BIG JIM’S GYM
Summary
Big Jim’s Gym provides body building and weight reduction services in Glendale, California for men, women and children. Facilities include weight lifting rooms, exercise rooms, pool, sauna bath and a running track. Jim makes every customer go through an initial conditioning course or Big Gym’s energy diet. The Gym has the latest barbell and slant board apparatus and inventory of bandages for accidents. He believes in maximum utilization of resources keeping the staff and equipment busy by making customers follow an hour-by-hour schedule on equipment use. However this leads to customer dissatisfaction since they are requested to come during slow periods if equipment is scheduled to capacity. He does not employ experts or specialists and focuses on a policy of hourly job rotation for all his employees. The fee charged by him is competitive and he pays out marginally more than the minimum wage to his employees. Employee turnover has not been a problem but now memberships have dropped from 500 to 300 in the last 6 months, reducing profits proportionately.
Case Analysis
Problem statement: There is a drop in memberships from 500 to 300 in 6 months. What steps can Jim take in order to reverse/stop this trend?
SWOT Analysis
Strengths: * Well established business * Full utilization of capacity * Low turnover and committed employees * Job rotation for employees | Weaknesses: * A very rigid approach * Spartan atmosphere * Does not contain advance equipments * Lack of experts/certified trainers * Rigid scheduling during slow periods |
Opportunity: * Attracting new customers * Bringing back the customers who dropped out in the past months | Threats: * Competitors with expert trainers/beauty consultants * Competitors with better equipments and apparatus * Reduction in memberships and profits in the last 6 months |
Recommendations:
* Have packages according to the time scheduled for the customer...
