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P.E.S.T. Analysis

This PEST analysis examines the external factors affecting leisure centres, highlighting political, economic, social, and technological influences. Politically, minimal trade restrictions and government encouragement for workers can lead to increased staffing. Economically, as leisure centres are luxury services, they may face reduced clientele during recessions. Socially, there's a rising demand among older individuals for leisure services. Technologically, maintaining advanced equipment and staff training is vital for competitiveness in the market. Strategies to adapt to these challenges are essential for sustained profitability.

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P.E.S.T. Analysis

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  1. P.E.S.T. Analysis A leisure centre

  2. Political • Very little in the way of trade restrictions/tariffs due to the nature of a health club/leisure centre. • Government is encouraging people to go back to work so it should see an increase in the amount of workers/staff available. • They need to comply with basic health and safety programmes. • They need to comply with all necessary employment law provisions

  3. Economic • Leisure centres are considered luxury products so the number of customers is likely to reduce in times of economic recession where the levels of disposable income are decreasing. • Individuals are not sufficiently wealthy enough to spend large amounts of their income on leisure centres especially in times of rising interest and inflation rates. This will lead to a decline in profitability. • Centres could address this by reducing part-time staff or generating additional revenue by discounts and enhanced services for members/guests.

  4. Social • This area considers demographics such as age, wealth and general interest in health issues. • There is a growing demand from older/retired individuals for leisure services.

  5. Technological • Leisure centres have relatively high barriers to entry by virtue of the level of expertise and technology required. • There is a growing need to ensure that they have the very latest technology to keep abreast of competition and to establish a truly competitive position in the marketplace. • Staff need to be suitably trained to use equipment.

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