Introduction For California Fitness Centre

California Fitness is a wholly owned subsidiary of 24 Hour Fitness, Worldwide which has over 400 clubs serving more than 3 million members. The first California Fitness club was established in 1996 in the business district of Hong Kong. Currently, there are 25 clubs. “Energy is a lot like love - the more you give, the more you get back. At California Fitness, we’ve made it our mission to help you live better through fitness. And although exercise isn’t the only way to live better, having more energy, being stronger, feeling fitter and looking trimmer is a pretty good start!” The above phase is taken from the vision of the company.

The mission of the company is to help members live better through California Fitness. The company offers members the opportunity to experience the most innovative and largest number of Group exercise classes in the region as well as providing highly professional Personal Training from the largest group of Personal Trainers in the region. In addition to the state-of-the-art cardio & resistance equipment, members can enjoy sauna & steam facilities, plus free internet via the in-club. California also has clubs with a swimming pool in Hong Kong, Taiwan and Malaysia providing all club members access. Beginning in 2005, California Fitness further differentiated its business by partnering with two fitness superstars, Jackie Chan and Yao Ming, to create signature clubs in the region. There are a total of 6 California Fitness-Jackie Chan Sport in Asia and 2 California Fitness-Yao Ming Sport in mainland China. After all, California Fitness sparked the Asian fitness revolution in Asia over 10 years ago with our large scale and well equipped health club concept. Today, with 25 clubs

. The sponsorship grants memberships to selected U. Introduction to California Fitness".24hourfitness. 24 Hour Fitness has grown to become a global fitness leader. Olympic Training Centers across the country.24 Hour Fitness Centre Founded in 1983 as a one-club operation in San Leandro. The first facility renovated was Colorado Springs. spinning.. followed by Lake Placid. pumping. the largest fitness chain in Southern . N. dancing. 24 Hour Fitness has built or opened more clubs in the United States than any other privately-owned fitness club chain. founder of Family Fitness. laughing and stretching their way to better health. Malaysia.. Calif. 24 Hour Fitness team members will help our athletes prepare for the Beijing Summer Olympic Games in a state-of-the-art High-Performance Training Center at Beijing Normal University The forming of first California Fitness Country: Hong Kong Structure: Joint Venture Industry: Health and fitness club chain Background Ray Wilson. Singapore and Taiwan and as a wholly owned subsidiary of 24 Hour Fitness Worldwide "www. In 2004. 24 Hour Fitness became the first official fitness center sponsor of the United States Olympic team. Olympic hopefuls and includes upgrades to various U. In 2008.S. Over the past 25 years.throughout China. The company is widely credited with changing the industry landscape by introducing a variety of innovations. over 3 million members are running. Colo. including extended hours and month-to-month memberships..and better lives. and Chula Vista. Calif.Y. Hong Kong.S.

owned by a large Asian Financial group. Challenge Although Mr. The cash flow that came from the first unit propelled the rapid development of a second unit and so on. Wilson thought that the Asian market held potential for American-style health and fitness centers. The plan coupled Mr. Wilson's partner and Operations Executive. under the name "California Fitness. . he lacked specific knowledge of the Asian cities and countries and had no contacts with the markets for the raising of capital and the securing of local partners. the first site secured for development was in the most popular entertainment district next to the central business district in Hong Kong. At that point the partners accepted a US$ 41. generating revenues that were more than five times the most optimistic projections. Wilson’s concept. the business consisted of four very successful units. the operating capabilities of Eric Levine. Solution BrandAmerica devised a plan to launch an upscale version of the type of “pure fitness” facility that Mr. Wilson had successfully developed in Southern California in Asia. Result California Fitness became an overnight success. had completed a series of trips to Asia. three in Hong Kong and one in Singapore. Less than two and a half years after the first unit opened. Mr.California (now called 24 Hour Fitness). A joint venture was formed to develop the first fitness centers in Asia." With the real estate expertise and funding brought by the Asian partner. wher he determined there was a potential to expand the Family Fitness concept. which brought the owners a gain many times the value of their US$ 5 million investment. with a forth unit near completion. with a real estate development and management company.5 million buyout proposal.

