Analysis Of Competitive Strategy Of Sinofit Fitness Group Co.,Ltd.

Fitness Industry,included in the Fitness Leisure Industry,which is an important part of the Sports Industry.The sports industry has broad prospects.According to the 2018-2023 Research Report on the market prospects of Sports Industry in China issued by the Chinese Academy of Commerce and Industry,and the 14th five year plan for sports development issued by the State Administration of Sports,from 2012 to 2019,the output value of sports industry of China had increased from 0.95 trillion yuan to 2.95 trillion yuan,with an average annual compound growth rate of 17.57%.The industrial scale grew rapidly.In 2021,the commercial gymnasium market of China reached 274.1 billion yuan(using the new statistical caliber),playing a decisive role in the national economy.Started in 2004,Sinofit Group is one of the earliest private fitness enterprises to enter the fitness industry.There are 95 gym-pavilions of Sinofit in 11 provincial administrative regions currently.In 2018,both the total assets and the annual turnover of Sinofit reached 1 billion yuan.Now it is the market leader in Shandong Province and a market challenger in China.Since 2019,the competitive environment in the fitness industry has become increasingly fierce,and the profit margin has declined seriously.What’s more,Sinofit meets with many problems and challenges such as high debt ratio and a weakening of brand appeal.The industry is in a later stage of the growing period,with lots of phenomenons of the mature period.The intensification of competition in the industry and the plight of the enterprise’s financial situation forced Sinofit Group to carry out strategic adjustment from 2019,shifting from a Differentiated Strategy to an Optimal Cost Supplier Strategy.The optimal cost supplier strategy is what Porter called the "intermediate type",which is difficult to help enterprises succeed.In fact,Sinofit Group has suffered from the continuous decline of market share since 2019.When the prices and services are highly consistent between fitness clubs,Sinofit is no longer distinctive,but goes with the tide,willing to be a follower of the market.According to the idea of "consistency analysis" of Porter,this thesis evaluates the current competitive strategy and finds that the current competitive strategy is inconsistent with the objectives of the enterprise,which is also unsuitable for the long-term development of the enterprise.It is necessary to optimize the competitive strategy.Then,according to Porter’s "method of formulating and optimizing competitive strategy",a "strategy clock" model is used to find out the feasible scheme as differentiated competitive strategy,the rationality of which has also been demonstrated.The differentiation strategy of Sinofit Group includes brand differentiation,professional technology differentiation,product differentiation and service differentiation,etc.This thesis formulates specific implementation plans and safeguard measures for the differentiation strategy of Sinofit.The implementation plans include:strengthening the recruitment of coaches and strengthening technical advantages;Promote product differentiation;Improve service level,establish multi-dimensional leading edge,achieve value leadership,and build core competitiveness,etc.The main safeguard measures include:optimizing the organizational structure and integrating within the enterprise;Optimize assets and liabilities to improve financial situation;Improve the welfare and security of outstanding talents to improve their sense of belonging and loyalty.By providing differentiated added value and implementing differentiation competition strategy,Sinofit Group will usher in a recovery of product prices,an expansion of market share.Sinofit is hopeful to get greater achievements in the fitness market in first-tier cities in 5 to 10 years,achieving the corporation strategy and expanding goal of the group company.