Bally Total Fitness

In: Business and Management

Submitted By gatotharyadi
Words 1045
Pages 5
Bally Total Fitness – Case Summary

Bally Total Fitness is born in 1962 and become leading firm in US Health club industry. Since 2002, Paul Toback as CEO has did a lot of intervention to avoid Bally from banckrupcy.
Consumer demand for health club has been arise in USA. By 2004 US health club industry took in revenur of $ 14.1 billion with more than 26.000 health club operated in the United States, compare in 1987 only 11.800 health club (Exhibit 1). The demand cause Americans become more concern about their health since two third of adult population categorized as overweight and nearly one third as obese. The motivation to join health club are a disire to lose weight, to get in shape, to meet people or to reduce stress. The frequency of health club attendance in 2001 has arise compare to 1987. The people visited health club more than 100 days per year in 1987 only 31% become 41 % in 2001 (Exhibit 2). More people in younger age has increase as member in health club 12.3% in 2001 compare to 1997, and people in age 45-54 also increace 11.5% as well as age 55+ increase 13.1%.
Most club equipped facilities with aerobic and weight machines. Some health club provide swimming pool. Total capital required for 40.000 – 50.000 square-foot health club was roughly $1.5 million, with $500.000 in equipment alone. Smaller health club can be built with cost $144.000 to buy equipment for 10.000 square-foot.
Health club format in United States : * Owner-operated clubs : Operated by their owners. Has many location as chain health club. Centralize procurement, program design, marketing, finance, accounting and collections. * Franchised clubs : Succesfull health club concept franchised to multiple investors who paid a fee to franchisor. Franchisees received professional advice and advertising support and enjoyed the purchasing power of a large chain. * Design and…...

Similar Documents


...1. List the five Components of Fitness. 1. Cardio Respiratory Endurance 2. Muscular Strength 3. Muscular Endurance 4. Flexibility 5. Body Composition 2. There are seven recognized Principles of Exercise; List at least five of them. 1. Regularity 2. Progression 3. Overload 4. Balance 5. Specificity 3. You are designing a fitness program for your Soldiers; list the Three Phases of Conditioning that you must consider. 1. Preparatory 2. Conditioning 3. Maintenance 4. When we analyze our wartime mission, we must keep in mind the physical demands of our daily activities and functions. This is done by following the Seven-Step Planning Process. List in order the Seven-Step Planning Process. Analyzing, developing fitness objectives, assess the unit, determine the training requirements, develop fitness tasks, develop training schedules, and evaluate the training 5. List the three groups of Soldiers that may require a Special PT Program. • Those who fail the APFT and do not have medical profile. • Those who are overweight/ body fat according to AR 600-9 • Those who have either permanent or temporary medical profiles. 6. What does the acronym FITT mean? Frequency Intensity Time Type 7. There are four well-known stretching techniques; List at least three of them. -PNF, Static and Passive 8. What is the proper term for the ability to move the joints or any group of joints through an entire normal range of motion? Flexibility 9. What are the three distinct......

Words: 430 - Pages: 2

Notes on Bally

...Body Needs Something (TM) Survey released in January 2004 by Bally Total Fitness more than 97% of Americans are aware that the United States is the world’s most obese nation and more than 64% stated that this is embarrassing to them personally. More than 97% of survey respondents who felt they were unfit or overweight want to lose weight, yet only 25% are currently following a diet program. The response to this survey demonstrates that with effective marketing Bally has the potential market available to improve its new membership revenues, as such demographics will only improve with improvements in both diet and exercise. Additional products and services Significant opportunities exist to increase revenues beyond those generated by the sale of membership plans and receipt of monthly dues. By integrating personal training, private label nutritional products, and most recently the Weight Management Program into its core fitness center operations, the Bally Total Fitness brand has been positioned as the total source for all of the company’s members wellness and fitness needs. Additionally, these incremental revenues do not require significant capital investment as they leverage the growing distribution platform that the company’s fitness centers have become. Major Threat: Lately major concerns about the company’s ability to deliver results against a backdrop of increasing competition for fitness club operators have arisen. In a trend that is expected to......