they knew natives well. as a native brand. Firstly. comparing with the international centre. Competitors are other organizations that produce similar goods and services. In terms to the Competitor of Californian fitness centre. local centre has more flexible form that adapts to the native habit than the international one. because they are substitutes. Example1: Back in Motion Chiropractic Centre Clark Hatch Fitness Center Day Thermos . they have both advantages and disadvantages. so some local people think it is more . we can easy to find that almost all different brands fitness canters are competitors with each other.Task Environment There are four type of task environment: a) competitors b) suppliers c) customers d) distributors Competitors All organization from services to product organization will surely have one or two and even thousand of competitors. Competition of product between competitors is the most important forces that will determine the success and failure of a business. The services of Californian fitness centre can be offered in place of another. most of them are competitors.Gym & sauna These 3 fitness centres above are Malaysia native fitness centre brands.

there is no a very strongly brand effect in the world like international one. has successfully secured a top 10% ranking in the prestigious Asia’s Top 1000 Brands Survey compiled by Media Portfolio. These brands will impose a greater threat as a more competitive opponent. 1 in the Fitness Centre Category. but they still can share some consumers from the traditional fitness center. more and more office ladies (OL) give importance on their body care. As for California Fitness Centre. because the group of customers is narrow. for the second year running. we also have a strong company supporting us at the back. Example2: Jiva Yoga Studio Yoga Zone Studio To name just a few. It is obviously to see they are pointed fitness centre. California Fitness Centre is Ranked No. Turning to disadvantages. strong brand loyalty of California fitness Centre. in modern society. international brand. so this type of fitness center is more suitable to them. For example. they’d rather choose some quietly sport like yoga. for native fitness center. the most important sport item that they serve is yoga. differentiate California Fitness with others brands. and he is a super star all over the world. These strong brands have a greater access to capital compared to the local gym or fitness centre. so they cannot get the biggest consumers like Californian fitness centre. these 2 studios are Yoga health centre. . they can get what they need there. but there are few top star for Malaysia native fitness centre who can carry the company. on the other hand. As a result. These brands can be founded at many foreign countries. Jackie Chan is the image spokesman of Californian fitness centre. As well as we know. Results from large economic of scale. they cannot provide variety selections like Californian fitness centre. Example 3: Celebrity Fitness Centre Fitness First Fitness Concept As for these 3 fitness centers are non local.suitable to their tastes and choose the native centre. but comparing with some active sport. obviously. so they can focus on a particular group of people’s needs. However. California Fitness.

000 fitness centre use its product. As for California fitness centre. and Germany etc. Japan. There are a lot of Branches all over the world. Maxicam and so on. such as the UK. The field of products in this company is very broad. Public equipment in the park and so on. because they are professional and safety product. Technogym is the only one supplier is recognized by Olympic Games. not only for the Fitness centre. More than 20. Some of sports equipments that they adopt are their own product. From a common tower and t-shirt to a more complicated item like modern software for registration. Italy. Californian fitness centre wants to extend their own field on fitness. from the Sydney Olympic Game in 2000. USA. Medical and health. there are some others Partners in Supply Chain of Californian fitness centre. they have suppliers from many areas. For example. Startrac. Besides above. They are also reliable supplier. including Home fitness. Technogym is one of the most important Partners in Supply Chain of Californian fitness centre. It was founded in 1983 by Nerio Alessandri and now it is the world leader in the fitness and rehabilitation equipment fields. But in some in some industry suppliers also provide financial and labor input for other organization. Below is one of an example of supplier for California fitness centre. All of them are famous brands in the world. it is good for the development of their company. . and gym equipments. so they not only use some reliable equipment. such as Life Fitness. China. Technogym is a manufacturer of fitness equipment based in Gambettola. can offer high quality equipment to Californian fitness centre. but also develop their own brand to use in their fitness centre.Suppliers Normally suppliers are well known in the term of organizations that produce materials and products.

