Assignment task:
BISM-Gyms is a Brisbane based and family run business that operates four gyms in the Logan, Chermside, Indooroopilly, and Wynnum areas. Unlike some of the major gymnasiums, it has a focus on youth engagement, with each location being conveniently located near high schools that are renowned for sporting excellence, as well as various elite Netball and Rugby clubs. BISM-Gyms relies on face-to-face attendance, and it has struggled throughout COVID-19 (2020- 2022). This led to a lost opportunity, while health and wellness focus increased attention during the pandemic the gyms were unable to grow their memberships, especially with many having to put memberships on hold during lock-down periods. BISM-Gyms operate all clubs on a 6 AM to 10 AM and 2 PM to 9 PM schedule. This is to ensure a person is always on-site to open and close the gym and manage the safety and risk aspects of the facilities. All BISM-Gyms have a vast range of options available. All gyms offer aerobic classes, weight training and associated classes, and additionally, they have recently invested in Pilates equipment. They all have a great team of personal trainers and exercise physiologists. They are even considering offering massage and physiotherapy services on-site. They are also building relationships with the Brisbane Netball Association and want to offer strength and conditioning facilities to their representative teams. BISM-Gyms has used Porter's Five Forces model to realise that it faces pressure from competitors (some are now operating gyms on a 24/7 basis) and is concerned that its customers might move to online or self-managed alternatives. In response, the firm is considering ways to modernise and expand. BISM-Gyms has focused on 'student' customers but recently the cohort has demonstrated being very socially active and it has been seen that some students are actively seeking alternate engagement with fitness influencers online. BISM-Gyms are keen to leverage this social trend but also want to find ways to expand their business into elite sports clubs and maybe even rehabilitation classes for seniors during the quiet part of the day. BISM-Gyms also recognise that it is not 'digitally ready'. It has not relied on information systems to help operate its business beyond basic club memberships with physical cards, email, and keeping track of finances. The owners are more interested in fitness than in IT. The firm has no centralised database nor is data captured to learn about customers or to support decision-making regarding favourite classes, equipment, and use of personal trainers. There is no way to track customer demographics or behaviour beyond what is learned about customers when using their cards. These issues are all coming to the forefront as the owners want to expand the business but they really can't afford to follow every idea. BISM-Gyms has recruited you as a business analyst. The owners would like advice on different information systems strategies that can help the firm modernise itself and make the most of the demand for its products.
Select two of the below information systems strategies and explain how each can help BISMGyms grow and be more competitive. (i) Basic strategy/align IT with business objectives; (ii) Low-cost leadership; (iii) Product differentiation; (iv) Focus on market niche; (v) Strengthen customer or supplier intimacy. Provide a real-world example 1 for each information systems strategy you identified to show how it is applicable to the case of BISM-Gyms