Hinewai has looked at the Hamilton gym market, identified activities that made her Tauranga operation succeed, and worked out some options to create her own space as a community-focused gym in Hamilton. Hinewai feels ready to decide on her strategy and put her plans into action.
First, Hinewai looks at the other gyms in Hamilton. There are three major gyms, each offering similar training programmes but with different membership rates based on their location. Hinewai sees that she can’t compete directly with them based on price.
Hinewai’s business partner Sam is from Hamilton and has worked with two of the major gyms before. Hinewai identifies that Sam’s a key resource who understands the community better than anyone, and has the networks to recruit the right trainers for her gym. Hinewai also notes the other key resources and activities she needs to make her business unique.
Hinewai is keen to explore some options to stand out from competition. To make her gym space welcoming for everyone, especially for elderly people, she identifies some key points of difference her Hamilton gym will need. For example, Hinewai will need specialist trainers who can provide yoga, Pilates, and other balance and physical therapy programmes. Hinewai will need her facilities to suit people with restricted mobility too. Hinewai spots an opportunity to tailor the fit-out and decoration to suit that segment of the market. Hinewai hasn’t yet fitted out the space, so senior-friendly layout and furnishing choices won’t add much cost for her. Competitors would have to tear out some of their current setup to make changes.
Hinewai writes her strategy statement.
Her strategic objective: Double the number of fitness programmes offered in her gym and turn the Hamilton operation profitable by the end of the financial year.
Her scope: Provide specialised training programmes for elderly customers in Hamilton. Hinewai will update facilities to suit this audience, hire new staff, and do some targeted marketing. Hinewai won’t remove any current programmes or equipment. Hinewai will stop offering loyalty discounts for current members, which doesn’t align with this strategy.
Her advantage: Hinewai will use her business experience from Tauranga and Sam’s local insights and networks to help build the team required for a high-quality experience customised for older customers. They have unique skills and experience competitors can’t match. The gym’s layout, decorations and furnishing will be tailored to these older customers. Hinewai has an advantage over competitors here because Hinewai has already budgeted for work on the facilities, and tailoring that work won’t change the cost much. Hinewai will have the right programmes, people, and facilities for this target market. Other gyms would need significant investment and a complete change of culture and focus to attract similar customers.