to provide customers with high-value products or services that are high-performance organizations pursue. Including individual consumers. Without customers. Organization: Customer is the God. some may even think it as a place for relaxing after a hard day of work. there won’t be any organization form to operate until now. Customer: production and purchase of products or services for groups and individuals. Morever. Customers Organizations and companies are existed to meet the requirement and needs of customers. The impact of the supply's ability to negotiate price bargaining factors: the concentration of the buyer (buy capacity). For example. the buyer's switching costs. educational institutions and so on. activities and equipment to cater the needs for different groups of customers. Apart from that with the increasing of customers demands. California Fitness Centre tends to provide a series of services. California Fitness Centre in Mid Valley offers . the number of the seller. to ensure the steady flow of supply.California Fitness Centre tends to have many suppliers for its product as the organization can get the lowest price for the highest quality of the product from suppliers. ? Management strategy: to provide customers with the high delivered value of the product or service. elders and even people with family. and some may even think it as a place for fun. is to organize the sources of profits and income. What comes to mind when you think of fitness centre. businesses. teenagers. the application of e-business techniques also being adopted and used by the company to deal with suppliers. some may think as a place for exercise. fitness centers can have several groups of customers such as working class. the buyer. As a result. government agencies. such as backward integration. Customers can also be defined as people who buy the goods or services and then consume or use them.

some California fitness centre offer aerobic studio. distributors limit the ability to negotiate price bargaining. private training room. ? Management strategy: the need for distributors to establish a good relationship between suppliers. size. babysitting services and others special services. Due to different geographical factors. When we sponsor in an event held by government or charity(non profit) organization. Retail Shop and others normal distributors that distribute product to distribute our services. the organization can’t use distributors like Wal-Mart. organization prior to the degree of integration. ? Affected distributors the ability to negotiate price bargaining factors: the number of distributors. tanning bed. As for California Fitness Centre which offers services instead product. geographic distribution. . Normally our distributors are of the Non-profit or charity organization and government campaign. they will help us to promote our services and distribute some of our goodies for the people. On the impact of organizations: the impact of organized marketing capabilities and product brand image.• • • • • • • • • • • • Outdoor Swimming Pool Energy Studio Fly Wheels Studio Chill Out Studio Female only Gym Area Cardio Machines Resistance Machines Free Weights Xpress Zone Kick Fit Area Steam & Sauna Outdoor Jacuzzi The above services and facilities are the most common one. Distributors Distribute can helped organize the sales organization to the consumer product or service organizations and individuals. Some California fitness centre offer more than the above to cater the different needs for customers.

Today.General Environment There is 5 type of general environment a) Technology Forces b) Demographic Forces c) Socio cultural Forces d) Political and Legal Forces e) Economic Forces Technology By now. Apart from the standard equipment used in gyms for a long time like Dum bells. These vital equipment. laughing and stretching their way to better health. dancing. the leading privately owned and operated global fitness center chain in North America with more than 3 million members are running. to stay relevant in the business the acquisition of advanced equipment that utilize complex technology becomes a Jump ropes etc. Singapore and Taiwan and as a wholly owned subsidiary of 24 Hour Fitness Worldwide ( www. facilities like steam rooms. Before we start with exercise equipment.. with 24 clubs throughout China.24hourfitness. it's obvious we're pretty serious about fitness. Malaysia. This shows our initial commitement to embracing health technology to better serve our customers and remain competitive. Bar Bell Weights. A fitness centre like the California fitness centre being in the industry that it is depends a lot on the type and quality of equipment it has. California fitness is a health club first and as a result. California Fitness sparked the Asian fitness revolution in Asia over 10 years ago with our large scale and well equipped health club concept. After all. Hong Kong. the backbone of our . This is to foster the general health and well being of the cutomers. saunas and studios.and better lives.. pumping. spinning.

weight etc. This card contains his information such as age.operations. As this directly influences the class and quality of equipment provided by your business and consequently the class of service you are able to offer to customers which in turn determines the success and/or failure. Also. 2003). the facilities to be used and in what order. hydraulic equipment. Cross trainers. This is an advance in technology enabling easier use for the consumer and convenience for the company. after consulting with the personal trainer. protective equipment such as a back brace etc (Sprague. it can also contain his training regime which includes the number of work outs per week. The accepted member is first issued a smart card. These equipment could include but are not limited to Treadmills. This means one of the most important influences of the gym business model is the need to keep up with quickly changing technology. Also it enables the customer to track his performance online as the results can be accessed from anywhere through the gym's website. Here. Statistics have shown that the success of failure of most gyms in the first six months of it's operation and then in the long term depends. the systemized registration system is a software frame work developed specifically for use in fitness centres such as ours. Exercise bikes. Rowing Machines. This means that technology is one of the main forces influencing the environment of California fitness centre. As a result of this. Treadclimbers.2007). the length of his usage etc. Another aspect of the use of technology not yet mentioned is the smart registration. in the long run of your organization. on a large part on the quality of the equipment (Shields. the advance of technology means the invention and application of new inventions for usage in gyms and fitness centres all over the world. height. are ensured to be of the highest quality and the latest technology to keep abreast of the world. . It involves the issuance of smart cards which are the membership cards that show and track a customer's movements and activity within the facility.

