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Fitness Industry - Assignment Example

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This paper wiil analyze the strong and growing trend towards the importance of attaining quality of life has spawned the global fitness and health industry. Fitness and exercise are components of a high quality of life. Exercise stimulates both physical and mental wellbeing according to the World Health Organization…
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Fitness Industry
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Fitness Industry

Approximately 78% out of the total population of 4.6 million belong to the 15-64 years old age bracket which represents the target market of the fitness club of Global PLC Ventures. Another 20% of the total population is below 15 years old. These two population segments comprise the future consumers of the new fitness centres in Dubai.
The extremely robust private sector growth has created the need for new workers. Dubai had received US $32 trillion dollars in foreign direct investment that had funded the construction of new office buildings, residential towers and condominium residences in 2007 and 2008. These new businesses require many new workers. The labour force has increased to 4% per annum as new companies and enterprises open next year. Expatriate workers have been hired to work in new companies. Dubai has a very young and growing population: 47% of its population are below 15 years old. This fast-growing young population and the business executives are the target market of the Fitness business of Global PLC Ventures for its health and fitness business.
Dubai has an open policy towards foreign businesses. It allows 100% foreign ownership and offers tax breaks to foreign companies. The most interesting development of Dubai is the three man-made islands: The Palm Islands, The s The Palm Dubai and The Palms. The project is being handled by Al Nakheel Properties. This property development will establish new residential, leisure, and entertainment areas. The two man-made artificial palm tree-shaped resort islands established Dubai's position as a top tourist destination in the Middle East. The Palm Islands is now...
This paper approves that nutrition, exercise and a healthy lifestyle are becoming achievable goals with the establishment of fitness clubs in various parts of the world. Most of the fitness clubs offer state-of-the-art exercise equipment, individualized personal fitness training, group classes and nutrition advice. Indeed, the fitness industry is an emerging sector which can capture a wide and affluent clientele in carefully chosen business sites of Global PLC Ventures. The company must choose very interesting locations such as developed economies which guarantee growth and profitability for its fitness operations.
This essay makes a cocnclusion that in terms of the bargaining power of buyers, it will be low since most of the consumers get high salaries as executives and employees of government firms and government controlled corporations. There are also many citizens who are working in multinational corporations as key executives. Public and private corporations give very high compensation and benefits packages for the citizens. Hence, the possibility of establishing fitness centres is nil for Brunei and Dubai citizens and residents as they do not have the appropriate technical training and business knowledge pertinent to management of a fitness business. In terms of the bargaining power of suppliers, it will be low because the fitness gym business is highly capital intensive due to high rental costs, high human resource costs and high maintenance costs of the equipment. A regular supplier of gym equipment cannot just easily venture into the fitness gym business; he must have a high capital. ... Read More
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