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Myers Fitness A Launching Dilemma For A Boot Camp Case Solution

Solution Id Length Case Author Case Publisher
2009 701 Words (4 Pages) Elizabeth M.A. Grasby, Jessica Bond Ivey Publishing : W17266
This solution includes: A Word File A Word File

The following report conducts a feasibility analysis to determine if it would be the right way forward for Logan Myers to start his bootcamp and by evaluating a set of alternatives, will recommend the best course of action that would generate the highest value for Myers.

Following questions are answered in this case study solution

  1. Introduction

  2. SWOT Analysis

  3. Problem Identification and Available Alternatives

  4. Analysis of the Alternatives

  5. Recommended Solution

  6. Implementation

Case Analysis for Myers Fitness A Launching Dilemma For A Boot Camp Case Solution

2. SWOT Analysis

Strengths

  • High number of people engaged in fitness activities

  • Myer’s expertise in developing custom workout routine for his friends and family

Weaknesses

  • Substantial investment required

  • Seasonal income mainly during summer vacations

Opportunities

  • 18% of gym members attended the gym as they considered it not important. Bootcamps would influence the lifestyle

  • Differentiation from gyms by incorporating a set of different outdoor exercises.

Threats

  • High competition wit over 50 gyms in the city together with other fitness opportunities

3. Problem Identification and Available Alternatives

The major problem that Myers faced is to decide whether to pursue partnership with Oxygen Fitness in which he would be conduct his boot camp sessions and store equipment on site only rather than renting soccer fields. However, Myer would have to pay 50% of the total registration fee in return. Hence, a feasibility analysis is required here to decide if Myer should start the bootcamp session on his own or partner with Oxygen Fitness.

4. Analysis of the Alternatives

Based on the incremental cost analysis and comparing the two options of either starting the business on own or partnering with Oxygen Fitness, the analysis indicates that in the case of partnership, Myers would be paying additional $161 as shown in the following table:

 

Partnership with Oxygen Fitness

Setting up own

Incremental

 

In $s

In $s

In $s

Revenue Earned

 $6,800

 $5,320

 $1,480

Personal Trainer Policy

 $-  

 $(175)

 $175

Soccer field rental

 $-  

 $ (841)

 $841

Advertising Expense

 $-  

 $ (100)

 $100

Cargo Trailer Depreciation

 $-  

 $ (643)

 $643

Registration Fee Commission

 $ (3,400)

 $-  

 $ (3,400)

Incremental Costs

 

 

 $(161)

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