Shorin-Ryu Karate Academy Case Study
...es: · How to further penetrate the youth Market? · Focus on growing current and just try to maintain his adult market? · Begin seeking 2nd location? · Is current advertising effective? · How to develop a better sense of managing? In our analysis, we came across a multitude of factors that directly impact SKA’s current and future operations. Among these factors to be considered in our analysis are changes in the martial arts industry and market, customer base, competition and internal performance. With active participation from our team, the analysis of environmental factors is fivefold: A. Industry Overview B. Market Summary C. Customer Complexity D. Competition Summary E. Internal Operations A. Martial Arts Industry Overview During the mid-1990’s, the commercialized martial arts instruction market achieved one of the nation’s highest growth rates in the service industry (estimated to be at $1.5 billion) and was second only to computer network services. There are several factors that attracted national interest in martial arts, representing the industries positive performance during the 1990’s. Theses factors include: · The physical fitness boom in America fueled interest in martial arts. · Self-defense and concerns in children’s safety. · Increased media exposure to martial arts with movies and television series. · Martial arts used to enhance coordination and condition body for other sports. · Growing participation from adult men and women. · Business organizations sponsored in-house martial art lessons for employees. · Parent/child martial art classes. · Cardio-karate becoming more popular. · Adult education is one of the fastest growing areas. · Children’s health became a focus accounting for 40% of enrollment. · Leisure is one of the leading growth industries during the 1990’s. B. Market Summary o Demographics · Watham, MA - Population: 57,878 - Average Household Income: 44% < $50K · Watertown, MA - Population: 33,284 - Average Household Income: 25% < $50K · Newton, MA - Population: 82,585 - Average Household Income: 59% < $50K o Customer Complexity · Annual household income is greater than $50,000 · Typically an athlete that participates in more than one sport · 77% of SKA’s customer base resides in Waltham, Watertown, & Newton - Watham 56% - Watertown 12% - Newton 9% - Other 23% · Youth market (age 5-17) accounts for 65% of the SKA’s membership base City Population (Age 5-17) SKA Market Share# SKA Market Share% Waltham 6119 141 2.30% Watertown 3124 29 0.93% Newton 10887 27 0.25% C. Competition Summary · 15 direct competitors have been identified in three communities · Monthly price ranges from $30-$120 · Waltham has 6 direct competitors · Newton has 5 direct competitors · Watertown had 4 direct competitors Location Name Enrollment Waltham Bushido-Zen 15 Chung Do Kwan 65 Integrated Martal Arts 100 Masters Self Defense 200 Savoy School of Self Defense 150 Villars Self Defense 65 Newton Chos Tae Kwon Do 200 Chung Moo Doe 100 Esposito's Academy 120 Masters of Karate 150 Ye Sheu Way 100 Watertown American Karate 150 DiRico's Rocky School 55 Tokyo Joe's 65 Wah Lum Kung Fu Academy 160 D. Internal Operations Sensi Jim is experiencing a work overload. This extensive workload is diverting Jim’s potential to improve current operations, such as, maintaining customer accounts, marketing efforts and business growth opportunities. Jim is obviously in need of some support that will enable him to focus more on managing and improving daily operations. This includes: · Lack of trainers and administrative personnel, and issues of uncertainty with voluntary staff. · Inefficient marketing programs · In-house accounting system – sucks! · Inaccurate cash basis accounting method · Inadequate customer (accounts) maintenance program · Poor membership renewal program E. SWOT Analysis Strengths - Well-known Sensi- YMCA Relationship- Free Introductory Class- Summer camps- “Word of Mouth” advertising Opportunities Threats - Summer Camps- Competition - Women’s Awareness- Martial arts movies- Website - YMCA Co-op - Lack of trainers- Work process- 15 competitors- Black belt policy- Customer account maintenance- Inefficient membership renewal- No technology Weaknesses - Lack of trainers- Marketing Strategies- Promotional Strategies- Volunteer workers III. Problem/Decision Statement What is the best growth strategy to achieve the highest student enrollment? VI. Alternatives A. Strategic Alliance with YMCA The SKA will work to form a strategic alliance with the local YMCA that garners from the YMCA’s health and fitness initiatives, community involvement and membership base. Establishing this alliance, in conjunction with YMCA, will give SKA an opportunity to solicit martial ar...