Topic > ASSESSMENT 2: Applying business concepts to the case…

IntroductionAnytime Fitness and Jetts Fitness are two leading 24-hour gyms with notable recent performance in Australia (Heathcote 2013). But upon critical analysis it becomes clear that their business models are different in many ways. This essay states that compared to Jetts, Anytime Fitness has a superior business model by analyzing with the SWOT structure and Porter's generic strategies model. Case Study Overview The business models of the two fast-growing franchised gym chains vary from each other. Born in the United States, Anytime Fitness is the largest health club chain in the world and in Australia with over 260 clubs located in several states and territories. Member fees and offers for each club are customized by the owners under guidance from the head office. It includes a “Corporate Wellbeing” section as part of the business model to attract companies' employees as customers of the group. Members are also provided with a thematic social networking website to communicate about their health and workouts. Regarding the franchise model, an initial membership fee and a fixed monthly fee are required, and a variety of technical and decision support is available to franchisees (Anytime Fitness 2014). Unlike Anytime Fitness, Jetts is an Australian-born company that is relatively small and has a flexible business model. However, it is the fastest growing franchise chain in the fitness industry (Heathcote 2013). One of its biggest selling points is that it offers “no binding contracts” to members, who can cancel their membership anytime they want. Franchise information is not fully disclosed on its official website (Jetts 2014). According to CEO Adrian McFedries, an initial investment of between $500,000 and $600,000 is…halfway on paper…ngth to compete with Jetts. Secondly, benefiting from Anytime's well-developed business model and franchise model, the information and conditions are comprehensively displayed on the website (Anytime Fitness 2014). This will give investors a feeling of reliability and support towards the headquarters, and therefore increase affiliates' confidence in their investment. Last but not least, although free unsubscription seems like a strong point for Jetts, it could carry the potential risk of losing members at a later stage. As a result, it's still questionable whether this offer is a selling point for Jetts. Conclusion Therefore, through the analysis with Porter's generic strategies model and SWOP framework, despite some great features of Jetts, Anytime Fitness is believed to have relatively better business model as it has more strength than Jetts.