Family. Demographic Trying to determine how much demographics influences the business of California fitness centre. Therefore. Apart from all those benefits. This leads to a push in advertising to women in such countries. The usablilty of the system also attracts many cutomers hwo are swayed by it's sheer convenience and ease of use. it enables the customer to find out the state of his payments. 2008). first you have to look at the various aspects of demographics. This enables him to find out whether and how effective his exercise is while silmultaneously giving a general picture of his health. . The second aspect of Demographic involves sex.Old. a country which has a significantly larger population of women and a lower number of males aged in their mid twenties would see a lower number of gym goers than usual. Depending on the age demographic pursued. This also means that the payment structure is flexible as a customer can now pay only for the particular services he uses since his membership card tracks the facilities used and the duration. the customer base will be skewered towards one group or another. Teens. Middles aged. The first aspect involves age.Another important aspect of this system is the ability of the customer to ascertain how much calories he is burning. In this way. As the majority of most gym goers in most countries' are male. the sex influences the fitness centre. the customers of the California fitness centre are not uniformly aged. financial and fitness information provided by the smart card registration system all in all makes the visiting and usage of the gym a breeze for both consumer and company. With the population divided into various age groups and each age group with it's individual nuances and preferences. The general gym population in most countries is mostly made up of men in their mid twenties (Margetts. Another advantage is the non labour intensive nature of the venture makes the running of the gym less costly in the long run reducing costs and increasing the profit margins. This synthesis of health.

With the family favoured membership contributing to the income of the establishment. This therefore significantly influences the fitness centre as the general income and standard of living of a country determines the number of customers. Here. this demographic forces the fitness centre to change their approach and try to adapt their facilities for use of this specialized demographic. As the more people with no jobs especially during times of economic hardship find that they cannot afford the expense of a gym. women . Saudi Arabia . The gym also could choose to cater to certain overlooked demographics such as the disabled. This constitutes an opportunity for California fitness centre to start a business at Malaysia. this includes the employment and hence the unemployment ratio in a country. wellness and fitness are currently the trend for most Malaysian citizens. As a result. Also. eat fast food. Certain religions such as Islam especially in countries such as Pakistan.a major demographic in other countries are not allowed to attend such establishments as gyms and as a result the fitness centre will see almost non existent business from that sex. Yemen etc that subscribe to the fundamental version of that faith. Another demographic though interwining is race and religion. This is done by providing the gym with disabled specific exercise equipment. In this way. you see the distribution of income. depending on the demographic served. many new symptoms and diseases start spread wildly results of unhealthy lifestyle of people especially the working class people who just go to work all day long. especially in the third world (Africa. more and more fitness centre. gym and health care centre are starting to pop out in Malaysia. This necessitates in these countries the establishment of separate sections for men and women to train and as a result the problems issued by that demographic is solved. attending a gym is seen as a luxury only a few of the elite in that country could afford. Social Cultural In Malaysia. As a . healthy.In a lot of countries. Nowadays. lack of doing exercise.Some parts of Asia and South America).

