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Generational Health and Fitness: Strategic Position, Marketing, and Operations

Strategic Position and Risk Assessment

The strategic position of Generational Health and Fitness (GHF) is a low-cost fitness program offering cycling classes to residents of the local community. The long-term goal of the enterprise is to create an environment where community residents could learn to love exercise, improve their health, and reduce stress. The target market is defined primarily by geographical factors, as classes will be available to all members of the local community (Bell, 2016).

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In particular, lessons will be tailored to the needs of teenagers, adults, and older adults seeking to improve their health through regular exercise. GHF is not a first mover but a fast follower, as there are other community-based fitness initiatives in the area. However, being a fast follower contributes to the strategy of GHF, as it enables to learn from the mistakes of companies that appeared earlier (Seave, 2014). For example, GHF will offer classes in groups based on age, as well as fitness levels, to attract more teenagers and young adults to participate.

To determine the risks faced by GHF, it would be useful to apply Porter’s Five Forces Model to the target market. First of all, the competition among fitness companies in the area is high due to the threat of substitute services and new entrants. As a result, the bargaining power of buyers is prominent, as people can choose another gym or class if they are not satisfied with the service or its price. The power of suppliers is not significant, as there are numerous companies that sell sports equipment. Overall, the main risk faced by GHF is competitive rivalry among health and fitness providers in the area. The company intends to address this risk by setting a low price for classes, offering monthly memberships, hiring professional staff, and providing excellent customer service.

Marketing Plan and Sales Strategy

Raising awareness about GHF in the local community will require using a variety of marketing tools. The message that advertisements should convey is that GHF is the local community’s partner in health and wellbeing. Forbes Dallas Business Council (2018) recommends building partnerships with other local businesses and organizing events to attract customers from the local community. One of the key opportunities is to partner with local coffee shops to distribute flyers with key information about GHF, classes, and events. For instance, it would be useful to organize an opening event, inviting all residents to participate in a free cycling class and buy a membership at a discounted price.

GHF could also hold regular fundraiser events that would generate funds for local charities. These events would help to attract the attention of local people and encourage them to sign up for cycling classes. Also, GHF could partner with local schools to spread information about classes among teenagers. In doing so, GHF can place informatory posters in local schools’ common areas or visit schools with lectures about health and the benefits of physical activity. Lectures would be useful in motivating teenagers to be more physically active and improving their overall health literacy.

The sales and marketing force of GHF will consist of three people. Marketing Specialist will generate content, create and fulfill marketing plans, and partner with local businesses for advertisement. Two Sales Representatives will work on a shift basis to sell memberships to customers, process payments, and offer consultations about classes and membership options. Both positions will require candidates to hold a Bachelor’s Degree and have some relevant working experience in sales and marketing. Successful applicants will receive a base salary of $50,000 plus bonuses for performance.


GHF classes will operate on the basis of Seattle Parks and Recreation Centers. The office will be located in a rented space where staff involved in marketing, sales, and finance can work on their tasks. Service requirements include staffing and equipment needed to carry out cycling classes. GHF will need five cycling instructors to lead classes, as well as 30 indoor Keiser M3 cycling bikes for adults, 30 indoor Keiser M3 cycling bikes for kids, and bike mats. In addition to cycling bikes and bike mats, the furniture, fixtures, and equipment will also include landline phones, desks, and computers required to perform daily operations.

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Apart from five cycling instructors, GHF will also employ two sales representatives, a marketing specialist, an accountant, and two front desk administrators. The supply chain will include a fitness equipment store selling Keiser M3 cycling bikes for children and adults. In choosing the supplier, GHF will look at the price range and maintenance options offered. Priority will be given to suppliers that also provide maintenance services during the warranty period. However, if such suppliers are not available, maintenance services will be arranged with technicians from a third party.

Strategic contingency planning is necessary to ensure that if the proposed enterprise is not successful, GHF will be able to minimize financial losses. Jeanty (2018) states that a strategic contingency plan should take into account costs, timing, and market conditions. The proposed contingency plan is to sell all the equipment to local businesses in case GHF faces financial losses for 3 or more consecutive months. Cycling bikes can be sold to fitness centers, whereas computers and desks can be sold online to business owners or individuals. This plan will help to reduce financial losses and prevent further devaluation of equipment by setting a clear time limit to judge the company’s performance.


Bell, E. (2016). Customer segmentation: 5 ways to divide the consumer base. Web.

Forbes Dallas Business Council. (2018). Nine ways to grow a business through local marketing. Forbes. Web.

Jeanty, J. (2018). What is strategic contingency planning? Web.

Seave, A. (2014). Fast followers not first movers are the real winners. Forbes. Web.

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