Page 11 - CIMA MCS Workbook August 2018 - Day 1 Suggested Solutions
P. 11
SUGGESTED SOLUTIONS
Opportunities Threats
• Develop app-based technology, similar to • Increased competitive pressure from
Fit4Life to provide tailored personal rivals – especially FiT4Life and Gym4ALL
fitness advice • Gym membership is discretionary (non-
• Use VR and VOD to improve member essential) spending, so overall demand
retention may be heavily influenced by the state of
• Collaboration to create connectivity the economy.
between fitness equipment, devices, • Failure of IT systems - membership
wearable technology and healthcare enrolment, account management,
apps payment processing, gym access and
• Harness data from such collaborations/ customer communications are all
connected gym equipment to help dependant on the successful operation
understand customers’ preferences, of information systems
adapt classes and facilities etc. • Breach of data security - unauthorised
• Work with the Celtland government to access or loss of information could lead
encourage under-represented groups to to legal claims, disruption to operations
exercise more and reputational damage.
• Organic growth in Celtland – increase • The loss of key staff, both at gym level
number of gyms each year and managerial level could lead to a lack
• Merger with/acquisition of budget gym of experienced and motivated staff
competitors which would impact on the customer
• Expand outside Celtland experience and on other central business
• Further use of a celebrity to promote functions.
brand (Sir Chris Hoy is an ‘ambassador’ • Failure to provide customers with a high
for PureGym in the UK) quality, affordable and accessible service
• Offer corporate membership to would result in a decrease in customer
businesses numbers and revenue and would also
• Open boutique gyms (under a different damage GymFiT’s reputation.
brand?) • Health and safety - serious injury to a
• Ladies only facilities? member whilst no staff present results in
• Link with sportswear company to litigation/loss of reputation
promote product through GymFiT • GymFiT outsources a number of our non-
website/premises core business processes, such as
• Improve operating efficiency through security, maintenance and cleaning.
economies of scale, use of data and Failure to meet the high standards
technology and managing its cost base expected of these outsourced operators
• Pursue innovative low cost ways to would impact on the customer
experience and potentially their overall
differentiate from competitors
safety in the gyms. This could result in a
reduction in customer numbers and a
loss of revenue.
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