Words: 471 - Pages: 2


...Chapter 2 Total health and fitness lifestyle benefits What Is Total Health and Fitness? The term total health (wellness) and fitness may be defined in a variety of ways. The most commonly used definition incorporates 5 areas- the mental, emotional, spiritual, social and physical. Although each area is important to your total health and well being, in this text we will only emphasize the physical characteristics of total health. However, since no single area can stand fully separated from the rest, we will discover how small parts of each area are inevitably intertwined with each other. When defining physical fitness, two terms are commonly used: health related fitness, and athletic performance related fitness (also referred to as motor, or skill fitness). The components of these two types are as follows: Health related fitness • Cardiovascular endurance • Muscular strength • Muscular endurance • Muscle and joint flexibility • Body composition (lean mass vs. fat mass) Athletic Performance Related Fitness (motor or skill fitness) • Cardiovascular endurance • Muscular strength • Muscular endurance • Muscle and joint flexibility • Body composition • Coordination • Speed • Agility • Power • Balance • Reaction time • Neurological efficiency Although the five components of health fitness are included in athletic fitness, the additional......

Words: 2397 - Pages: 10

La Fitness India

...appealing body physique (slim and toned for females, muscular and built for males) serves as a perfect business opportunity for L.A. Fitness to expand into the Indian market.         Opening L.A. Fitness in India to promote good health and well-being the “western” way seems fitting to the common “East meets West” motto.  L.A. Fitness established in 1984 and has acquired Bally Total Fitness which currently has operations outside of North America in China and Korea. L.A. Fitness has based its strong expansion from its commitment to understanding and meeting the distinct needs of each community they serve. It offers a wide range of amenities beyond the core gym machines/free weights such as swimming pools, tennis courts, hot tubs, saunas, group classes, personal training and most importantly highly trained staff. This allows for a fun, pleasurable and effective workout for all ages and fitness level Our target market will be the young aged, middle class. The Indian middle class is projected to grow over the next two decades from 5% of the population to more than 40% and represent the fifth largest consumer market in the world. Furthermore, the Indian GDP per capita is expected to rise from $3,000 currently to $15,000 by 2020. With the growing middle-class, income levels rising and the impact of the Western culture in India, an American style fitness center has the potential to flourish. Social status is of high importance in India and this is not a new phenomenon in India,......

Words: 8734 - Pages: 35

An Analysis of the U.S. Health Club Industry in 2004 and the Role of Bally Total Fitness

...An Analysis of the U.S. Health Club Industry in 2004 and the Role of Bally Total Fitness Executive Summary Introduction The rise of the U.S. health club industry can be traced back to the 1980s and 1990s when the majority of health clubs emerged. By 2004, this $14 billion industry claimed 41 million members. Although the health club industry operated in a perfectly competitive market, several prominent key players gained large market share, including Bally Total Fitness and 24 hour Fitness. This perfect competition encouraged entry of smaller emerging firms into the industry. In 2004, the health club industry consisted of 26,000 clubs in the U.S. Of this growing market, the fifty largest firms were responsible for 33% of industry revenue and 38% of the clubs was not-for-profit. The for-profit industry was divided into the following formats: owner-operated clubs, franchised clubs, design and management companies and health spas. Bally Total Fitness, the largest publicly traded health club operator in the United States in 2004, claimed over 3.6 million members worldwide. This multi-million dollar company had earned a reputation as being the “largest and only nationwide commercial operator of fitness centers” in the United States, a substantial leap from the single modest club that first opened in 1962. Several advantages contributed to Bally’s success over the other health clubs in the industry.......

