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P.E.S.T. Analysis

wang-summers avatar
wang-summers
5 diapositives · 190 Views · Nov 12, 2014

This P.E.S.T. analysis examines the key external factors affecting leisure centres, focusing on the political climate that fosters compliance with health and safety regulations, economic challenges posed by rising inflation and reduced disposable income, the social shift towards aging demographics seeking leisure services, and the technological advancements necessary to remain competitive. Understanding these elements enables leisure centres to adapt, optimize staffing, enhance services, and address market demands effectively, ensuring sustainable profitability and growth.

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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.