one of things in the earth that money can’t buy is health. It does not need to be strenuous. “Inactivity is the root cause of many health-related afflictions. more and more people are willing to go to gym for a healthy body. Guess and many more. Some Malaysian female tend to go to fitness centre more often than male as female Malaysian wish to have a slimmer body to wear those new fashion trend shirt or skirt from famous brand like Forever 18. In Malaysian also has some rare belief or practice that . Beside that California Fitness Centre also has a famous spoke person like Jakie Chan as one of their model. According to Regional Office Fraser & Neave (Singapore) Pte Ltd country marketing head Chris Ng. Moreover some religious and belief also prevent female person from exposing some of their body part to other male person when they exercise. Whenever asian people who heard of Jackie Chan name. However. To avoid such symptom people tend to go to gym or fitness centre to work out and exercise regularly. Some Malaysian whom having a family also tend to take their family go for exercise and have a healthy lifestyle so as to prevent the high rise of medical bills. many people struggle to achieve the right worklife balance. So why not include some form of exercise into your daily routine? There is no denying that regular exercise is one of the cornerstones of healthy living.” said Ng. These also help the fitness centre a lot as more people are aware of the importance of health. These positive socio cultural forces will definitely bring a good impact on California Fitness Centre. he or she will surely be impress by him for this martial art action hero. Result from famous martial art hero and actor as advertisement.result from that symptom like obesity are commonly found in Malaysia. As a result some people tend to have their exercise at the park or at their house by themselves.” he added. As a results from the many speech about important of healthy living. (taken at new straits times June 7. 2008). As the saying. the campaign exemplified the brand’s commitment to empower Malaysians to take charge of their lives. Some Malaysian especially the elders will be stubborn to go to fitness or gym to exercise as they prefer exercise in the surrounding of nature. This implies that health is more important than money in our pocket. just be consistent. government’s advices and campaigns results in a more health cautioner’s people. some Malaysians who have old fashion of thinking about health with definitely bring a negative impact to fitness centre industry. and we want to enhance their overall sense of well-being by saying there’s always time for exercise. “In today’s fast-paced world.

Facilities like Female only Gym Area also provided by the fitness centre to overcome such problem. When facing such problem some fitness centre like California Fitness centre tend to add some special facilities for those special people. Thus more and more business is established. Economic Forces Economic context impacts on the purchasing power of our customers. only like this then can give the consumer a good fitness place. Since our service is part of the leisure expense. Because each kind of service cannot leave legal and the political restraint approximately. Malaysia economic is in upswing state and the increase of the purchase power of the citizen and then aid in our business of a fitness centre. can increase in the healthy aspect's investment. like this better will impel .Such act of the government will aid us in the increase of profit in our business which emphasised on health caution. the Head of Health Department advises people to exercise frequently and has a balanced diet and healthy life style to prevent obesity.emphasize on having a bigger and fatty body as they believe that fat and big body will bring wealthy for them. Political and Legal Our service does not directly depend on juridical or political changes. The government also provides to people the health important attribute. it may be affected by a decrease of their purchasing power. But now. Malaysia has put in place legislations affecting business environment. they will penetrate more funds in the healthy aspect.However.Because the economic expansion citizen's income enhancement. however the fitness center is one about the health Service company. sees regards as is an important factor. the government also recommends to the people do some sports is good for our health. speaking of the citizen. should award legal and the political restraint. some decisions made by the Department of Health office could impact on our activity. Business legislation provides protection for company. This practice also commonly found among the Chinese citizens. employers. Recently. employees as well as consumer from unfair business practices and conducts.

Wikipedia.our health center the economic development. Malaysia had experienced a decline growth in Gross Domestic Product (GDP) and inflation rate accelerated to 2.californiafitness.Fitness Equipment | Gym Equipment | Exercise Equipment Alexander Margetts Trainee Clinical PsychologistOxford University http://www.8% m_Centres/?PostID=92025 http://www. due to global economic downturn and slump in information technology sector (IT). Such financial circumstance will reduce the citizen to the health investment. Bill Reynolds: Books Fitness Superstore . thus may engage in more activities to attract the customer In the year 2001 and http://en. purchases equipment's expense enhancement. we will purchase equipment's price also to reduce.wikipedia. But The Gold's Gym Book of Bodybuilding (Gold's Gym Series): Ken Sprague. the free encyclopedia .health. like this will reduce the citizen to the health center purchasing power. will thus also meet the cinema that our health center down turn. Malaysia economic is in upswing state and the increase of the purchase power of the citizen and then aid in our business of a fitness http://my. moreover the entire market's price will enhance. References • • • • • • • • Exercise equipment . moreover economic expansion. the citizen will reduce the year-on-year.88db. way above our initial estimate and market consensus of 1.

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