Words: 3131 - Pages: 13


...In 2004, for the health club industry there is a high threat to new entrants due to the fast, growing trend to get in shape and fight obesity, the lack of a dominant player in the industry, and low barriers of entry. Because of the health concerns and the movement to live a healthier lifestyle, the demand for fitness alternatives is high and the most favored alternative is to join a fitness center. The nature of the industry is fragmented, which is why no player has a market share larger than 5%. The largest reason why there is a high threat for new entry is the low barriers of entry. The level of competition is high and the industry is favorable for continued growth. There is low regulatory oversight and industry assistance by the government. While economies of scale can help for profitability, it is not a requirement as there are many small successful health clubs. The consumer push for more “pay as you go” programs is starting to make an effect, which is causing the switching costs to decrease. The startup cost can be high barrier of entry, but leasing operations, low average wages due to unskilled staff members, and buying used equipment help reduce this initial capital investment. The only other high barrier is the time and cost it takes to grow brand reputation, as existing players have strong ties to their members through contracts and brand loyalty. Overall, the combination of these factors result into a high entry threat, and decrease industry returns. The......

Words: 887 - Pages: 4

Bally Total Fitness

...A Case Analysis of Bally Total Fitness’s External Environment Group 2: Meghan Cree, Sarah Medve, Rachel Hamrick,               Jacob Rath, James Wallerstedt, Samuel Kube Due: 01/27/15 Word Count: 2039 Case: Bally Total Fitness         By 2004, Bally Total Fitness was a major leader in the $14.1 billion health club industry. With over 400 million facilities worldwide, Bally was the “largest publicly traded health club operator in the United States in 2003” (Wells, John R., 1-7). Bally’s success was fueled by many components including membership revenue, various products and programs, and their recognizable, worldwide image; however, in 2004, Bally faced a major shock to its reputation. Fraudulent accounting practices were discovered and examined, resulting in an uproar from shareholders, complaining of financial misrepresentation. As a result, Bally Total Fitness faced a drop in their stock price, lawsuits from current shareholders, and a damaged repute. The following analysis will evaluate how the general external environment affects Bally Total Fitness,  examine Bally Total Fitness’s current standing in the health club industry, options on how to rebuild its status in this industry, and solutions to implement for eliminating any skepticism among shareholders and increasing membership numbers. Macro–Environment Analysis Gym and exercise equipment manufacturers are constantly upgrading current models of exercise machines as well as developing innovative......

Words: 2172 - Pages: 9


...Bally Total Fitness Marketing AuditBally Total Fitness is the largest, and only nationwide, commercial operator of fitness centers. Bally's has approximately four million members and 420 facilities across the United States and around the globe. (, 2004) A marketing audit was performed on the company in order to assess their total marketing program to see what was and was not working to increase business. The following will summarize key findings of environmental aspects and marketing. Finally, any recommended actions that may be considered for future planning will be discussed. The environmental aspects that were considered for the Bally Total Fitness audit were demographics, markets and competition. Demographic trends have shown that the older segments of the United States (ages 45-65+) are growing the fastest. Bally Total Fitness would be wise to consider marketing towards this age group as their needs change. An estimated 50 million people will be members to a fitness center in just six years, the year 2010. This is due to an increased desire towards healthy living. The general population is becoming more aware of the benefits of exercise to promote health and wellness. The Markets part of the audit shows that there is three major trends that health clubs should be attentive of. These major trends are insurance paid weight-loss, a global battle against obesity and an end to low-carb confusion. Health clubs are part of the solution and should......

