1. Anytime Fitness Anytime Fitness Tingting Shen (Laura) Ying Liu (Ivy) Xinwei Hou (Sylvia) Wenlong Su (Vince)

2. History History A large 24-hour fitness franchiseThe first club was established in Cambridge, MN, in 2002Robust ratesThe factors to successWidely recognized

3. Global Market Assessment Fitness industry meets the demand for health Fitness industry has huge potential Fitness is popular The development in some countries Supporters

4. Future Outlook in China A good time to extend to China Ample room for development Chinese have the ability and willing to pay for the fitness fee Customer groups ---Children ---Women ---Businessmen

5. Two Competing Companies Nirvana Fitness CSI-bally Total Fitness

6. ---most relevant to not relevant ---most relevant to not relevant Demographics Economics Government Culture Physical Infrastructure Communication Infrastructure

7. Demographics Total Population ---1,338,612,968 Middle Class Size--- 70 million people $10,000 US income average age --- 35.2 Urban/ Rural Composition--- 43% urban population Government Government Stability Government attitude to FDI Legal System

8. Economics Economics  GDP and GDP Growth Rate  Per Capita GDP  Consumer Inflation  Potential Market Culture View point of beauty Willingness to Stay Fit General Perception towards foreign business

9. Physical Infrastructure Physical Infrastructure Public transportation Communication Infrastructure Daily newspapers --- more than 40 million Television users --- 30% Internet users --- 298 million (2008)

10. Key Factors  Legal system  People’s attitude to fitness  GDP per capita of China  Public transportation

11. Competitive Nations--- JAPAN Pursue beauty Improved stature due to exercise Stress on health  The third-largest economy in the world  Strong consumption power  Open consumption idea: don’t much care about price

12. Disadvantages Densely-populated country--- High rent Ageing problem, low birth rate and population growth rate--- Decreased demand Economic risk exists after the financial crisis

13. Competitive Nations--- GERMANY German love sports Fitness industry is the 2nd largest market in Europe Large medical insurers reimburse fitness costs --- 30 to 200 euro Government promotes national to do exercise Fitness industry: Rapid developed in late 1990’s--- Closed due to improper management and service in 2002--- Steady rise from 2006 Fitness is an active and forward market

14. Disadvantages High income tax: 33% to 37% Indirect tax increased 3% from 2008 Fierce local competition--- special services

16. Short-Term Recommendations Establishing partnerships Residential Communities Advertisement Local employees are better Build up the comfortable environment

17. Long-Term Recommendations ------ next-five years 100% copy Build up clubs around the super cities, and then build up the flagship in super cities. Acquisition

18. Long-Term Recommendations ------ second-five years Enlarging the range of services or products Build up the corporate culture depends on the culture difference

19. Conclusion Anytime Fitness have the ability to develop a global market expansion strategy Anytime Fitness must seek a new market to develop their business The business environment in China is favorable for Anytime Fitness Chinese market has huge profits and intense competition at the same time Japan and Germany also have the market potential to develop fitness industry The high-equipment and friendly atmosphere are the key to success Anytime Fitness must has a short and long plan to develop