Marc is wrong in thinking the other fitness center is his only competition with all the other surrounding business. Marc has competition for different reason with the surrounding business. We all know the gym is his biggest and most direct competition, but he can work around that by changing his prices for loss and offer more, or come with different programs to offer member at his gym. My opinion the golf driving range, the sporting goods store, and the bowling alley viewed as substitutes, or competition has they offer similar products and services. If you think about Golfing and Bowling are other forms of exercise, I call it the Fun Way to be active while enjoying a hobby with friends and family.
I feel the sporting goods store is competition since they may sale the similar exercise equipment that Marc’s gym has. For example, I was a member at a gym for a year and I sick of dealing with the traffic, so I decided to purchase a treadmill and some other things. I canceled my membership and enjoyed working out at home. The fast-food, bar and game room could bring business to the gym. Marc could run specials and ask the owners if he could hang his business flyers in their establishments.
Marc, could also get with the other owners and see if they could do some could of rewards offers to bring more business to all of them. He could also open a store inside the fitness center that sold sporting supplies and clothes. He also to be competition to the competition I mean he is opening a 24-Hour Fitness Center. So, he cannot be average, be a little over the top and willing to put his name out there.