Words: 4207 - Pages: 17


...Get a total-body makeover in just 21 days! Top Hollywood celebrity trainers help you drop five pounds and firm up all over. By Nicole Dorsey; Photos by Susan Pittard Try a 3-Week Hollywood-Style Slim-Down When a Hollywood celeb has to slim down in a hurry, she hires a slew of professionals to whip her into shape. Now you can do the same. We asked celebrity fitness pro Gregory Joujon-Roche and his Los Angeles–based Holistic Fitness team of trainers, nutritionists, and chefs to develop a three-week program guaranteed to help you drop at least five pounds, blast fat, and firm up everywhere. The team’s methods have worked for such clients as Demi Moore, Rachel Weisz, singer Pink, and even Brad Pitt, who have all called on Holistic to help them reach their better-body goals. Follow the strength and cardio routines, and in less than one month, you’ll be able to show off an A-list body of your own! Your 3 Weeks at a Glance Monday Strength workout Tuesday Cardio in intervals Wednesday Strength workout Thursday Cardio at a steady pace Friday Off (Optional: Yoga class or DVD) Saturday *Cardio in intervals or Strength workout Sunday Cardio at a steady pace *Note: You can double up any workout to do both cardio and strength on the same day. If weight loss is your goal, however, Gregory Joujon-Roche recommends doing the cardio component first, to take advantage of higher energy levels and maximize fat burning. The 21-Day Total-Body......

Words: 1355 - Pages: 6

Turnaround at Balley Total Fitness

...Turnaround at Bally Total Fitness? 1. Evaluate BFT’s business strategy, identifying the key success factors and risks. The key success factors include: BFT offers various memberships according to members in different age and income levels; a few membership fee payment plans are available to choose; strong brand identity by nationwide using its service mark; and convenience of multiple locations. The key risks are the competitions with commercial fitness centers, government supported physical fitness and recreational facilities, and competitors with substantial great financial resources. Another risk is the decrease of public’s enthusiasm for fitness and low cost entry to the market because of easier financing. 2. BFT’s revenue recognition policy can be highlighted as: * Revenues from initial membership fees are deferred and recognized ratably over the weighted average expected life of the memberships. Costs of origination of memberships are deferred and amortized in the same way. * Dues revenue is when monthly services are provided. When prepayment is received, the prepaid portion is deferred and recognized over the applicable term. * Unearned finance charges are amortized over the term of the contracts on the sum-of-the-months-digits method, which approximates the interest method. All of the recognition policy sounds right in accordance with GAAP, and is consistent with the underlying economics of the business. 4. The account “Initial......

Words: 322 - Pages: 2


...PART A – Plan the project Most athletes know that getting enough rest after exercise is essential to high-level performance, but many still over train and feel guilty when they take a day off. The body repairs and strengthens itself in the time between workouts, and continuous training can actually weaken the strongest athletes. Rest days are critical to sports performance for a variety of reasons. Some are physiological and some are psychological. Rest is physically necessary so that the muscles can repair, rebuild and strengthen. For recreational athletes, building in rest days can help maintain a better balance between home, work and fitness goals. The main objective of my project of this term is to build up a recovery program for athletes. That is what I am gonna try to study into the basics. Sport is not only about performance, there is a lot of other factors that influence the performance, from the psychological aspect to the physiological condition. The recovery phase and rest is one of the main subject that help to improve athlete s performance. Human is not a machine, we all need rest to restart our body again to reach the performance we want. Rest is not only behind higher performance, recovery periods prevent injuries that are caused by overtraining or a trauma. My project is about recovery program for a specific athlete, and how it can influence his performance. I try to build up a recovery program for him, that is suitable for his possibilities and......

Words: 10073 - Pages: 41

Bally Total Fitness Case

...Group 1 BALLY TOTAL FITNESS 10/02/2014 1. What is this case about? This case is about Bally Total Fitness, an U.S. health club industry founded in 1962. But more generally this case is about the health club industry in the USA and throughout the world. In a first part, there is a general presentation of the U.S. health club industry characteristics. We have some information about people who go to these clubs, proposed activities, equipment and facilities. It presents the different ways of formats in this industry, how the industry is organized: owner-operated clubs, franchised clubs, Design and management companies and health spas. We have some explanations about pricing, ways of sales, general operations and an analysis about the different trends within this industry. We In a second part, we have a deep presentation of Bally Total Fitness. We have information about its foundation, generated revenues, growing, current CEO (Paul Toback). We have a description of the process to sign in with Bally Total Fitness, how a typical club is organized. This part is about the strategic decisions of Bally Total Fitness about its marketing, accounting policies to attract clients. In a third part, we have a quick presentation of Bally Total Fitness’ competitors (YMCA, Gold’s Gym, 24 Hour Fitness and Curves International). We have crucial information about their histories, main leaders, policies, revenues and differences from Bally Total Fitness. Finally, there are......

