SATS and the strategy in Denmark

Jens Mathiesen

Student thesis: Master thesis

Abstract

Within the last twenty years the fitness industry has grown from basement facilities to large commercial centres. During this development fitness chains has risen and fall. Now the market is highly competitive and is lead by three major chains namely Fitnessdk, Fitnessworld and SATS. Eventhough the market for fitness in Denmark is growing SATS does not seem to gain new costumers; they barely keep the ones they have. While the competitors are doubling their number of members the focus of this master thesis is thus to look into SATS as an organisation to develop a new strategy for the Danish market. The main question in the problem statement is therefore: · What strategic measures should SATS Denmark undertake to successfully create and leverage a brand positioning strategy to keep and gain costumers? For the purpose of the analysis Porters value chain has been used to achieve an overview of the organisation to detect strength and weaknesses. Here obstacles in cultural differences between the countries were discovered, which make the Danish organisation quite inert. Because of the strict control from the Swedish headquarters the Danish organisation seems as only a puppet with no real influence on the strategy developed for the Danish market. This is partly because the Swedish business has a quite different approach to strategy development than Danish business. To analyse the market Porters Five Forces coupled with cultural branding and experience economy theory has been applied to emphasis special focus on costumers bargaining power. The market for fitness in Denmark is subject to perfect competition, and therefore it is very important to develop a strategy, that will make SATS visible to the consumer. In Denmark the fitness chains are very similar, and therefore it is the location, that until now has been the main factor in choosing a fitness center. Since the strategy for SATS as a whole is service and better educated personnel, it is strange, that the questionnaire showed that only a small part of the consumers knew anything about SATS. The market has a large potential of consumers in the targeted group (late thirties – mid forties). This also makes it difficult to understand, that SATS is only situated in two cities in Denmark. The focus should thus be on expansion and cultural branding towards the consumers lifeprojects in constant interaction with the consumers trough dialogue and guided transformations helping them to reach their personal goal while retaining them to SATS.

EducationsMSc in International Marketing and Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2008
Number of pages127