Assignment Sample on BSS050-6 Strategic Management

Introduction

Background

Study Active has been operating as the leading providers of gym instructor and personal training qualifications in the UK. The company is also renowned as an active IQ centre. Study Active has been operating in the UK market with less than 25 employees. The organisation was able to obtain around 5 million dollars in revenue during the previous year (Zoom Info, 2021).

Problem statement

The problem statement for this research includes the detailed description of the industrial competitiveness in which Study Active has been operating. From this viewpoint, the primary problem statement reflects finding a better solution for Study Active as compared with their existing market rivals. In this regard, a descriptive analysis will be conducted regarding the organisational competitors with SWOT analysis and other respective tools.

Strategies

Study Active has been recognised as the leading provider of certified CIMSPA and REPs accredited personal trainer courses and fitness qualifications across the UK (Study Active, 2021). In this regard, the company has been providing online learning courses for their potential consumers interested to complete fitness qualifications. The consequences of online and blended digital learning are also added with a fair value by the organisation with interest free course financing options.

Main body

Business environment analysis

The UK fitness industry has been experiencing distinctive growth with increasing customer attraction. During 2020, overall revenue of the industry stood at USD 6.17 billion with 3419 number of fitness facilities across the country. Total annual turnover of the existing fitness facilities in the UK accounted for GBP 2 billion in the previous year (Gough, 2021).

The current market trend also defined the consideration of generic fitness training outside of a class environment. In this concern, the usage of health tracking applications, yoga and fitness training apps and others are highly preferred across the industry. In accordance with a survey conducted in the UK, it was noticed that 4% of the respondents were utilising health tracking apps and training apps during the previous year (Gough, 2021). The inclusion of an online blended learning approach can be also noticed that has been acting as the key drivers in the market. It also defines the future trends of depending on online fitness training. Apart from that, the UK fitness industry has also experienced a steady growth in the number of personal trainers across the country since 2011. In this case, the personal training industry market size in the UK was expected to be worth over GBP 626 million during 2021 (Gough, 2021).

However, porter’s five forces analysis has been conducted below in order to disclose the industrial competitiveness-

Porter five-force analysis

Factors Impact Description
Bargaining power of buyers High The customers from the UK fitness industry usually obtained high bargaining power due to having several options for choosing their preferred products and services
Bargaining power of suppliers Low A range of different suppliers is associated with the UK fitness industry. In this context, suppliers bargaining power has been low as the service providers might choose for different suppliers for their satisfaction
Industry rivalry High Increasing number of competitors in the industry has increased competition. These competitors might include PT academy, train fitness, HFE and others.
Threat of new entrants Medium The consideration of new business in the UK fitness industry might require subsequent tangible and intangible resources that might be easily available. Due to this reason, the threat of new entrants has been medium.
Threat of substitute High With the existence of a range of market rivals across the UK fitness sector, the increasing threat of substitute products can be recognised.

Table 1: Porter’s five-force analysis

Resources and capabilities

Study Active has been operating in the UK market as a leading service provider of personal trainer courses and gym instruction courses. In order to define the resources and capabilities of the farm, the resource-based view theory has been undertaken.

Resource based view

According to the theoretical understanding, the performance of an organisation is usually determined by the resources it has at its disposal. However, the utilisation and configuration of these resources can enable the organisation to efficiently perform and achieve distinct competitive benefits (Collins, 2021). The theory has segmented organisational resources with two different types including tangible and intangible assets.

In the case of Study Active, the tangible assets include innovative online training courses, financial resources, gym equipment and others. It might also include technological advancement which is considered as a significant resource to continue online learning attributes for potential customers. Apparently, the intangible assets of the company include extensive brand reputation, intellectual property rights concerning the prohibition of online courses for personal training and gym instructor (Alexy et al. 2018).

Capabilities

The organisational capability can be recognised with their reputation as the leading service providers for gym instructor and personal training qualifications in the UK. Different innovative training courses can be noticed in this regard including CIMSPA level 3 diploma in gym instructing and personal training, active IQ level 3 award in nutrition for exercise and health and others. Moreover, the organisational tech stack includes Google font API, cloudflare cdn, Swell, Microsoft office 365 and others (Study Active, 2021). With the aforementioned capabilities, Study Active might be able to empower their market position in near future. However, the inclusion of innovative tech stack might also be supportive for enlarging the organisational brand image in terms of emerging as the topmost service provider of gym instructor and personal training qualifications online. 0% financing option can also be depicted from the organisational perspective in order to aspire personal trainers (Study Active, 2021). In this regard, long term plans are also offered by the organisation as an integral part of their zero percent finance scheme with prolific engagement of their finance partner, Newpay.

