G&F: The Funness System Rocío Aguilera Mohedas Juan Luis Ayuso de Andrés Pablo Mañogil García Nereo Rodríguez Rodríguez Jon Andoni Suárez Moreno EOI Global MBA Master Project – June 2011 G&F: The Funness System Content Content External Diagnosis ............................................................................................. 8 Definition of the Company´s Mission ............................................................... 8 Value Propositions ................................................................................................... 8 Company´s Mission Statement ................................................................................ 8 Company´s Vision Statement .................................................................................. 8 PEST- Political, Economic, Social and Technological Analysis- Analysis of the General Environment ...................................................................................... 9 Political .................................................................................................................... 9 Economic ............................................................................................................... 10 Socio-Cultural-Demographic ................................................................................. 12 Technological ........................................................................................................ 14 Effect of Other Sectors .......................................................................................... 15 External Analysis .............................................................................................. 19 Political, Economic and Legal Considerations .............................................. 19 Political Considerations ......................................................................................... 19 Economic Considerations ...................................................................................... 20 Legal Considerations ............................................................................................. 20 Market (Size, Trend) ..................................................................................... 22 Competitors ................................................................................................... 25 Distribution Channels .................................................................................... 27 Suppliers ....................................................................................................... 28 Rerev’s Elliptical Trainers ...................................................................................... 28 Team Dynamo Stationary Bikes ............................................................................ 29 Resource Fitness Spin Bikes ................................................................................. 29 The Green Revolution ........................................................................................... 30 Woodway’s Eco Mills ............................................................................................. 30 Knee Brace That Captures Kinetic Energy ............................................................ 31 IT Infrastructure ..................................................................................................... 31 Barriers of Entry and Exit .............................................................................. 33 Barriers to Entry ..................................................................................................... 33 2 G&F: The Funness System Content Barriers to Exit ....................................................................................................... 34 Potential New Competitors ............................................................................ 35 Customer Bargaining Power ......................................................................... 36 Possible Competitors Response Strategy ..................................................... 37 Technology ............................................................................................................ 37 Green Business ..................................................................................................... 37 Pay For What You Use .......................................................................................... 37 Bargaining Power of Suppliers ...................................................................... 38 Hardware: Web Hosting & Cloud Computing ........................................................ 38 Software: Web and Information System Development Supplier ............................ 39 Substitute Products or Services .................................................................... 41 SWOT and Strategic Aim ................................................................................. 43 SWOT Analysis ............................................................................................. 43 McKinsey Analysis ................................................................................................. 43 Strategic Aim ................................................................................................. 48 Positioning Aim ...................................................................................................... 48 Sales Aim .............................................................................................................. 48 Operations Plan ................................................................................................ 56 Analysis Of Options ....................................................................................... 56 Customer Acquisition Process ............................................................................... 56 Revenue Maximization Process ............................................................................ 56 Process of Taking Care of the Environment .......................................................... 57 Customer Retention Process ................................................................................. 57 Current Fitness Levels ......................................................................................... 59 Goals ................................................................................................................. 59 Location ........................................................................................................ 73 Infrastructure, Land and Buildings ................................................................. 74 Payment Policy ............................................................................................. 78 Quality, Environment, Health and Safety Management ................................. 79 Staff And Job Definition ................................................................................. 80 Job Schedule ......................................................................................................... 80 Cost, Expenditure And Investment Summary ............................................... 81 Local Rent Fees .................................................................................................... 82 3 G&F: The Funness System Content Refurbishment ....................................................................................................... 83 Solar Cells Installation ........................................................................................... 83 Lockers .................................................................................................................. 83 Machinery and Gym Equipment ............................................................................ 83 Software, Instruments, SPEngine + WT08 and Hosting ........................................ 84 Company’s Creation .............................................................................................. 84 Alarm and Insurance Company ............................................................................. 84 Salaries of the Employees ..................................................................................... 84 Marketing ............................................................................................................... 84 Service Company .................................................................................................. 85 Other Costs ........................................................................................................... 85 Certificates of the Auditors .................................................................................... 85 Utilities ................................................................................................................... 85 Promotions ............................................................................................................ 85 Maintenance .......................................................................................................... 85 Marketing and Sales Plan ................................................................................ 87 Segmentation, Targeting, Positioning (STP) ................................................. 87 Segmentation ........................................................................................................ 87 Targeting ............................................................................................................... 88 Positioning ............................................................................................................