German Fitness Industry

COLOGNE BUSINESS SCHOOL (CBS)

Strategic Analysis of the German Fitness Market

Term Paper for "Fundamentals of Consulting"

Winter/ Semester 2015

Student's Name: Christine Heitmann

Master of Arts in International Business / Consulting

Student-No. 1155500032

Table of Contents

Table of Figure iii

1. Introduction to the German Fitness Market 1

2. Theoretical Framework 2

2.1. External Business Environment 2

2.2. Macro Environment Analysis 2

2.2.1. PESTLE Analysis 2

2.2.2. Scenario Analysis 3

2.3. Industry Environment Analysis 3

2.3.1. Competitors: Porter’s Five Forces 3

2.3.2. Competitive Strategic Group Analysis 4

3. Data Analysis 5

3.1. Macro Environment Analysis 6

3.1.1. PESTLE Analysis 6

3.1.2. Scenario Analysis 7

3.2. Industry Environment Analysis 8

3.2.1. Competitors: Porter’s Five Forces 8

3.2.2. Competitive Strategic Group Analysis 10

4. Conclusion 10

Bibliography 12

Table of Figure

Figure 1- Porters Five Forces 4

Figure 2- Sport Activities in Germany on the Numbers of Members 8

Figure 3- Strategic Groups 10

1. Introduction to the German Fitness Market

The German fitness industry is booming. The fitness industry is one of the fastest growing sport segments in Germany. By end of 2014, Germany counted 9.08 million members in over 8000 studios spread in Germany, generating overall revenue of 4.7 billion €. The German fitness industry includes various markets. One of the most popular markets is the fitness studio market. The German fitness studio market is basically differentiated into chains, branches and single fitness studios. A further differentiation can be made between high, medium and low priced studios, offering a broad range of programs.

The awareness of a healthy and fitness is getting stronger, more and more people enroll in fitness programs, permanently new studios are started all over in Germany. But at the same time, the market is very saturated, market entry barriers...