World Gym began operations in 1995 in a large city. The company’s objective was to meet the fitness needs of a diverse clientele, from the professional body builder to the overweight person, World Gym’s principal plan was to have a fitness facility that targeted the common person – a fitness facility that was not on the high end or the low end, but in the middle price range. At the beginning, it planned to challenge the price of the top-of-the-line facilities. It offered its services in a big spacious centre in a high-traffic area, a part of the city that was becoming gentrified. There was little competition in the area. The establishment’s large space, with natural light coming in, set it apart from competitors. The company expected its members to come join other clubs and facilities not only in the immediate neighborhoods. But all around the city, it saw its trade area as the neighborhoods within an 8-10 minute drive. The company decided to begin by marketing its product to people who were already working out but wanted something unique. When the company opened its fitness facility, consumers readily accepted it. World Gym membership far exceeded expectations. It now has 3,000 members. As many as 2,000 people come on a given day. For years World Gym had few serious competitors. In the city, permits are required to open a gym and thus are an obstacle to potential competitors. And the cost of opening a 35,000-square-foot facility is an additional barrier to entry,
World Gym used the position of an early entrant in the market and focused on providing exceptional facilities at a relatively low cost. Considering the fact that the market itself was not mature enough to accept extremely high prices, World Gyms pricing strategy was exceptional. This helped it capture both the ends of the market; those who were looking for a good gym facility, and the segment which preferred the good gym facilities, yet was not ready to shell…
We Write Essays for Students
Tell us about your assignment and we will find the best writer for your paper
Get Help Now!ut a significant amount. This pricing strategy could serve as a market entry mechanism and help World Gym capture the share of the market in an area with rather lesser number of players. Over time, as the market matures and the facilities of World Gym are also extremely well accepted, the prices can be increased.
PLACE THIS ORDER OR A SIMILAR ORDER AND GET HELP FROM A CERTIFIED WRITER:)
Click the button below to order this paper AND ENJOY OUR DISCOUNT.
The post World Gym began operations in 1995 in a large city. appeared first on Nonplagiarizedpapers.
Welcome to originalessaywriters.com, our friendly and experienced essay writers are available 24/7 to complete all your assignments. We offer high-quality academic essays written from scratch to guarantee top grades to all students. All our papers are 100% plagiarism-free and come with a plagiarism report, upon request
Tell Us “Write My Essay for Me” and Relax! You will get an original essay well before your submission deadline.
