Transition health club's strategic partnership with Ambassador Hotels

¶ … Ambassador hotels proposition has both its advantages and disadvantages.

Pros

Ambassador was internationally well-respected

Working with Ambassador would likely expand Transition's reach as well as its target market.

This might be an excellent opportunity for Transition who, due to their expensive prices and target market, is losing their business by growing competitions and cheaper services entering the market.

Transition is also losing their previous average age (41). Trends are changing; their membership has shifted to an average older age 946). Although not necessarily negative, this new opportunity may help them stabilize their prospective client portfolio as well as expanding their demographic range of clients.

Cons

Their main problem was that, although well-respected, Ambassador did not rank first class as other hotel lines such as Printemps and Clarkhouse did. Linking themselves with the Hotel branch may pull down a notch the luster of the name that he hoped to achieve. This may impact their marketing edge.

Gordon was also not sure whether expanding Transition's reach or target market would work and he was concerned that the Printemps management may react adversely to the offer.

Evaluation and recommendation

Although Transition stands out due to its offering a niche service and does not seem to be having major problems as yet, they seem to be finding it increasingly tough to hold onto their niche and sustain their establishment. Their way of running the establishment is expensive with staff-to-member ration being higher than other places and with high-cost facilities as being far from ideal particularly considering the fact that their membership is also aging.

Worst of all, despite their niche, the company seems to be threatened by other companies entering the high-end health club and spa market. It seemed as though clubs offering cheaper, thoguh less superior business, are attracting more clients. Some of these clubs and hotel ranges also seemed to have enviable connections.

For Transition's very survival, therefore, if not for recuperating and expanding their opportunities, it seems that they would do best by joining the Ambassador range. Although, possibly -- and this is not certain -- resulting in losing some of the original luster to their name, they may end up regaining more than they lost, and may use this as a step to gaining even higher ground than previously particularly if they maintain their superiority and reputation of superior offering with impressive results. More so, Ambassador, as has been pointed out, is internationally well-respected. Connection may enable Transition to enter the international market and expand their locations.