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APPLICATION OF THE VRIO FRAMEWORK

TO NORBERTS FITNESS STUDIO.



INTRODUCTION
Fitness industry in India
Fitness industry is now projected to be a whopping Rest 50,000 crore industry by 2030 which
means the competition is going to be tougher in the years to come. Weight training, Aerobics,
staying in shape is now getting more and more popular in all age groups and it is certainly
becoming one of the favorite things to pursue.
Health and fitness Industry is growing by leaps and bounds with the changing life styles.
Favorable demographics with rising disposable incomes in the hands of younger population are
the key factors that is routing ahead the fitness market in the country.

About Norberts Fitness Studio
Norbert DSouza holds a personal trainer certification and a specialist in Exercise Therapy
certification from the USA- based ISSA (International sports Sciences Association). Prior to
having obtained these updated, international certifications, Norbert did a course in Fitness
Management and Exercisetechniques at the acclaimed Lena Mogres Fitness Academy, Mumbai,
as he began his foray into the world of fitness way back in 1999.

Trends in the Industry
The growing health and fitness industry has attracted a large number of domestic entrants and
international players. A much growing trend in the industry is expanding through the franchise
route.
Significant changes in lifestyle related to lack of physical activity and increased consumption of
fast food among both affluent and working class population has led to greater need for healthy
lifestyles. More and more brands are planning to foray into Tier II and Tier III markets.


Research Methodology
Primary data: Tools used were questionnaire and personal interview with the manager Mr.
George Alvares
Secondary data: The Gym website and brouchures.

VRIO Chart

Analysis of the VRIO framework
Human resource
Certified trainers are the human resource component of Norberts fitness studio. This resource is
valuable to the organisation. However it is neither rare nor costly to imitate. The organization has
not been able to retain the staff and hence there is a competitive parity. This turns out to be a
strength for the firm.

Location
Location is a physical component of Norberts Fitness studio. This resource is valuable to the
organisation, but it is neither rare nor costly to imitate. Since it is a prime location the
organisation has been able extract more number of clients hence it gives the firm temporary
advantage. This is a strength with distintive compitence.
Resources Value Rarity Imitability
(costly to
imitate)
Organization Competitive
Advantage
Certified
Trainers
Yes No No No Parity
Location Yes No No No Temporary
Equipments Yes No No Yes Temporary
U.S.P Yes Yes Yes Yes Sustained
Brand Name Yes Yes Yes Yes Sustained
Equipments
Equipments form a part of the technological resources of the VRIO framework. Norberts fitness
studio uses the latest equipments for the benefit of its members. This resource is a valuable
resource however it is not rare and can be easliy imitated by other firms in the industry. The
technological resource gives the gym a temporory competitive advantage.

Innovation
The innovation of Norbert fitness studio is its Unique selling proposition, in terms of its results,
quality training and environment. It enjoys the sustained competetive advantage as the resource
is valuable, rare and costly to imitate. It is a sustainable distinctive compitence.

Reputation
Reputation is associated with the brand name that Norberts Fitness Studio has in the market.
The brand name is valuable, rare and costly to imitate. It has developed this brand over a period
of time with lots of hardwork, dedication and commitment. This gives sustanable distinctive
compitence.

Swot Analysis
Strengths
16 years of experience
Result oriented programs
Membership portability
Seven branches in Goa
Weakness
Staff attrition
Skilled workforce
Rigid Management
Opportunities
Expansion in south Goa
More revenue can be generated through franchisee.
Threats
Entry of known national.
Lack of interest among Goans towards fitness

Suggestions
Expand towards further Margao Mobor Side
Job turnover ratio can be reduced by increasing the pay package
By providing better package according to the budget
More advance facilities
Digital marketing can enhance customer base.


Conclusion
Nobert Fitness Studio, which is facing intense competition from other fitness studios and fighting
the internal issues of high staff turnaround, high investment on staff training and lack of interest
among Goans to work in fitness studio, can sustain its self in a market through innovative
business practices like providing various schemes and offers to customers, world class faclities to
customers and higher payout to staff members than the industry standards.

References:
Mr. GreorgeyAlvares Manager of Norberts Fitness Studio.
Norbert Fitness Studio brochures.
Website: http://www.norbertsfitnessgoa.com/