Fitness Economics - Industrial Organization Assignment Title Boxing is a boxing club committed to giving all ages, fitness levels, and body types an intense workout and a strong community. This MMA style workout is a power hour combination of boxing, kickboxing, and core work that can burn up to 1,000 calories an hour. Title Boxing Clubs began in 2008 and have since then expanded worldwide. A huge part of Title’s success is the Title brand which is recognized globally. The company requires each franchise to consist of the same design/layout: “to have a regulation-size boxing ring, a heavy-bag boxing station, a speed bag and double-bag station, cardio equipment, free weights and a retail shop” (IBIS). Title Boxing “has grown from 10 units in …show more content…
There are many other boxing clubs/gyms in the industry that compete globally. 2) Homogeneous Product- The primary products of this industry are: private boxing classes, group boxing classes, merchandise and apparel. All of these products are similar to what other boxing clubs also offer to their customers. 3) Free Mobility of Resources- Since this is a fitness service, and boxing cannot be patented, mobility is free in and out of the market. 4) Perfect Knowledge- With the Title brand being a very admirable and well-known brand, a lot of Title Boxing Club’s success has come with the brand loyalty attached to the Title name. While there are many other boxing clubs in the industry, Title had already established a name for itself and its brand--making it easier to gain and maintain a customer base/following. 5) No Externalities- No externalities are …show more content…
According to the Centers for Disease Control and Prevention, as of 2009, approximately 80% of people could benefit from exercise programs, such as boxing--only 18.8% of adults aged 18 and older met physical activity guidelines for aerobic and muscle-strengthening physical activity (IBIS). The clubs and gyms attempt to minimize their costs by hiring part-time employees and hiring their trainers on an as-needed basis. The boxing industry in particular has “moderate capital intensity despite the low barriers to entry, because the total start-up costs are low, but split relatively evenly between capital and labor” (IBIS). Market Conduct: In terms of pricing in this market, Title specifically offers a boxing membership for roughly $100 a month and drop-in/walk-in classes are $20 per class. Another competitor, Hot Box, offers a similar rate at $80-$90 a month for a membership. After researching other boxing clubs and their memberships, there is not a huge difference in what each competitor in the market has to offer. Many have the same design in classes: a 60 minute session that combines boxing and kickboxing to give customers a full-body workout. Prices fluctuate slightly from gym-to-gym, but not