Strategic Planning in the Small Business

Unit 2

HO 2-6 (continued)

prices were competitively high,

they had attracted a prosperous,

young, upscale clientele

and had experienced steady growth.

Courtland Clubs had developed a reputation as the "in" club

among young, professional movers In the early 1980's, Court­

land's management team realized that physical fitness was be­

coming more significantto its Yuppie market than the socialization

factor. They feared that membership might start to dip,

since it

appealed to members who viewed the club from a social

perspective.

In analyzing its environment, Courtland recognized numer­

ous growth opportunities-movement into health clubs,

complete

wi,: ,.qight machines and general workout equipment; move­

ment ito racquetball facilities; and

the installation of an indoor

running track to capitalize on the running boom. Courtland pos­

sessed the staff, land, physical, and financial resources to cap­

italize on any or all of these areas. However, other clubs were

providing these features and, indeed, it appeared that the last

thing the community needed or could support was another health

and exercise club. Distraught, the firm felt it had responded too

slowly to environmental shifts and new consumer needs and thus,

was stuck in a losing situation.

As Courtland's management team assembled to discuss the

problem, one individual asked, "Is there any way that we can

compete in the health club, racquetball, and running club areas

given the present level of competitive saturation? The answer

was perhaps,

if the Courtland design isunique or special enough

to

attrac, users from existing clubs to its facilities. But, how does

one build such a club?

The answer

lay in the distinctive competency that Courtland

'had so carefully nutured over its twenty-five-year existence­

namely, quality facilities, extra luxuries, and a

competent and

helpful staff that

appeals to the wishes of its unique (and growing)

target market. With this competency in mind, the business now

had clear direction or focus for growth and was able to proceed

and enlarge its offerings.

IDENTIFYING AND DEVELOPING AREAS OF DISTINCTIVE

COMPETENCE

Distinctive competencies

may appear in either of two ways.

First, the competency may be present as part of the firm's

operations. The business operates in such a manner that clear

90 Part
One .The Analysis Phase

232