1.1 Value proposition
PureGym was founded in the year 2008 and is one the UK leading gym chain. The firm is providing multiple sorts of services to the people on its premises. PureGym intend to expand its business into the US market. Any company gets success in the new market when it creates value for its stakeholders (Pure Gym, 2020). Ways in which PureGym will create value for the stakeholders is explained below.
• Customers: This entity comes in category of key players because they have a high interest and power in the Gym business. They influence ways and the type of service gym provide to the people. They always express their interest and accordingly services are provided by the gym (Van Den Berg, & Braun, 2017).
• Employees: Employees also come in key player’s quadrant because they provide service to customers on behalf of the company and they influence firm performance. They have higher interest in the company.
• Shareholders: Currently, firm shares are not traded on the stock exchange but it has key shareholders and they have influence and interest on company and come in the key players’ quadrant.
• Suppliers: They come in minimal effort quadrant because they supply products to number of gyms. Hence, they have less interest and influence on the firm (Rodríguez-Medina, 2016).
Task 2: Uppsala model
It is the model that explains the way in which internationalization of any business happened. As per this model internationalization of any business happened in a specific manner. Initially the firm operates in its own nation and gain experience in the industry. Firmly establish contact with any foreign company or via independent representative sell its product in the foreign market. Once product demand increased in the foreign market company buy stake in any firm and make it subsidiary and through it more actively do business in the foreign nation. After gaining a few years of experience business firm start manufacturing its product in a foreign country. In this way, internationalization of entire business happened.
The model is still validated or successfully applied by an SME or small and medium enterprise in their business. This is because they have a lack of resources and through specific channel only they can develop a market for their product in the foreign land. Through this they also do testing whether their product will be acceptable in the foreign land. Gradually, these firms either buy stake in another company or develop own production plant. These SME are not able to take huge risk and directly open production plant or start operations in the foreign nation even they have sufficient resources. Thus, in this way, Uppsala model applied on them.
The limitation of this model is that it does not take into account options on franchisee model and strategic alliance by using which in short term business firms enter into the foreign market. It can be said that the Uppsala model has practical application for the SME but not for large size firms as they can easily enter into the strategic alliance.
PureGym can follow the Uppsala model and under this as trial it can commence its services in the US by establishing one or two units. If people prefer its service, then mentioned firm can develop a chain of its gyms in the US market considering Uppsala model. Thus, this model has both relevance and application for the company. Further by doing aggressive marketing firm can increase its customers in the US market.
Books and journals
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Beesley, T., & Fraser-Thomas, J. 2019. Claims of positive youth development: a content analysis of mixed martial arts gyms’ websites. Leisure/Loisir. 43(1). 1-25.
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Calesco, V. A., & Both, J. 2019. RATING SCALE FOR QUALITY OF SERVICES PROVIDED BY gyms (QUASPg). Journal of Physical Education 30.
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Heroux, L. 2017. Comparative marketing strategies of fitness clubs in the United States and Canada. Economics World. 5(6). 529-538.
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Mago, Z. 2017. New trends of marketing communication based on digital games. European Journal of Science and Theology 13(6). 171-182.
Onea, I. 2019. Gyms and Social Interaction. LOGOS, UNIVERSALITY, MENTALITY, EDUCATION, NOVELTY. Section Social Sciences. 8(2). 21-34.
Rodríguez-Medina, M. J. 2016. An approach to the study of the use of English in the activities of Spanish gyms. Spanish in Context. 13(1). 128-148.
Senekal, M., and et.al., 2019. Dietary supplement use in younger and older men exercising at gyms in Cape Town. South African Journal of Clinical Nutrition. 1-8.