Analysis of Health Club Market in UK Essay Example | Topics and Well Written Essays - 2500 words

Analysis of Health Club Market in UK - Essay ExampleIn the number 1 part of the project, an intentness analysis of the health club market in the United Kingdom go out be done. In the next part, an opportunity and a threat analysis will be performed for the major players in the health club market of the United Kingdom. Finally, in the third part, the business strategies of these competitors will be described.There are a large number of health clubs operating in the United Kingdom. An industry analysis of the health club market will be done to understand the threat that these companies hold from one another. The industry analysis will be done using Porters five Forces ModelRivalry from Existing Firms - In an industry, there are a large number of competitors competing in order to achieve competitive advantage. The intensity of this competition is one of the major determinants of the industry analysis. The business strategies of a firm help it to distinguish from the competitors. The merger activities of the health clubs have increased the competition in the market. Whitbread Plc has acquired David Lloyd unoccupied in the year 1995. Canon and First leisure have also merged their fitness and health clubs. The merger or acquisition of the companies helps in the market extension as well. Thus the threat from the competitors in the health and fitness industry is very mellow.A threat of New Entrants- If the existing market yields high return to the companies operating in the market, it attracts new entries. But the entry of the new firms results in the decrease in the profitability of all the firms operating there. If barriers are not provided to these new entrants, the profitability of the firms will show an irregular decrease.