Anytime Fitness and Jetts Fitness are two leading 24-hour gyms with recent remarkable performance in Australia (Heathcote 2013). But it is apparent that their business models are different in many aspects through a critical analysis. This essay states that compared with Jetts, Anytime Fitness has a superior business model by analyzing with SWOT framework and Porter’s Generic Strategies model.
Case Study Overview
The business models of the two rapidly growing franchised gym chains vary from each other. Originated in US, Anytime Fitness is the largest health club chain in world as well as in Australia with more than 260 clubs located all over the different states and ...view middle of the document...
Critical Analysis using Business Concepts
According to Porter’s Generic Strategies Model, Cost Leadership Strategy refers to ‘An integrated set of actions designed to produce or deliver goods or services with features that are acceptable to customers at the lowest cost, relative to that of other competitors.’ (Hoskisson n.d. 2012), while according to Baker (2014), Differentiation Strategy means providing products or services which are perceived as unique by customers. Generally speaking, they both take low price as core competency by keeping their business model as simple as possible and minimizing the overhead and labour cost (Fitzsimmons 2014). This indicates that they both use Cost Leadership Strategy. However, for some customers, only low price is not attractive enough to them. Compared with Jetts, Anytime Fitness has some unique business features, such as the online tools and community for members to share their experience with Anytime Fitness, and by taking advantage of the spread power of the internet, the number of potential customers is substantially increased. Similarly, the special offer of group memberships to corporates employees is also a creative marketing strategy. In this way, Anytime Fitness not only adopts Cost Leadership Strategy but also the Differentiation Strategy. Thus this combinational strategy model is considered as superior to that of Jetts.
In terms of...