26.08.2019
 Essay regarding BALLY TOTAL FITNESS

BALLY TOTAL FITNESS

GROUP 2

BUSINESS PRESENTATION

BALLY TOTTAL FITNESS MEMBERSHIP

• AT FIRST A WAGERING EQUIPMENT ORGANIZATION, BALLY TOTAL

FITNESS IS CONTINUING TO GROW TO BECOME A LEADING FIRM IN THE

U. T. HEALTH CLUB INDUSTRY. IT HAS GROWN ITS INCOME

OVER THE YEARS TO $954 MIL IN 2003.

• BALLY STARTED THE ROOTS IN THE HEALTH AND RUGBY

CORPORATION BY PURCHASING AILING HEALTH CLUBS IN 62 AND LATER

IN 1990'S DIVERSIFIED AND RECHRISTENED TO BALLY

ENTERTAINMENT

IS DEFINITELY THE HEALTH CLUB INDUSTRY STRUCTURALLY ATTRACTIVE OR UNSIGHTLY?

PORTER FIVE FORCES RESEARCH OF THE MARKET

BARRIER TO ENTRY

• CAPITAL EXTENSIVE

• BRAND LOYALTY

• MODERATE

NEGOTIATING POWER OF

PROVIDER

• GEAR SPECIFICITY

• FEW SUPPLIERS

• DRIVE VOLUME PRICE CUT

WITH

• LIFETIME OF GEAR

• LARGE

RIVALRY

• OFFER SAME SERVICE

• PRODUCT

DIFFERENCIATION

• INDUSTRY

SEGMENTATION

• HIGH

DANGERS OF SUBSTUTUTE

• NOT FOR PROFIT ORGANISATIONS

• WORK FROM HOME CENTRES

• PERSONAL TRAINERS

• HIGH

NEGOTIATING POWER OF BUYERS

• GROWING MARKET

• LARGE ZERO OF CUSTOMERS

• FEW PLAYERS

• SUBSTITUTE PRODUCTS

• HIGH

ESSENTIAL SUCCESS ELEMENT IN THE MARKET

STRONG BRANDNAMES

EXCELLENT CUSTOMER SERVICE

PROXIMITY OF CLUBS TO CUSTOMERS

ATTRACTIVE/ FLEXIBLE CHARGES

FACILITIES AND PHYSICAL APPEARANCE

PERSUASIVE AND CONVINCING SALES HYPE

SKILLED AND MOTIVATED STAFF

DIVERSIFIED DEALS AND COMPANIES

IS ACCOUNTING ADJUSTMENT A ONE TIME ISSUE

THE ACCOUNTING ADJUSTMENT IS A ONE TIME CONCERN. THE

FIRM WAS INITIALLY USING ACCRUAL REALIGNMENT BUT

CHANGED TO CASH BASIS ACCOUNTING

EVALUATION OF BALLY'S STRATEGIC PLACING

STRENGHTS

• BRAND NAME

• TOTAL FITNESS PACKAGE

• NEW EXPERIENCED CEO

• ADS RENOVATION

• LARGE NUMBER OF CLUBS AND

INTERNATIONAL LOCATIONS

• PUBLIC TRADED CLUB

WEAK POINT

• EXCESSIVE OVERHEAD (TOO MANY STAFF)

• REMARKABLY LEVERAGED

• ACCOUNT MALPRACTICES

• REDUCTION IN SHARE PRICE

• DISCONTENTION OF CLIENTS

• 3-YEARS BINDING AGREEMENT

OPPORTUNITIES

• CHANGE IN DEMOGRAPHY

• EMPHASIS ON PAY AS YOU GO

• SALES OF BRANDED ITEMS ONLINE

• GROWING MARKET (LIFESTYLE)

HAZARDS

• IMPROVED COMPETITION

• LOW CLIENT RETENTION

BALLY'S COMPETITIVE ADVANTAGE

• THE OFFERED BUYER GREATER VALUE WITH A EXTENSIVE

PACKAGE OF NUTRITIONAL AND EXERCISE PROGRAM CUSTOMIZED TO

A PERSON'S UNIQUE METABOLIC RATE

• INCREASING TO COVER CHANGING DEMOGRAPHY (AGE BRACKET)

• WIDE OUTREACH TO CONSUMERS

WITH MORE THAN 410 OUTLETS NATIONALLY AND INTERNATIONALLY

• LARGE POOL AREA OF EXPERIENCED EMPLOYEES