- 1 Planet Fitness Inc. – At A Glance
- 2 Planet Fitness SWOT Analysis
- 3 Strengths In The SWOT Analysis of Planet Fitness
- 4 Weaknesses In The SWOT Analysis of Planet Fitness
- 5 Opportunities In The SWOT Analysis of Planet Fitness
- 6 Threats In The SWOT Analysis of Planet Fitness
- 7 Limitations of SWOT Analysis for Planet Fitness, Inc.
- 8 Weighted SWOT Analysis of Planet Fitness, Inc.
- 9 Planet Fitness SWOT Analysis Overview Template
- 10 The key considerations for a Planet Fitness Inc SWOT analysis
- 11 Final Word
Planet Fitness SWOT Analysis: Planet Fitness is an American franchiser and operator of fitness centers.
There are many fitness centers in North America, including in the United States, Mexico, and Panama.
This company has been recognized as one of the most rapidly growing gyms and/or fitness clubs in this industry. In 1992, Marc Grondahl & Michael Grondahl founded it.
Planet Fitness is known for its non-intimidating atmosphere. Their fitness center offers affordable memberships, making them the leader in this field. They are now a fitness powerhouse.
Planet Fitness Inc. – At A Glance
|Company Name||Planet Fitness Inc.|
|Founders||Michael Grondahl, Marc Grondahl|
|Headquarter||4 Liberty Ln W, Hampton, NH 03842, U.S|
|Annual Revenue||$407 Million (FY 2020)|
Planet Fitness SWOT Analysis
SWOT evaluation can be used to identify and analyze the strengths, weaknesses, and potential threats of an organization. This is what gives rise to the SWOT acronym.
SWOT evaluation’s primary purpose is to assist companies in increasing their awareness of the elements that go into making a decision.
SWOT helps companies to understand the external and internal factors that can affect the viability of a decision.
The SWOT analysis of Planet Fitness provides a strategic SWOT analysis of the business and its operations.
To give you an objective and easy view of the strengths and weaknesses of each industrial employer, as well as the potential opportunities and threats, the Nintendo SWOT analysis has been prepared by the author.
Strengths In The SWOT Analysis of Planet Fitness
The firm’s strengths are its capabilities and resources, which it can use to create, develop, and sustain a competitive advantage in the market.
❤️ Diverse Revenue Models: Planet Fitness Inc has expanded its business operations beyond the Services sector over the years. This has allowed Planet Fitness Inc to develop a diverse revenue stream that goes beyond the Services sector and Recreational Activities segment.
❤️ Market Leader Position: Planet Fitness Inc is a strong market leader in the Recreational Activities sector. This has allowed the company to quickly scale up new product successes.
❤️ Talent Management: at Planet Fitness Inc, and Skill Development of the Employees – The success of Planet Fitness Inc’s Recreational Activities industry is dependent on the availability of human resources.
❤️ In an increasingly competitive market: is the first-mover advantage. Planet Fitness Inc is rapidly growing its market share in Recreational Activities.
❤️ Planet Fitness Inc offers: a wide range of product options for its customers. It allows the company to cater to different customer segments within the Recreational Activities sector.
❤️ History of innovation: Planet Fitness Inc is a leader in consumer-driven innovation.
Weaknesses In The SWOT Analysis of Planet Fitness
Planet Fitness Inc’s weaknesses can be due to a lack of resources or strengths that the organization does not have. It is important for decision-makers to determine if the weakness is due to a lack of strategic planning, or a result of making strategic choices.
❤️ Additional costs to build new supply chains and logistics networks Internet and Artificial Intelligence have significantly changed the business model of the Services industry and Planet Fitness Inc must create a strong supply chain network due to the declining importance of the dealer network. This can be very expensive.
❤️ It is very expensive to replace existing experts at Planet Fitness Inc.
❤️ Poor investments in Planet Fitness Inc’s customer-oriented services can result in competitors gaining an advantage in the near future. Planet Fitness Inc must increase its investment in research and development, especially in customer-oriented applications.
❤️ The niche markets and local monopolies: that companies like Planet Fitness Inc are able to tap into are rapidly disappearing. Planet Fitness Inc’s customer network is becoming less and less effective.
❤️ Operating Margins and Gross: Margin could be increased and may place pressure on Planet Fitness Inc’s financial statements.
❤️ The Business Model: Planet Fitness Inc is easily copied by competitors in the Recreational Activities sector. Companyname must develop a platform model to integrate suppliers, vendors, and end-users in order to overcome these problems.
Opportunities In The SWOT Analysis of Planet Fitness
Potential areas in which the firm can identify growth opportunities, profits, or market share are called opportunities.
❤️ Local collaboration: A tie-up with local players could also offer opportunities for growth in international markets. Planet Fitness Inc brings global expertise and processes to the table while local players are skilled in their respective areas.
❤️ Rapid Expansion Of Economy: The US economy is growing faster than any other developed country, which will give Planet Fitness Inc the opportunity to expand into the US. Planet Fitness Inc already has the know-how necessary to compete in the US market.
❤️ Industrial productivity is being improved by rapid technological innovation and advancement: This allows suppliers to produce a wide range of products and services. Planet Fitness Inc can take advantage of this to expand its product lines.
