Bally Total Fitness Essay examples

2156 Words Feb 23rd, 2015 9 Pages
A Case Analysis of Bally Total
Fitness’s External Environment

Group 2: Meghan Cree, Sarah Medve, Rachel Hamrick, Jacob Rath, James Wallerstedt, Samuel Kube

Due: 01/27/15

Word Count: 2039

Case: Bally Total Fitness By 2004, Bally Total Fitness was a major leader in the $14.1 billion health club industry. With over 400 million facilities worldwide, Bally was the “largest publicly traded health club operator in the United States in 2003” (Wells, John R., 1-7). Bally’s success was fueled by many components including membership revenue, various products and programs, and their recognizable, worldwide image; however, in 2004, Bally faced a major shock to its reputation. Fraudulent accounting practices were
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On the other hand, a growing trend for smaller clubs, “who require minimal initial financial investment” (Wells, 1-2), to lease used gym and exercise equipment has been in effect. This paves the way for small studio-sized facilities to continue thriving in number.
Health Clubs have recognized a wide variety of age groups who are purchasing memberships. Commercial gyms, such as Gold’s Gym, 24 Hour Fitness, and Bally’s, target potential members aged 18-64, who require a wide variety of amenities, are comfortable in an open, coed environment, and can partake in a healthy workout without unlimited personal attention (though these clubs, often, offer a personal training option). Small, studio-sized fitness centers typically narrow their target markets down a bit further. Curves provides a safe and relaxed environment for inexperienced gym-goers and “women who were not comfortable in coed gyms” (Wells, 1-11).
The Centers for Disease Control and Prevention’s National Health and Nutrition Examination Survey estimated, by 2004, that 66 percent of adults, aged 20-74, were overweight or obese, while 17 percent of adolescents and children, aged 2-19, were overweight (Center for Disease Control and Prevention). With the increasing convenience of lifestyle amenities, especially in America, seen by the 1733.33% growth in spending on fast food from 1970 – 2000 (that is still continuing to grow) and increasing options for faster transportation resulting

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