Anytime Fitness

Tingting Shen (Laura)Ying Liu (Ivy)

Xinwei Hou (Sylvia)Wenlong Su (Vince)

History

A large 24-hour fitness franchise

The first club was established in Cambridge, MN, in 2002

Robust rates

The factors to success

Widely recognized

Global Market Assessment

Fitness industry meets the demand for health

Fitness industry has huge potential

Fitness is popularThe development in some countries

Supporters

Future Outlook in China

A good time to extend to China Ample room for development Chinese have the ability and willing to

pay for the fitness fee Customer groups ---Children ---Women ---Businessmen

Two Competing Companies

Nirvana Fitness

CSI-bally Total Fitness

---most relevant to not relevant

DemographicsEconomicsGovernment CulturePhysical Infrastructure Communication Infrastructure

Rating

DemographicsTotal Population ---1,338,612,968 Middle Class Size--- 70 million people $10,000 US

incomeaverage age --- 35.2Urban/ Rural Composition--- 43% urban population

Government Government Stability

Government attitude to FDI

Legal System

Economics GDP and GDP Growth Rate Per Capita GDP Consumer Inflation Potential Market

CultureView point of beautyWillingness to Stay FitGeneral Perception towards foreign business

Physical InfrastructurePublic transportation

Communication

InfrastructureDaily newspapers --- more than 40 million

Television users --- 30%

Internet users --- 298 million (2008)

Key Factors

Legal system

People’s attitude to fitness

GDP per capita of China

Public transportation

Competitive Nations--- JAPAN•Pursue beauty•Improved stature due to exercise•Stress on health

The third-largest economy in the worldStrong consumption powerOpen consumption idea: don’t much care about price

Disadvantages Densely-populated country---

High rent

Ageing problem, low birth rate and population growth rate--- Decreased demand

Economic risk exists after the financial crisis

Competitive Nations--- GERMANY

•German love sports•Fitness industry is the 2nd largest market in Europe•Large medical insurers reimburse fitness costs --- 30 to 200 euro•Government promotes national to do exercise

•Fitness industry:•Rapid developed in late 1990’s--- Closed due to improper management and service in 2002--- Steady rise from 2006•Fitness is an active and forward market

DisadvantagesHigh income tax: 33% to 37%

Indirect tax increased 3% from 2008

Fierce local competition--- special services

Short-Term RecommendationsEstablishing partnerships Residential

Communities AdvertisementLocal employees are betterBuild up the comfortable environment

Long-Term Recommendations ------next-five years

100% copy

Build up clubs around the super cities, and then build up the flagship in super cities.

Acquisition

Long-Term Recommendations ------second-five years

Enlarging the range of services or products

Build up the corporate culture depends on the culture difference

Conclusion Anytime Fitness have the ability to develop a global market expansion

strategy

Anytime Fitness must seek a new market to develop their business

The business environment in China is favorable for Anytime Fitness

Chinese market has huge profits and intense competition at the same

time

Japan and Germany also have the market potential to develop fitness

industry

The high-equipment and friendly atmosphere are the key to success

Anytime Fitness must has a short and long plan to develop

Thank you!