scenario Mac has open a 24 hour fitness center in a fast-growing City. before pu
ID: 393607 • Letter: S
Question
scenario
Mac has open a 24 hour fitness center in a fast-growing City. before purchasing the franchise and starting his new business, Mac looked at the one other fitness center currently operating in that area. in the same general area are video game rooms fast food restaurants a sports bar a golf driving range a sporting goods store and a bowling alley. Mac believes that the one fitness center forms his competition.
based on your opinion and substitutes and complements, do you agree with Mac or disagree and why
Explanation / Answer
I agree with Mac that the other fitness center operating in the areas froms his competition due to the below reasons -
1. The fitness center is a direct competition to Mac's fitness center.
2. There are a number of complementary services and products with the competitor fitness center like video game rooms, sports goods store, fast food restaurants etc. which attract the customers towards the fitness center.
3. There are also substitute services and products like sports bar. a golf driving range, a bowling alley etc. which get the attention of the customers as substitutes to the fitness center.
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