ASSESSMENT 2: Application of Business Concepts to Case Study

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Introduction 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 territories. Member fees and offers of each club are customized by owners under a guide from headquarter. It embraces a ‘Corporate Wellness’ section as part of business model to attract employees of companies as group customers. A theme social networking website is also provided to members to communicate about their health and workouts. As to its franchise model, an initial joining fee and a monthly flat fee are required and a variety of technical and decision-making supports are available for franchisees (Anytime Fitness 2014). Unlike Anytime Fitness, Jetts is an Australian born business, which is relatively small and has a flexible business model. However, it is the fastest growing franchise chain in fitness industry (Heathcote 2013). One of its biggest selling points is the ‘No lock-in contracts’ offering to members, who can cancel their memberships anytime they want. The franchise information is not fully disclosed on its official website (Jetts 2014). According to managing director Adrian McFedries, an initial investment of $500,000 to $600,000 is ... ... middle of paper ... ...ngth to compete with Jetts. Secondly, benefitted from Anytime’s well developed business model as well as the franchise model, the information and conditions are thoroughly displayed on the website (Anytime Fitness 2014). This will give investors a feeling of reliable and supportive about the headquarter, and hence it enhances franchisees’ confidence on their investment. Last but not least, although the free membership cancellation seems like strength for Jetts, it may involve potential risk of losing members in later stage. As a result, it is still questionable that whether this offer is strength for Jetts. Conclusion Therefore, through analysis with Porter’s Generic Strategies Model and SWOP Framework, in spite of a few great characteristics of Jetts, it is believed that Anytime Fitness has relatively better business model since it has more strength than Jetts.

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