The Five Forces

Retro Fitness’s buyer power is quite high because of the number of gyms that are constantly opening and growing into new locations. Since gym membership, is a consumer product so to speak, there is little that differentiates one fitness center to another. Supplier power is low because consumers have a large fitness market in today’s world. From large organizations, to “mom and pop” gyms, choosing a fitness center comes down to only a few factors. Threat of substitute products or services is also high. There are many alternatives for going to a fitness center. From TV programs, to the “Ab Lounge”, consumers have many different ways to obtain the goals acquired at a fitness center.

Threat of new entrants is also high for opening a fitness center. A fitness center can be anything from “The Muscle Mill” to “Curves”. Since fitness can be anything from strength training to physical therapy, one can have a hard time trying to succeed in this business. Rivalry among existing competitors is high because of the number of gyms in an area. Since the average Joe just needs the basics in a gym, there is not much that separates one gym from another.