Umuc Essay

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itness Case Study The UR UMUC Healthy Fitness Center was opened in 1980 with various types of exercise equipment, martial arts classes, and duel gender locker rooms. Over the past five years the profits have been declining and there is a list of improvements that need to be made which includes: Wi-Fi, cardio monitors, consistent set of clean supplies, etc. It is the manager's job to identify the most important improvement needed at the UR UMUC Healthy Fitness Center and create a plan to incorporate this improvement. The improvement plan completion time is estimated at two weeks or less. Upon completion it will be presented to Mr. Ellison for his approval and/or modification. Porter’s Five Forces Strategy can be seen as a means to create plans that help one entity gain an advantage over another entity, in business, in war, and even in life. According to Porter (2008), "competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry." The five forces are as follows: (1) threat of new entrants, (2) bargaining power of buyers, (3) threat of substitute products or services, (4) bargaining power of suppliers, and (5) rivalry among existing competitors. Threat of new entrants New businesses that enter the industry that is occupied by the current business and can have negative effects on the current business if it is not making steady profits (Porter, 2008). It is important to examine the strategies of the competition to understand how they are attracting customers and making higher profits. Bargaining power of buyers Consumers are buyers and they expect to have high quality goods and

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