❤️ Customers are moving to higher-end products: This is a great opportunity for Planet Fitness Inc. Planet Fitness Inc has strong brand recognition in premium segments, and customers enjoy excellent customer service from Planet Fitness Inc brands in lower segments. This can result in a win-win situation for the company, as well as an opportunity to increase profitability.
❤️ Potential in Online Space: Planet Fitness Inc will be able to offer new services to customers in the Recreational Activities sector by increasing their adoption of online services.
❤️ Cost reduction for new product launches: by third-party retailers and dedicated social networks. Planet Fitness Inc can take advantage of the new trend to scale up quickly after initial success with a product.
Threats In The SWOT Analysis of Planet Fitness
Threats refer to factors that could pose a threat to the firm’s business model due to changes in macroeconomic factors or changing consumer perceptions. You can manage threats but they cannot be controlled.
❤️ Competition pressures: As new product launches are decreasing in the Services sector. Planet Fitness Inc has been subject to increased competition. Planet Fitness Inc cannot respond quickly to the demands of niche markets where disruptors are focusing because it has a large customer base.
❤️ Growing technological competence: of local participants in the export markets The biggest threat to tie-ups with local players in the export market for Planet Fitness Inc, is the threat of losing IPR. China, in particular, is a country where the intellectual property rights framework has not been very robust.
❤️ The changing demographic: As babyboomers retire and the new generation struggles to replace them, this can lead to higher profits for Planet Fitness Inc. Planet Fitness Inc can see higher profits in the short term, but this could lead to lower margins long-term as younger people are less loyal to a brand and are more open to trying new things.
❤️ The increasing commoditization in the product segment: is the biggest challenge facing Planet Fitness Inc and other industry players.
❤️ Stabilization in rural markets: is a constant challenge for Planet Fitness Inc in the Recreational Activities segment. The reason is that rural markets are slow to adopt products. Planet Fitness Inc has to charge more for rural customers because of the distances involved and the lack of infrastructure.
❤️ The Trade Relationship between the US and China: could impact Planet Fitness Inc’s growth plans. This could lead to a full-scale trade war that can hinder Planet Fitness Inc’s ability to expand its operations in China.
Limitations of SWOT Analysis for Planet Fitness, Inc.
The SWOT analysis is a popular tool for strategic planning, but it does have some limitations.
- Some capabilities or factors can be both a strength or a weakness of an organization. This is one of the main limitations of SWOT analysis. Changes in environmental regulations can pose a threat to a company, but can also present an opportunity for the company. If the company is able to develop products faster than its competitors, it could be a competitive advantage.
- SWOT is not a way to gain a competitive advantage. It should not be a goal in and of itself.
- This matrix is not intended to be a guideline for how strategies might be implemented. The matrix provided an evaluation window, but not an implementation plan, based on the strategic competitiveness of Planet Fitness, Inc.
- SWOT is a static analysis – an analysis of the status quo that includes a few potential changes. The dynamics of a competitive landscape may change as circumstances, capabilities, threats, and strategies change.
- The SWOT analysis could lead a firm to focus too much on one external or internal factor when formulating its strategies. SWOT analysis may not show the interrelationships between key internal and externe factors. This could be helpful in formulating strategies.
Weighted SWOT Analysis of Planet Fitness, Inc.
Due to the limitations of the SWOT matrix/SWOT analysis, corporate managers decided that each firm’s internal strengths and weaknesses should be given weightage.
Organizations assess the impact of future events on company performance and the likelihood that they will occur.
This is a Weighted SWOT analysis. This is better than a simple SWOT analysis. With Weighted SWOT Analysis Planet Fitness, Inc. managers are able to focus on the most important factors and ignore the rest.
This solves the problem of organizations making too many lists, but not enough critical factors.
Planet Fitness SWOT Analysis Overview Template
The key considerations for a Planet Fitness Inc SWOT analysis
– Is there anyone who is critical of the organization and can tip the balance in favor of strengths and weaknesses?
Planet Fitness Inc. can use these strategies to diversify risks from weaknesses and threats from the macroenvironment.
– Find the strengths and weaknesses in Planet Fitness Inc as best as you can.
– Give proper weightage to all factors that contribute to Planet Fitness Inc’s topline and bottom-line growth.
– Determining the skills that are necessary for the survival and growth of Planet Fitness Inc in the Recreational Activities industry.
References Books on Planet Fitness Inc SWOT Analysis
Planet Fitness Inc (2018), “Planet Fitness Inc Annual Report”, Published in 2018.
Euromonitor (2018), “Services Sector Analysis “, Published in 2018.
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
If you’ve read this article this far, I am going to assume that you either love Planet Fitness (or you really enjoyed the SWOT analysis).
No matter what the reason, even if it was just by chance, you still read it and now you know so much about the company. It’s a win-win situation.
Some interesting insights were gained about the brand. They have a solid reputation. Their greatest strength is their acceptance branding, which allows people to walk through their doors even if they don’t want to do so at other gyms.
They also offer great pricing that allows people to exercise at great facilities even if they’re on a tight budget.
They can still overcome the dangers they face, even though they are not particularly severe.
Their current biggest weakness is their ridiculous noise cancellation policy, which can really take away the enjoyment of working out in a gym.
Many people will feel more at ease if they think about this clause.
They have some tweaks to make, but overall it is a great scene!