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Page 2 environmental analysis internal and external

  • IoBM
  • BUSINESS MAN23
  • rameezrameez_amin
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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 hasexperienced a significant decline in the participation. The companieswithin this particular have utilized numerous approaches to enter andcompete within the industry. It should be noted that since there arealready diverse forms of exercise which can be individually done oreven in groups, the companies can target participants and groups asone of their significantly primary customers.One of the most significant factors that affected the external factors ofthe industry incorporated the approaches that were being utilizedwithin the industry by various firms. Jazzercise created the programand hence, the demand for the classes of fitness and dance classesattained a lot of success. It would normally pay a franchise fee of $500along with the royalty fee of around 30 percent of the gross revenues.However, the company redesigned its cost structure and decreasedsome 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(Domene etal., 2015). This model gave rise to the studio where classical Pilates wasinstructed particularly. Apart from this, Pilates Institute of America andPAGE 3
Balanced Body Pilates obtain their revenue from individual instructorcertification and training. Therefore, it adopted the unit sales revenuemodel.One other popular business model was the unit sales model inaccordance with the production and sales of DVDs and exercise videos.The cost structure seemed to be quite complicated within this model.Distribution and marketing were the basis components of this modelwhich gained a lot of attention and hence, these were given too muchimportance.Infomercials was an imperative concept within this industry and wasalso adopted by Zumba Fitness(Ljubojević, Jakovljević and Popržen, 2014).But as far as Zumba Fitness is concerned, the company was not ablecover the costs of production and that is why, Zumba Fitnessdiminished the concept of royalty and gave a significant considerationto the marketing of the videos via the retail outlets.

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

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