Life Time Fitness SWOT Analysis

Life Time Fitness SWOT Analysis
SLS 4500
February 2, 2011
BACKGROUND
Life Time Fitness is a full-service gym with several amenities including a spa and salon.
Life Time Fitness is located at 3470 Houston Levee Road in Collierville, TN. This gym is open
24 hours and 7 days a week, and attracts people from throughout the Mid-south. Life Time
Fitness offers an extensive selection of services, including more than 400 pieces of state-of-the-
art cardiovascular and resistance equipment and free-weights. The aquatic facilities at Life Time
Fitness include an indoor lap pool, indoor leisure pool, outdoor swimming pool, saunas, water
slides, and a whirlpool. They have a large gymnasium which includes two full-length basketball
courts, an indoor climbing wall, and indoor volleyball. Free lockers and towels are provided to
all members, as well as wireless internet access. Additional services include athletic leagues &
instruction, LifeCafe (a café and nutrition store), LifeSpa & Salon, LifeStudio (studio for yoga
and pilates), massages, personal training, etc. Life Time Fitness is very family friendly and even
offers programs specially targeted for children including a supervised child center, summer
camps, and a youth sport leagues. Life Time Fitness is, however, not unique to Collierville.
They have over 91 different locations in 20 different states. Prices vary according to location;
however, at the Collierville location a family membership will generally cost you about
$140/month and a single membership will run for about $70/month.

SWOT ANALYSIS
Strengths
Life Time Fitness has truly set themselves apart from other gyms and workout facilities.
More than just a gym, Life Time Fitness is like a resort. Life Time Fitness has several strengths
that separate them from their competition. Their main strength being that they offer such a high
quality product/service. Life Time Fitness probably offers the most extensive variety of
equipment in the Mid-south. Not only does Life Time Fitness offer a wide range of workout
equipment, but also offers a vast amount of programs including cycling classes, yoga and pilates,
as well as classes on diet and nutrition. Another perk is that members have access to the facility
24 hours a day and 7 days a week, which makes it very convenient for anyone’s work schedule.
Life Time Fitness is also very family-friendly, so families with children don’t have to worry
about keeping their children occupied while working out. There are several classes specifically
for children as well as a supervised child center where only children are allowed to play.
Another strength of Life Time Fitness is the way they promote themselves. Life Time Fitness is
constantly sending out brochures, ads, and coupons in the mail requesting that people come visit
their facility and sign up for a membership. Life Time Fitness also has very loyal customers who
are constantly telling others of their great experiences at the facility, thus creating a noble
reputation.
Weaknesses
Despite the fact that Life Time Fitness boasts so many strengths, they still have their
weaknesses. One of those weaknesses is its location. Life Time Fitness is located off Houston
Levee in Collierville, and in some instances people are traveling up to 20 miles just to use the
gym. So the location of the facility is inconvenient for some, but the overall experience they
receive outweighs this flaw. Another drawback is that during typical workout hours, the facility
gets to be pretty crowded. Although there are several machines, one may find themselves having
to wait for a particular machine. Another problem during peak hours is finding a parking spot;
sometimes it seems there isn’t adequate parking for all of the members. Some members
complain that there aren’t enough knowledgeable staff on hand to instruct members on how to
use the equipment properly. One of Life Time Fitness’s most prominent disadvantages,
however, is its cost. Although they provide top-notch service, the reality is that the membership
fees are not affordable by everyone.
Opportunities and Threats
Life Time Fitness also has opportunities in which they can improve. One opportunity is
to expand by opening up another location to better accommodate members who travel longer
distances. Not only does this better accommodate old members, but it may also attract new
members who weren’t willing to travel the greater distance. Another opportunity would be to
expand the parking lot to help eliminate the parking problem. Offering discounts to certain
individuals, perhaps teachers, government workers, or low-income families, is another chance
for Life Time Fitness to better improve the company. As far as threats that may arise, one threat
would be a gym/facility that is cheaper in price or one that is located in a more fitting location.
Currently, Life Time Fitness’s main competitors, on a national level, are 24 Hour Fitness
Worldwide Inc, Bally Total Fitness Holding Corporation, and Gold’s Gym International, Inc.
[ CITATION Lif04 \l 1033 ]. “Based on IHRSA membership data, the number of health club
memberships in the U.S. increased 10% from 41.3 million in 2004 to 45.5 million in 2008. Over
this same period, total U.S. health club industry revenues increased 29% from $14.8 billion to
$19.1 billion” [ CITATION Lif10 \l 1033 ]. With that being said, another threat would be a new
gym being built in the area that takes away potential customers and maybe even takes away some
current customers.
Bibliography
Life Time Fitness, Inc. (2004). Retrieved February 1, 2011, from Funding Universe:
http://www.fundinguniverse.com/company-histories/Life-Time-Fitness-Inc-Company-
History.html
Life Time Fitness, Inc. (2010). Life Time Fitness 2009 Annual Report.

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Life Time Fitness SWOT Analysis

Life Time Fitness SWOT Analysis

$140/month and a single membership will run for about $70/month.

fees are not affordable by everyone.

Opportunities and Threats

individuals, perhaps teachers, government workers, or low-income families, is another chance

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