Situational Analysis

SWOT Analysis

Environmental Force 1: Economic

There are quite a few aspects of campus recreation that are being impacted by economics. First, students cannot work as many hours while being in school. This limits how much students are willing to spend on the membership itself, as well as how frequently they can utilize the facility. Next, with budgeting becoming more limited, the facility may have trouble maintaining staff and equipment, as well as updating the facility. Lastly, operational costs like maintenance and utilities are directly impacting the quality and access of the services offered, as the facility can’t utilize those funds in other areas needing improvement. In the reading, Berkowitz (2022) discusses how the financial risk is a big concern in the health care space (p. 185). Costs of healthcare can cause for a big cut on the income of those who are the targeted audience for this product, which is not the most feasible option for them.

Environmental Force 2: Social

The social impact on these recreational services accounts for many of the issues this organization is facing. At IU Indianapolis, a large percentage of the students commute to campus. This makes the availability to utilize these services much more limited than campus recreation at other schools. Additionally, the targeted audience is in the academic space, which can cause for issues with mental health and burnout due to heavy workloads. This makes the audience neglect utilizing these services, as it doesn’t fit their needs to better their wellness. Lastly, the target audience needs a more flexible and cohesive way to enjoy the recreational services. Both flexibility and innovative changes make the space more appealing and competitive against surrounding gyms. Berkowitz (2022) emphasizes that the social risk includes how others view what service the consumer may use (p. 185). If the targeted audience isn’t satisfied with their experience at the facility due to all the factors previously stated, new customers won’t want to utilize the space either.

Competitive Analysis

Given the targeted audience, the Isray Family YMCA at CityWay has a perceived advantage over the IU Indianapolis Campus Recreation Center. The YMCA includes weightlifting, group sports, pools, wellness services (e.g. sauna), group fitness classes, wellness programs, and personal training. Many of these services, such as personal training, are not made available within the campus recreation services. This facility includes many services available to those who may not prefer solely working out and is more flexible with the year-round access. The facility also prices on a sliding scale, which makes it much cheaper for students. The average pricing for a college student with discounts applied would be around $25-$35 a month, with a one-time fee of around $25-$50 to join. The YMCA is about 1-1.5 miles from campus, making it a great option for students on campus and close to campus. According to Berkowitz (2022), here is tangible and intangible criteria that consumers use to decide what services they want to purchase when deciding amongst competitors (p. 189). The YMCA has an advantage in almost every piece of tangible criteria, including the facility size and amenities, hours, parking, and equipment. However, campus recreation is highly competitive with the intangible criteria, which includes, the atmosphere, lifestyle fit, convenience, and comfortability aspects. According to Berkowitz (2022), the YMCA has a perceived advantage over IU Indianapolis.

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