Small group classes compatible
Location
Experienced lifters are the trainers First movers
Unique/Personal gym atmosphere Class leaders are members Environment optimized exercises
Management has no prior experience New business unforeseen risks
High rent
OPPORTUNITIES THREATS
Branding with companies Partnerships with health products
Target Markets Seasonal trends Create a unique product
Growth in Banqiao
Cross fit gyms Copycat gyms Short term profitability
Stagnant economy Large number of gyms opening
Greedy property owner
Source: Organized by the study Figure 5 Strength Central SWOT
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
31
6.1. Strengths
- Powerlifting focused: The gym is in a niche that has some overlap with cross fit but stands apart from most gyms that are all inclusive. By finding a more specific demographic of gym member the company can succeed.
- Small classes: By having classes, gym-goers can learn proper technique as well as train in a social atmosphere.
- Experienced trainers: Trainers don’t get a certification or take a one-week class to become a trainer. Rather they must have devoted years to learning it themselves or with proper training. Also, they must have a passion that goes beyond a 9-5 mentality.
- First movers: Since the landscape is fairly open to this niche of gym, the first movers advantage helps to build momentum.
- Gym atmosphere: The design on the wall, the music played, and the layout of the gym are all influenced by members. Most gyms set it up and don’t take recommendations from members. Taiwanese gyms are very fixed in their ways. This powerlifting gym will cater to the tastes of what people want. And they are encouraged to make suggestions and changes to the gym.
- Class leaders: Those that lead classes will receive free membership at the gym in exchange for their help. Also, by having members become teachers we are empowering the individual. In return, they will care more about the gym and its growth.
- Environment: The gym has all the tools and equipment needed of powerlifting gyms.
There are areas designed for specific lifts, such as a deadlift platform that allows for traction as well as absorbing the impact/sound of dropping the weights. Also, chalk is freely used throughout.
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
32
- Product Positioning: The gym doesn’t fit into a typical mold that has been seen before.
More and more emphasis will be on creating strength lifts that are not at cross fit gyms.
An example would be, boulders. They are extremely heavy balls that are picked up from floor and placed on a platform. Other equipment to will be specialized such as flipping 200kg tires.
- Low maintenance costs: Most ongoing costs are associated with utilities and rent. The large initial investment in equipment is done. Although paying off the debt will take time.
- Accessibility: Gym can open earlier and close later due to members that have achieved certain status. Staff doesn’t always have to be on site. Instead certain members can open and close it.
- Location: The gym is in a location that is easy to get to and the neighborhood has an upper-class income. Also, for the area there is no direct competitor. Many chain gyms exist in the area.
6.2. Opportunities
- Branding with companies: In the long term, in order to achieve higher market penetration, branding our company with other high quality/reputable products must happen. Some things could be as easy as slapping our name onto a product. Also, companies could use our name to promote their products.
- Partnerships with health products: A gym isn’t just a service. It can also be a place where people buy products that they need and use at home. Protein powders and creatine are common and effective workout supplements used by powerlifters and athletes. By establishing relationships with products, we can sell supplements in house and/or have our own brand of products. In the fitness industry, it is common to develop supplement companies alongside a brand.
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
33
- Target markets: The focus on powerlifting is unique. Other gyms do not do so. By
having that as the main focus, in addition to cross fit, the gym stands apart from the pack.
- Seasonal trends: It’s no shock that gyms have a boost in membership with each new year. Having discounts and promotions coinciding with a new year will be done. Also, more activities will be scheduled outdoors in Fall and Spring, where the weather is suitable for outdoor training. And in Summer and Winter the shift towards indoor only events will be scheduled. Additionally, since the target audience includes young 20s, events will be held at the end of semesters.
- Unique product: Once the brand is established, creating a unique product could boost business. This could be a product that is new to the market or hasn’t come to Taiwan yet.
Take for example the Slingshot by Mark Bell. It is a product that people use to train their bench press, but in creating the product it has helped to promote Mark Bell’s brand outside of his gym.
- Growth in Banqiao: Banqiao is an area that has recently been developed. It is very modern and has a high population density. It also has a major train/bus station.
6.3. Weaknesses
- Low starting capital: A gym is nothing without equipment. The essentials must be bought up front. And adding more as time goes on. However, that initial surge of
expenses will put strain on the company in the short term. Also, the equipment has to be of high quality to avoid injuries and so that members are willing to pay the higher prices.
- Limited appeal: The gym isn’t a one size fits all like World Gym. Instead it relies on leveraging its strength, being a powerlifters gym, to sustain itself. If the popularity in powerlifting loses momentum then the gym will have to shift to a new style of facility or shut down.
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
34
- Price: Part of the price is justified by location, but due to the small size of the gym when compared to chain gyms, it may seem like a turnoff to some. Justifying the higher price will be a challenge that the company has to make people understand and accept.
- Unknown brand: As of launching nobody has heard of the gym and it has no carry over reputation from another area. So, making the brand will take time before it is known beyond the neighborhood.
- Size of gym: Space was limited due to cost/ping. Not as spacious as some gyms. But most exercises are done in a fixed place, except for the cross fit exercises that use the middle lane. Also, if people are not good about sharing space then this could be a problem during busier periods.
- Management experience: Current management has no experience in opening a new business. Motivation and personal finance are driving owner to succeed. Initially, management will be limited until more hires can be done.
- Unforeseen risks: As a new business owner, the unexpected may happen. Horror stories of protection money has been heard. The things that you can’t account for are here.
- High rent: To sustain the business the location was based on demographics that are more likely to join the gym. And the location is in Banqiao where rent is fairly high.
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
35
6.4. Threats
- Cross fit gyms: Gyms that advertise as “box gyms” or cross fit gyms are the main competition. There is overlap between our gym and theirs. Many of those gyms also have larger capital investments that allow for their larger size. Also, there are a couple that have been around for a few years so they have reputation on their side.
- Copycat gyms: It is a widely-known fact that businesses get competed quickly in
Taiwan. If a business seems to be successful there are others that want to copy it. Culture of the gym will be the only way to protect it. Other gyms make look the same but not function or feel the same.
- Short term profitability: The initial interest is hard to determine. Are members willing to stay long term? Hard to say until operations start. And the gym must turn a profit in a reasonable amount of time to stay afloat. With high rent, the bills must be paid timely.
And there is a high turnover in membership at gyms.
- Stagnant economy: In Taiwan pay levels have more or less stayed the same for a decade.
Nothing has shown signs that this will change. At the same time, the cost of property has gone up. This is extremely important because many Taiwanese use property as
investments, more so than other countries. If property prices keep rising then more money will go to that rather than gym membership.
- Increasing number of gyms: There are an estimated 300 gyms in Taiwan. And that number has doubled in less than 10 years. With so many options it could become like fighting over pennies.
- Property owner: Although the rental contract is for a couple years, what if the landlord decides to increase the rent? It happens a lot in this market, especially when a landlord sees a very profitable business.
DOI:10.6814/THE.NCCU.IMBA.009.2019.F08
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
36