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The cost structure of zumba is found to be quite

  • IoBM
  • BUSINESS MAN23
  • rameezrameez_amin
  • 8
  • 91% (11) 10 out of 11 people found this document helpful

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The cost structure of Zumba is found to be quite complicated and it should be noted that distribution and consumer awareness are quite complicated. Apart from this, after their expansion to the US Hispanic market, they were not able to tap the full potential of the business and that the money was getting quite tight.PAGE 2
Environmental Analysis – Internal and External FactorsThe customers of the Fitness Industry had shown an interest to some ofthe notable exceptions like Yoga and Pilates while Aerobic has experienced a significant decline in the participation. The companies within this particular have utilized numerous approaches to enter and compete within the industry. It should be noted that since there are already diverse forms of exercise which can be individually done or even in groups, the companies can target participants and groups as one of their significantly primary customers.One of the most significant factors that affected the external factors of the industry incorporated the approaches that were being utilized within the industry by various firms. Jazzercise created the program and hence, the demand for the classes of fitness and dance classes attained a lot of success. It would normally pay a franchise fee of $500 along with the royalty fee of around 30 percent of the gross revenues. However, the company redesigned its cost structure and decreased some of the royalty fee by 20 percent to be paid monthly.Another model adopted in this industry incorporated Instructor TrainingModel. Pilates became quite popular in the fitness industry. This model gave rise to the studio where classical Pilates was instructed particularly. Apart from this, Pilates Institute of America and Balanced PAGE 3
Body Pilates obtain their revenue from individual instructor certificationand training. Therefore, it adopted the unit sales revenue model.

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Term
Spring
Professor
Stan
Tags
Revenue, Profit margin, Aerobic exercise, Zumba Fitness

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