The organisational capabilities also developed for the provision of guaranteed interview for the personal fitness trainers. After the completion of certification for personal trainer qualifications, individuals will be eligible to attend interviews at the national gyms or other relational fitness training centres. Study Active has been also providing 20 free CPD courses under the lights of the skills hub. These courses contain free CPD models regarding health and fitness, wellness, and others for entire students (Study Active, 2021). These capabilities and attributes are enlarging the organisational accountability in the area of providing attractive fitness training and qualifications.

The mentioned attributes define an extended organisational capability for ensuring distinct provision of online and free courses regarding gym instructor and personal fitness training qualifications (Study Active, 2021). Based on this aspect, the company can empower their brand image and financial stability by attracting increasing customers across the UK. In this case, the organisational success can be measured by notifying developed market position and improved market share of Study Active (Camilleri, 2018).

In order to analyse the distinctness of Study Active, a complete internal environment analysis of Study Active has been conducted below with SWOT analysis with their competitors. These competitors include PT academy, Train Fitness, HFE and others. It might also disclose the organisational unique selling proposition as compared with other existing market rivals.

SWOT analysis

Factors Study Active PT academy Train fitness HFE
Strength ●      Distinct brand recognition

●      Leading provider of certified personal trainer courses

●      One of the leading fitness and personal training course provider

●      Guaranteed low payments with 0% interest and job interviews after the completion of course (PT Academy, 2021)

●      Personal training courses created through micro learning (Fitness, 2021)

●      Innovative personal training courses and fitness programs

●      Most popular and respected provider of fitness courses and qualifications in the UK

●      Utilisation of blended learning style for potential students (HFE, 2021)

Weakness ●      Small in size

●      Limited service portfolio

●      Limited service portfolio

●      Comparatively less revenue generation

●      Limited existence in the market

●      Smaller in size

●      Limited financial stability

●      Limited existence in the market

Opportunities ●      Business expansion

●      Increasing financial stability

●      Increasing accountability due to the establishment of high standards through innovative learning methods and competitive prices

●      Increasing customer loyalty through offline and online learning attributes

●      Increasing consumer base with the recognition of largest provider of online training courses

●      Business expansion

●      Empowerment of brand recognition

●      Enhancement of consumer base and loyalty

Threats ●      Threat of competition

●      Threat of data theft

●      Threat of market rivals

●      Threat for business expansion due to the existence of similar service providers

●      Threat of increasing competition

●      Threat of Cyber theft

●      Threat of competition in the market

●      State of inadequate financial resources for supporting wide offerings

Table 2: SWOT analysis of Study Active and its competitors

Based on the internal environment analysis of Study Active, it has been identified that the company has been able to obtain distinctive brand recognition and awareness in the UK fitness sector with the tagline of leading providers of gym instructor and personal training qualifications (Study Active, 2021). Moreover, the inclusion of innovative online training courses has also enlarged the organisational accountability and credibility across the industry. In this case, Study Active can be predicted to operate in the market with advanced technologies for providing online training courses. It can also be supported by notifying the organisational tech stack as mentioned before.

The prime weakness of the organisation reflects its limited operations in the UK market with limited existence of physical stores and venues. Zang and Xin (2021) stated that a limited service portfolio might also create a potential obstacle in terms of generating high profitability and revenue in the current operational market. On the other hand, the organisation has been operating in the industry with a limited and service portfolio where the potential organisational offerings are bound with only online training courses for personal fitness and gym instructor. In this case, some of the competitors of Study Active are preferring both offline and online operations with similar service portfolios along with heading other relational options. From this standpoint, Study Active has been falling behind their competitors.

Distinctive opportunities can be analysed on behalf of the organisation in the near future. The topmost concern in this aspect reflects the possibilities of considering successful business expansion in other cities across the UK. In this regard, the company might also look forward to empowering their store presence in the country. Wetzel and Hofmann (2020) stated that extension of service portfolio could be supportive to an organisational financial feasibility. The overall attributes can provide a positive impact to enlarge the organisational value proposition with increasing profitability and financial stability. This factor might also encourage the organisation to successfully grab foreign country markets such as Germany, France and others. It might also benefit the organisation with increasing customer loyalty and satisfaction with the development of improved customer service through both online and offline premises (Moon and Armstrong, 2020)

Increasing competition across the UK fitness industry has been emerging as a potential threat for the organisation. As mentioned in the internal environment analysis, the organisational competitors are also operating with a similar service portfolio which has been enlarging industrial competition. Moreover, Study Active provides online courses for personal fitness training and gym instructor. In this concern, the company might experience the threats of data theft, data misuse and others in case of having inadequate data security support (Venkatesh et al. 2021).

Competitor analysis

The internal environment analysis defines a prolific overview of the organisational competitors. In this context, PT academy and other competitors are also noticed to operate in online platforms regarding the prohibition of similar services as offered by Study Active. Some of the competitors are also providing both offline and online training facilities such as PT academy. The attributes of 0% interest and guaranteed job interviews are also preferred by the market competitors as an integral part of maintaining their service efficiency in the industry (PT Academy, 2021).

