The headquarters of General Nutrition Centers, Inc. is located in Pittsburg, Pennsylvania. GNC is also “one of the world’s largest specialty retailers of nutritional products, including vitamin, mineral, herbal and other supplements” (Hurley, 2016, P. 25). In addition, GNC largest competitor is Vitamin Shoppe. According to IBISWorld, Vitamin Shoppe has a market share of 5.2%, while GNC has a market share of 7.3%. Therefore, GNC’s size is larger than Vitamin Shoppe within the market. This shows GNC has a great deal of growth. Additionally, GNC has "generated $2.6 billion in total revenue in 2014" (Hurley, 2014, P.25). Similarly, Vitamin Shoppe has "generated total sales of $1.2 billion in 2014" (Hurley, 2014, P.26). This …show more content…
According to figure 3, GNC has a higher cash investment and franchising fee than Vitamin Shoppe. However, GNC has a lower advertising fee. This demonstrates that GNC and Vitamin Shoppe's financial requirement nearly balances in the total investment. GNC has a higher cash investment because "most franchisors [want to] make sure potential buyers have enough cash on hand to cover the first year of operation because it may take a while for the business to become establish" (Stricker, 2015, P. 75). Therefore, GNC is the best health and nutrition franchise compared to its competitor, Vitamin Shoppe. As a result, I could successfully operate GNC without experience, since GNC has "high margin and low overhead costs" and the total investment of GNC is lower than the total investment of Vitamin Shoppe (GNC Franchise Opportunity, …show more content…
Moreover, one of the Gymboree Play and Music's competitors is The Little Gym. In 1976, The Little Gym was founded in Scottsdale, Arizona. The Little Gym has a market share of 16.6% and Gymboree Play and Music has a market share of 5.8%. However, “Over the past five years [2009-2014], revenue from The Little Gym’s US franchise operations is estimated to decline at an average annual rate of 1. 7% to $57.7 million" (Lerman, 2014, P.23). Gymboree Play and Music's revenue “has increased significantly over the past five years, rising an average of 16.5% per year to $20.2 million in fiscal 2015" (Lerman, 2014, P.25). Therefore, Gymboree Play and Music has an opportunity for growth in the market and has less financial risk than The Little Gym, since The Little Gym closed " 22 US franchise locations" (Lerman, 2014, P.23). As a result, I could successfully operate Gymboree Play and Music without experience, since Gymboree Play and Music produces more revenue and is likely to increase its market share in the upcoming