Gym Pest Analysis

1.0 Introduction:

The aim of this report is to examine the external environment of Fit Me Gym business including porter’s five forces and PEST analysis. Also, illustrate their competitors and classify their position in order to compete with their rivals. As well as explain the nine business model factor and their effect in the business and factors that lead to success of the business.

2.0 The business:

The business idea is to open a gym for kids aged from 5 to 12 years old. This gym is located in Enma Mall East Riffa area. This Gym will provide children with fun, educational and social activities such as Instruments Hall that includes several Gym Equipments and supervised by qualified personal training, Aerobics classes, dancing classes contains

Most of buyer in this industry is parents who have children aged between 5 to 12 years old, so the prices must suit all the different income levels to create customer satisfaction through value chain. In addition, the minimum wages of Bahraini is not less than BD 300 (Bahrain minimum wages, 2012). Moreover, the gym will provide customers with many offers such as when any children register in the gym he will get a back bag, T-shirt, water bottle and cap. Also, the buyer will receive discount if more than one person from the same family register on the gym (“porter”,

Therefore, it is hard for one supplier to raises their prices as there will be another alternative supplier who offers the same quality product with low cost, hence, the buyer could easily switch to another supplier and minimize their expenses . In addition, fitness industry is not relay too much on their suppliers, because in the starting of the business they usually make large numbers of equipments orders that will be around in the gym for long period of time. The manager should ensure the quality and safety of equipment since this will be for children. As well as, the price of equipments must be reasonable for manager because high price will lead to high membership fees. Also, they must bear in their mind that the suppliers of the ingredients used to prepare healthy foods that will be provided in the coffee shop are halal products and suit the Islamic requirement and safe for children. Fit me gym manager must be aware in his choice of suppliers because there are many suppliers of fitness equipment around the world each one has different prices and quality, it is easy to switching to another products, the products has similar quality, easy to substitute one products with another and the customers can become familiar to one supplier than another (“porter”,