Unbundling Business Model: Strategy for Planet Fitness

Topic: Business Strategy Words: 543 Pages: 2

Table of Contents

Introduction
Osterwalder Business Canvas
Analysis
New Business Model for Planet Fitness
Conclusion
References

Introduction

Planet Fitness is an organization that offers customers facilities to train and exercise. The company was founded in 1992 and is headquartered in Newington, New Hampshire (McMillen, n.d.). The firm has employed at least 1700 employees in its different locations (McMillen, n.d.). The main business strategy for Planet Fitness is to offer high-quality services at a low price. This is to ensure that it attracts more customers as it faces significant competition from other fitness firms and applications.

Osterwalder Business Canvas

Value Proposition	Planet Fitness aims to provide people with a high-quality experience in an environment that is judgment free. Large stores that have more space for equipment hence no need to impose time limits on machines. Planet Fitness provides excellent services at affordable rates.
Key activities	Online fitness programs Workout facilities Workout equipment Fitness guidance
Key resources	Spaces owned and rented by the organization. Equipment for training. Materials used to package its product. Brand reputation. Uniqueness, which creates goodwill. Patents and copyrights.
Key partners	Independent franchisees Health Companies Insurance schemes Medical aid companies Content creators
Cost structure	Franchising costs Employees Salary Equipment provision Branding costs
Customer relationships	Long-term customer relationships. The organization intends to develop relations that ensure clients come back to training at its facilities.
Customer segments	Regular people who want to get in shape form the biggest customer segment. These are people aged 24 years and above. The segment can also be described as occasional or first-time goers.
Channels	Mobile application. Website Onsite training
Revenue streams	Subscription membership Enrollment fees Annual fees Retail sales

Analysis

Planet Fitness provides high-quality services that are targeted at first-time gym users or occasional clients. The company does not target fitness enthusiasts as its main strategy is to capture people who are not regular gym users. The organization charges a standard monthly fee of $10, which is significantly lower than its competitors. This ensures that most of the clients return, which enhances its revenue streams. The company also has a mobile application that disseminates fitness information to users. The application is helpful as users can access it at home or in any location. The firm does not own all its locations and in some cases uses the franchising method, which is less costly (Formichelli, 2017). The independent owners are tasked with ensuring that the facilities are well organized according to the organization’s requirements.

New Business Model for Planet Fitness

The Planet Fitness mobile application was created to provide fitness programs for different people. The product can be unbundled to create an ecosystem where the fitness expert does not define the experiences. The new application can include a social place where clients provide their insights on the programs and comment on their progress. Increasing engagements with clients can help change the way people view mobile fitness applications (Falardeau et al., 2021). The current model ensures that the instructor or fitness expert dominates the exercise, which is not engaging. Introducing a product where clients can engage and comment on several fitness issues will be a game changer. The usage of fitness applications has increased since the Covid-19 pandemic (Falardeau, 2022).

Conclusion

An analysis of competitors of Planet Fitness shows that no organization has created an application that includes a social aspect. This indicates that Planet Fitness can create value and attract more clients by creating a mobile platform that includes a social network.

References

Falardeau, E. (2022). Rethink: The future of fitness. Web.

Falardeau, E., Glynn, J., & Ostromecka, O. (2021). Sweating for the fitness consumer. McKinsey & Company. Web.

Formichelli, L. (2017). Planet Fitness’s explosive growth is a good thing for competing gyms. Forbes. Web.

McMillen, J. (n.d.). Planet Fitness | PLNT stock price, company overview & news. Forbes. Web.