In 1991, the U.S. medical bill was $738 million, of which businesses paid 30 percent. Recent studies indicate returns on investments in wellness programs for various companies ranging from $1.91:1 to $5.78:1. General Electric's aircraft engines division, for example, saves $1 million per year through its wellness programs. Traveler's Insurance Company reported savings of $7.8 million in 1991, attributable to its wellness programs, and a return of $3.41 for every dollar invested in wellness.
Important demographic changes are taking place in America that point to the importance of worker productivity in coming decades.
The market for corporate fitness is not particularly segmented, as potential customers include all downtown businesses that offer their employees some type of medical benefits, are experiencing escalating health care costs, and wish to more effectively manage those costs.
Corporate Fitness, however, segments its services for individual organizations. Corporate Fitness works with senior management to develop mission statements and provide incentive plans, and with employees to design personalized health and fitness programs.
Several small fitness facilities are currently in operation in the downtown area, none of which cater their services to corporations. These organizations are primarily exercise facilities with little emphasis on personalizing individual plans to improve working performance.
The three main competitors for Corporate Fitness are:
Few fitness centers are located in the downtown Seattle area, while the majority are found in suburban neighborhoods and shopping complexes. Those in the downtown area are located close to professional centers containing restaurants, parks, and other recreational activities. In suburban locales, these establishments are often found close to grocery stores, restaurants, and retail stores.
Participants in the fitness industry include national, regional, and local organizations. On the national level, companies such as Gold's Gym and the YMCA offer exercise facilities and training programs. At the regional level, firms such as Better Bodies and Bally's offer comparable services, while locally, privately-owned businesses provide similar, but less extensive services to exercise-seekers.