Managerial Economics DBA

Managerial Economics

Final Assignment

Program: DBA
Professor:
Student:
Date:
Managerial Economics DBA

Introduction and a Brief History, Development, and Growth of the

Business:

Gold's Gym International, Inc. is an American chain of international co-ed fitness centers
(commonly referred to as "gyms") originally started in California by Joe Gold. Each gym features a
wide array of exercise equipment, group exercise classes, and personal trainers to assist clients. Its
headquarters are in Irving, Texas.
Gold's Gym has been the world's trusted fitness authority since 1965. From its beginning as a small
gym in Venice, California, Gold's Gym has grown into a global icon with more than 700 locations
serving 3 million people across six continents each day. Featuring personalized transformation
plans, state-of-the-art equipment, certified personal trainers, a diverse group exercise program and
a supportive, motivating environment, Gold's Gym delivers the most dynamic fitness experience in
the industry. The Gold's Gym experience recently expanded to include BOOTCAMP group training as
well as GOLD'S STUDIO — which gives members access to boutique-style classes like GOLD'S FIT,
GOLD'S BURN and GOLD'S CYCLE, all under one roof — along with GOLD'S AMP, the first digital
personal training app from a brick-and-mortar gym. More than a gym, Gold's Gym combines
coaching, community, and more than 50 years of fitness expertise to help people around the world
achieve their potential through fitness.

On October 23, 2018—Gold's Gym has announced a record-setting third quarter, the largest for
franchise development in company history. The global franchise celebrated nine international
openings, renewed master franchise agreements for Saudi Arabia and the United Arab Emirates,
and signed a new master franchise agreement to enter Turkey. In addition, Gold's Gym celebrated
one domestic grand opening and signed franchise agreements for multiple locations across three
states in the U.S.
"Gold's Gym continues to distinguish itself as the fitness industry leader, which is exemplified by our
biggest quarter of worldwide growth in company history," said Ken Phipps, director of global
franchising development for Gold's Gym. "Our franchise network continues to expand and thrive as
we extend our proven business model across the globe with the support of additional sophisticated
investors.

https://www.ihrsa.org/about/media-center/press-releases/golds-gym-has-strongest-quarter-of-
growth-in-company-history/
Managerial Economics DBA

When the clock struck midnight on January 1, it signaled the close of Gold’s
Gym’s strongest year of international growth in the brand’s storied history. The
record-setting year included 22 U.S. franchise agreements and 35 grand
openings worldwide.
“We have a very reputable brand, a brand that really relates to consumers, so
we’re continuing to see growth,” shared Adam Zeitsiff, the president and CEO
of Gold’s Gym. “We’ve always been known for getting results and making
people stronger.”

Gold’s Gym significantly expanded its international footprint, opening nine

clubs in Japan, eight in India, five in Saudi Arabia, four in Egypt, two in
Russia, and a new gym in both Turkey and Armenia. On a domestic level, the
brand opened new locations in New York, Florida, South Carolina and
Michigan, with several new franchise agreements across the country also
signed.

But Gold’s Gym isn’t finished growing. After a strong year of international

expansion, Zeitsiff and the brand are shifting their focus to more aggressive
domestic growth. And he believes success in 2019 has set the brand up for an
even bigger year in 2020.
“We’re using our international success as a catalyst for domestic growth,” said
Zeitsiff. “We’ve tripled the size of our domestic franchise development team
and upped our marketing budgets. Now that we’ve got good momentum with
our brand, that’s going to pay off for us.”

This shift in focus and reinvestment in domestic growth can best be

encapsulated by the brand’s campaign in 2020: “Change is Strong.”

“’Change is Strong’ focuses on our members — they make small changes in

our clubs and they can become strong for life,” explained Zeitsiff. “But
‘Change is Strong’ also applies to our partners and franchisees. It’s about
giving them new changes, new operating models, and improving our
playbooks as a franchisor.”
Managerial Economics DBA
As more franchisees jump aboard with Gold’s Gym, marketing the continued
success from 2019 and the “Change is Strong” campaign is a key initiative for
the brand in 2020.

“As we continue to add new franchisees, put press releases out about them
and do things to improve the overall knowledge of our brand, it builds our
share of voice,” said Zeitsiff. “We’re getting some more wins in publicizing the
brand and showing people this brand has a ton of relevance.”

Guided by its commitment to delivering results and a revamped domestic

expansion initiative, Gold’s Gym is going to keep winning. “We have always
been based on a legacy of giving people results — that’s been the catalyst for
our overall success,” said Zeitsiff. “As we continue that legacy, I hope this time
next year, you’re asking me about 2020 being our best year ever.”