In our case, the amount of machines that need to be repaired can only be done by a technician trained to fix fitness equipment. We now have few choices left, but to work with the suppliers who have the ability to fix the specialized equipment in our fitness center, thus giving them an ability of charging a premium for services rendered. .
Substitute Products or Services.
With everyday advances in the fitness industry, the amount of new technologies available to a consumer is overwhelming. Our threat now becomes high due to, "many alternatives to a product or service" (Baltzan, 2012). If we refer to the case study information, we see that the fitness center has no website, and relies on mainly current client reviews to gain market share. This outdated problem can adversely affect the fitness centers ability to inform new clientele about what resources it offers. It is all too easy for a potential client to move on to the next alternative to our company, who has the resources we lack to reach a broad consumer base. This force could be widely considered to have the greatest negative impact on the fitness center overall.
Threat of New Entrants.
In our model the impact that new entrants will have, is little to none in my opinion. I believe this to be the case, because the entrance of our competition comes from an already nationally established franchise. The entry barriers facing any new company have already been removed by both our fitness center, and the national franchise potentially moving into our market share. We both offer the same basic products and services that are universal among the fitness industry, and likely to be found in just about any center across the country. Therefore, our model must reflect a neutral impact when referring to New Entrants force.
Rivalry Among Existing Competitors.
Building on what we have already discussed in the previous force, our fitness center is soon to be in a fierce competition with an already established national rival.