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P.E.S.T. Analysis

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

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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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