Distinctiveness of Study Active based on the identification of competitive advantage

The strategic attributes of Study Active define greater preference of online blended learning style as an integral part of training potential students and individuals requiring personal fitness training and gym instructor qualifications. In this concern, the company has already undertaken an advanced move with online training courses which might also benefit them in terms of continuing their services in the present changing dynamic business environment (Study Active, 2021). Moreover, the inclusion of innovative tech stack also proves the organisational efficiency of maintaining technological advancement in the provision of online fitness training courses. In this concern, the consideration of 0% financing options and others are also enlarging the organisational value proposition in the form of providing flexible services to potential customers (Centobelli et al. 2020).

In order to empower distinctiveness of competitive advantage for the organisation, Study Active should pay attention to extend their in-store presence across the country based on which both offline and online operations could be maintained by them. Moreover, Study Active can also consider the option of conceptualizing free campusing for their potential learners and students as an integral part of providing them with adequate opportunities for placement in different gym and fitness centres.

Conclusion

The overall report has presented a distinct understanding regarding the industrial operational attributes from the UK fitness sector along with the strategic aspects of Study Active. The organisational strategy of providing online training courses has achieved distinct accountability in front of potential UK consumers. However, the fitness industry in the UK is also noticed to prepare current market trends including the consequences of yoga and fitness apps, which also supports the consideration of online learning approaches. Increasing competition is also reflected from the industrial perspective with the inclusion of different similar service providers.

The internal environment analysis of Study Active and their potential competitors also define the value proposition of Study Active. In this case, the attributes of 0% financing options and free CPD courses are adding a fair value to enlarge the organisational effectiveness as compared with the existing rivals of the market. In this concern, the organisational distinctiveness can also be certified with increasing brand reputation as the leading service provider for gym instructor and personal fitness trainer qualifications. However, the company is recommended to consider extension of their service portfolio with the combination of both offline and online operations. Based on this factor, extended competitive advantage might be ensured by Study Active along with the opportunities of market expansion in near future.

References

Alexy, O., West, J., Klapper, H. and Reitzig, M., 2018. Surrendering control to gain advantage: Reconciling openness and the resource‐based view of the firm. Strategic Management Journal, 39(6), pp.1704-1727.

Collins, C.J., 2021. Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), pp.331-358.

Dubey, R., Gunasekaran, A., Childe, S.J., Blome, C. and Papadopoulos, T., 2019. Big data and predictive analytics and manufacturing performance: integrating institutional theory, resource‐based view and big data culture. British Journal of Management, 30(2), pp.341-361.

Fitness, 2021. Train for an extraordinary career in fitness. [Online]. Available at: <https://train.fitness/> [Accessed 14 August 2021]

Gough, C., 2021. Fitness industry in the United Kingdom (UK) – statistics & facts. [Online]. Available at: <https://www.statista.com/topics/3411/fitness-industry-in-the-united-kingdom-uk/#:~:text=Employment%20in%20the%20fitness%20industry&text=Furthermore%2C%20the%20number%20of%20personal,million%20British%20pounds%20in%202021.> [Accessed 14 August 2021]

HFE, 2021. An Exceptional Experience. [Online]. Available at: <https://www.hfe.co.uk/> [Accessed 14 August 2021]

PT Academy, 2021. BECOME A PERSONAL TRAINER IN 3 SIMPLE STEPS. [Online]. Available at: <https://ptacademy.com/> [Accessed 14 August 2021]

Study Active, 2021. Personal Training Courses & Fitness Qualifications. [Online]. Available at: <https://studyactive.co.uk/> [Accessed 14 August 2021]

Wetzel, P. and Hofmann, E., 2020. Service portfolio extensions and sales incentives: an examination of financial value-added services provided by logistics service providers. International Journal of Supply Chain and Operations Resilience, 4(1), pp.21-36.

Zang, C. and Xin, M., 2021, May. A Neural Network-based Research Performance Service Portfolio Evaluation Model and Its Implementation. In 2021 International Conference on Service Science (ICSS) (pp. 90-95). IEEE.

Zoom Info, 2021. Description. [Online]. Available at: <https://www.zoominfo.com/c/study-active-limited/392499465> [Accessed 14 August 2021]

Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Centobelli, P., Cerchione, R. and Ertz, M., 2020. Managing supply chain resilience to pursue business and environmental strategies. Business Strategy and the Environment29(3), pp.1215-1246.

Moon, Y. and Armstrong, D.J., 2020. Service quality factors affecting customer attitudes in online-to-offline commerce. Information Systems and e-Business Management18(1), pp.1-34.

Venkatesh, S.V., Prasannakumaran, D., Bosco, J.J., Kumaar, R.P. and Vijayaraghavan, V., 2021, June. A Non-intrusive Machine Learning Solution for Malware Detection and Data Theft Classification in Smartphones. In International Conference on Computational Science (pp. 200-213). Springer, Cham.

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