). This force negatively affects the fitness center because it reflects a high loss rate in the center. It is also fundamental to include strategies and policies that attract competitors’ customers to opt for our products and services.

The threat of new entrants. According to this force, profitable markets like what Ur UMUC fitness health center is enjoying, lead to an increase in new enterprises in the market (Baltzan, 2013). This force hurts the center as it, unfortunately, decreases the profit scale for all the existing firms in the industry. Yes, it is vital to consider the factor while devising strategies for avoiding competition against UR UMUC Healthy Fitness Center as well as coming up with ways of competing with new entrants.

Rivalry among existing competitors. The intensity of the rivalry between competitors is a major determinant of the UR UMUC Healthy Fitness Center’s success (Baltzan, 2013). This factor neutrally affects the center as UR UMUC Healthy Fitness Center can be the most preferred destination by numerous customers. The force ought to be included in the strategy-making process to ensure the center does not incur major losses due to competition. If the company’s competitors provide quality services and attractive products, the center is most likely to have higher losses.

Porter’s three Generic Strategies are vital in a business to ensure they have attained a high competitive advantage (Baltzan, 2013). For UR UMUC Healthy Fitness Center to improve and achieve a 21st-century standard, I opt to employ the differentiation Strategy. This entails the business should strive to become unique in the market with its competitors (Baltzan, 2013). The strategy also encompasses an emphasis on branding, advertising, design, service, quality, and new product development (Baltzan, 2013). For instance, UR UMUC Healthy Fitness Center can be exceptional in providing the best customer service in the industry by studying its client’s behavior. In addition, we can be unique by providing Wi-Fi services in the center to achieve technological advancement level, hence ensuring the clients feel the institution not only avails the required necessities but aids them to be in touch with whom they love or need.

The most important business area which UR UMUC Healthy Fitness Center ought to improve is the support value activities offered by the business, for instance, technology development and procurement. According to Walmart’s history in their activities, the company’s study displayed that they lost between 2% to 8% of their customers due to their ill reputation (Plambeck & Denend, 2008). In 1989, the company launched a campaign of selling environment-friendly products (Plambeck & Denend, 2008). However, Wal-Mart did not properly monitor the products from the supplier used in the campaign. The latter resulted in extremely bad publicity as experts discovered the products contained chloride elements that were not environment friendly (Plambeck & Denend, 2008). Consequently, wall-mart opted to incorporate a low-cost strategy that will aid it to compete with other operators. I have selected the support value since the ability of the supplier to provide quality products and the center attaining higher technological advancement guarantees the center’s ability to meet its clientele’s satisfaction. ...Download file to see next pages Read More