Words: 2545 - Pages: 11


...advice and tips given in this course are meant for healthy adults only. You should consult your physician to insure the tips given in this course are appropriate for your individual circumstances. If you have any health issues or pre-existing conditions, please consult with your physician before implementing any of the information provided in this course. This product is for informational purposes only and the author does not accept any responsibilities for any liabilities or damages, real or perceived, resulting from the use of this information. MEGA Training – | Greg O’Gallagher   2 How To Use MEGA Training For Superhero Strength & Muscle Gains Building muscle has been grossly over-complicated in the fitness industry for the last two decades. My approach is one of simplicity. As Bruce Lee said, strip away the unessential. It’s only when you hone your training down to the essentials, do you actually experience incredible results. This is where MEGA Training comes in, or Minimum Effort Growth Acceleration Training. MEGA Training is a training style I have coined that focuses your efforts on the key exercises and lifting protocols that will produce the most powerful gains. The ability to cover all your bases over fewer workouts and fewer exercises will allow for a much faster rate of strength and muscle gains. This is because you will experience better recovery, both neural and muscular, and you will be able to train......

Words: 2266 - Pages: 10

Bally Total Fitness Case Analysis

...1. Situation Bally Total Fitness is a public firm in the U.S. health club industry. Since 1962, the company had developed into a large and nationwide commercial operator of fitness centers in the Unite States. But with the increasingly fierce market competition and the internal management problems such as poor accounting standards, the stock price of the company collapsed. Some shareholders had lost faith in the company. A major shareholder of the company was urging the CEO to sell the company. So the company faced two alternatives, one alternative was to sell the company to meet the demand of shareholders; the other alternative was to strengthen its internal control system to remedy the management fault. In this way to restore the stock price, restore the confidence of shareholders, and enable the company to keep a major player in the health club industry. Exercise gyms had a long history in the Unite States which can be dating back to 150 years ago. By 2004, the revenue of the U.S. health club was about $14.2 billion. There were more than 26,000 health clubs in the U.S. and over 13% of the U.S. populations for about 41 million were the members of these club. About 60 million people used health club in 2002 in the U.S. If coupled with non-members. One key driving point of health club phenomenon was the growing awareness about health and well-being, and concern about obesity and its effects among Americans. In 2004, two-thirds of adult populations were recognized as......

Words: 2361 - Pages: 10

Bally's Total Fitness

...healthy and fit, the fitness industry is maintaining steady growth because of better dietary practices and a resurgence to play and become more active. It is no surprise the demand for gyms and health and fitness clubs will continue to rise. Therefore, my paper will cover the critical concepts as it relates to Bally Total Fitness Case Study. I will highlight Bally’s history, macro environment, SWOT analysis, corporate-level strategy, business-level strategy, and my recommendation for Bally Total Fitness. History, Development, and Growth Dave “Wild man” Wildman is said to be the founder of Bally Fitness, but it was Raymond T. (Ray) Moloney back in the early 1930’s who decided to create an affordable past time of pinball. Anyone could play pinball at the price of seven balls for one cent or 10 balls for a nickel. In January of 1932, Ray founded the popular past time while working under Lion Manufacturing in Chicago. The Ballyhoo pinball game was easy to make and very profitable. With the creation of the “Goofy,” the “Airway,” the “Rocket,” and the “Bumper” pinball machines, Bally Manufacturing, under Moloney’s leadership, took off. Bally Manufacturing headquarters remained in Chicago at the same address for almost 50 years. In 1936, Bally Manufacturing developed the automatic dice machine named “Reliance”. This development was an overnight success and prompted further delving into the three wheeled slots, and the newest addition the “Bally Baby.” The “Bally Baby” was a......

Words: 3211 - Pages: 13