Essays on Critical Evaluation of an Australian Business: Jetts Case Study

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The paper "Critical Evaluation of an Australian Business: Jetts" is a good example of a business case study.   In this assignment, a critical evaluation of the Jetts fitness club in Australia is presented. Three key issues are about the business are examined as follows. The first one is how the business has managed to use its unique model to gain competitive advantages over its competitors in the industry. Different ways in which the business model employed by Jetts has revolutionised the health and fitness industry in Australia are presented. The second issue involves evaluating specific ways in which the company has achieved success in the industry.

This covers different areas such as resource utilisation, consumer value proposition and profitability. Lastly, general recommendations are presented to the management of the enterprise. The recommendations, which cover a broad range of issues, seek to provide different ways by which the company can improve its position in the market. Critical evaluation Jetts is one of the leading chains of fitness clubs in Australia. Started back in 2007 as a fully owned Australian chain of fitness clubs, the business has grown into one of the leading players in the health and fitness industry in Australia (Jetts 2014).

This success has been demonstrated by its performance in the market in terms of expansion and profitability. Currently, the business is operating 210 clubs in Australia (Jetts 2014). Its financial performance has also been improving over the years. Since the overall performance of an organization is determined by how different factors interact with each other, the entrepreneurial success of Jetts depends on how well it has performed with regard to these factors. To begin with, Jetts has succeeded in the Australian market and more recently the New Zealand market because of its revolutionary business model.

Theoretically, a business model incorporates different ways in which a business uses its resources and capital to influence its sales and profitability by using strategy, management, innovation and processes (Nielsen 2012, p. 37). According to Porter (2008, n. pag), a business can create a competitive advantage in the market by utilising any of the four key strategies: cost, differentiation and focus. Additionally, a firm can leverage on any of these strategies by employing an appropriate business model typology that focuses on strategy, customer value or resource utilisation (Weinhardt et al. , 2010, p.

74). Jetts has utilised these concepts in its business model. Initially, the fitness club was started based on a lean concept that achieved a competitive advantage in the market by minimising its operational costs. The benefits derived from this model are transferred to clients in the form of reduced prices for services. This revolutionary business model has a strong basis for theoretical development. This was achieved by differentiating the services of the new organisations from those of traditional gyms in the market.

Whereas large traditional gyms focused on a wide range of classes and other services to their members at relatively high costs, Jetts focused on providing to the market a new type of gym services that are characterised by unlimited access and reduced prices (Cooper 2010, n. pag). Price reductions were based on introducing shorter and cheaper monthly contracts with clients, unlike traditional gyms that offered contracts that lasted for a year. As well, the company has achieved cost leadership in the market by minimising its operational costs in the market.

This has been attained by maintaining a lean workforce in its clubs. This way, the company has successfully used a strategic business model that has revolutionised the health and fitness clubs industry in Australia.

References

Barnes, C, Blake, H & Pinder, D 2009, Creating and delivering your value proposition: managing customer experience for profit, Kogan Page, London.

Cooper, J 2010, ‘Idea that works out: no-frills gyms that stay open 24 hours a day’, The Australian, November 26, 2010, viewed 18 April 2014,

Den Ouden, E 2011, Innovation design: creating value for people, organizations and society, Springer, Verlag.

Fitness Australia 2012, ‘The Australian Fitness Industry Report 2012’, viewed 19 April 2014,

Jetts 2014, ‘Our Journey’, viewed 19 April 2014,

Keig, D & Brouthers, L E 2013, ‘Major theories of business strategy’, in T J Wilkinson (ed), Strategic management in the 21st century, Praeger, Oxford, pp. 3–24.

Nielsen, C 2012, ‘Moving towards maturity in business model definitions’, in C Nielsen & M Lund (eds), Business models: networking, innovating and globalizing, Bookboon.com, Copenhagen, pp. 33–58.

Porter, E M 2008, Competitive advantage: creating and sustaining superior performance, Simon and Schuster, New York.

Sehgal, V 2010, Supply chain as strategic asset: the key to reaching business goals, John Wiley & Sons, New York.

Weinhardt, C, Blau, B, Conte, T, Filipova-Neumann, L, Meinl, T & Michalk, W 2010, Business aspects of web services, Springer, Heidelberg.

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