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Essay / ASSESSMENT 2: Application of business concepts to the case...
IntroductionAnytime Fitness and Jetts Fitness are two leading 24-hour gyms with recent remarkable performance in Australia (Heathcote 2013). But it becomes clear that their business models are different in many aspects through critical analysis. This essay indicates that compared to Jetts, Anytime Fitness has a superior business model by analyzing with SWOT framework and Porter's generic strategies model. Case Study OverviewThe business models of the two fast-growing franchise gym chains vary from each other. Originating from the United States, Anytime Fitness is the largest chain of fitness clubs in the world as well as in Australia with over 260 clubs across the different states and territories. Membership fees and offerings for each club are personalized by the owners under a guide from head office. It includes a “Corporate Wellness” section as part of a business model aimed at attracting corporate employees as customers of the group. A thematic social networking site is also available to members to communicate about their health and training. As for its franchise model, an initial membership fee and a monthly fee are required and various technical and decision-making aids are available to franchisees (Anytime Fitness 2014). Unlike Anytime Fitness, Jetts is an Australian-born company that is relatively small and has a flexible business model. However, it is the fastest growing franchise chain in the fitness industry (Heathcote 2013). One of its main selling points is the “No Lock-In Contract” offer to members, who can cancel their membership at any time. Information about the franchise is not fully disclosed on its official website (Jetts 2014). An initial investment of $500,000 to $600,000 is ...... middle of paper ...... a way to compete with Jetts, according to chief executive Adrian McFedries. Second, benefiting from Anytime's well-developed business model as well as the franchise model, the information and conditions are carefully displayed on the website (Anytime Fitness 2014). This will give investors a feeling of reliability and support towards the head office, and therefore increase franchisees' confidence in their investment. Last but not least, although free membership cancellation seems to be a strong point for Jetts, it may involve a potential risk of losing members at a later stage. As a result, it is still questionable whether this offer represents a strong point for Jetts. Conclusion Therefore, through analysis with Porter's Generic Strategies Model and SWOP framework, despite some excellent features of Jetts, Anytime Fitness is believed to have relatively better business. model because he has more strength than Jetts.