Environment and Industrial Analysis of a Business - Assignment Example

The incoming businesses have a competitive disadvantage within the industry. Even though completion increases cause adverse effects on existing businesses, it is also helpful as it will help Good health fitness center become more efficient and thus provide quality services (Abrams, 2003).

The bargaining power of suppliers
According to the Good Health Fitness Center, it is evident that the power of suppliers merely affects the business. This is because the ways of transacting are service oriented. To offer a service in the fitness center, instructions get and the only material supply needed is readily available in its market. These supplies include things like weights, food, and gym instructors (Cyr, 2007).

The bargaining power of buyers
The target market for Good Health Fitness Center mainly comprises the middle-aged and the old who want to reduce their weight. A case study of Canada would show that they make up the largest share of the population. This means that it is a threat to the business because of the large number.

Threat of substitute
Bearing in mind that this is the technology era, Good Health Fitness Center may face several other threats in the market. Substitutes for health fitness exist. However, the business will survive this threat by launching a campaign against the substitutes which include steroids and slimming pills. It is imperative to let the public and potential customers, of the impending danger, and side effects of using the substitutes. This way, the business will survive the threat (Abrams, 2003).

The intensity of rivalry among competitors
Within the fitness industry in Canada, for example, there are many businesses with the same goal of having as many customers as possible. However, the intensity of rivalry does not seem too intense as customers can choose which programs best work for them from different centers (Abrams, 2003).

Competitive advantage
The good health fitness center has various sources of competitive advantages. One of the sources would be by ensuring a well-equipped and developed marketing team. This forms a good competitive advantage in the market. The targeted demography forms another advantage that the business has; this means that making supporting services and distinct program sessions might help lure many customers to the business. These programs should be distinct from each other as the demographic targeted is not the same. Other businesses tend to lack supporting services and distinct programs. Therefore, it becomes the source of a competitive advantage.

International entry modes
Forming strategic alliances with other businesses in foreign countries would be preferable for Good health fitness center. Taking Canada as a good example, it is evident that one would need a partner who is already in the business in that country. This would be to avoid sanctions and barriers from others in the same business in that country.
Strategic alliance makes communication easier where language barriers exist in the market. However, Canadians speak English thus there would be no need to worry about that.

The acquisition would be the other mode of getting into a foreign market fast. It would be preferable as it opens a wide range of markets from which to select. However, it also would need a lot of money to acquire a stake in a foreign company or even buy it whole (Cyr, 2007).

Scan
Scanning is essential for any business, especially those dealing with unstable markets. A good health fitness center thus requires this to help it uncover any eventualities in the future. Use of modern technology such as software can be used in determining the number of people with reported suffering from obesity. This would help the manager to organize (Cry, 2007).

Monitoring
Through monitoring, it would be possible to identify any changes in the environment of the industry. This helps the business to forecast and make the necessary planning within the business.

Forecasting
It is important to the business since it is involved with the findings from scanning and monitoring. It would help the business make useful projections in terms of changes in the market or prices. The proximity towards these eventualities is also important for the business so that time for making changes or improvements is determined (Cyr, 2007).
Assessing

Assessing is equally important as the other three processes. The business must assess the findings of the above-mentioned processes. This is because it makes the right strategy for the business and thus defines the way forward. Read More