Free Marketing Dissertations - This Is Not Only Because Of The Fact That The Oxygen Bar Is One Of Its Kind
This is not only because of the fact that the Oxygen Bar is one of its kind that is a new entrant in the leisure industry of London but also because of the high level of investment involved with the setting-up of the bar which would discourage most of the customers in the target market. Furthermore, it is also interesting to note that since the oxygen bar is targeted in the leisure industry, a new entrant in any other segment of the leisure industry might have a direct impact on the market share of the Oxygen bar as argued by Chul Mo Koo and Chang Koh (2004). This is not only because of the increase in the competitors in the leisure industry but also because of the rapid rate at which the customers tend to change their mind with regards to a certain for of leisure and their continuous demand for new products in the leisure market. From the above arguments it is thus clear that the threat of a new entrant in the oxygen bar business is insignificant because of the investment involved and the technical demands of the business itself whilst the threat of a new entrant in the leisure industry as a whole entity is high.
The competitive rivalry on the other hand is an interesting element to be discussed as argued by Richard Lynch (2003) who argues that the development a new venture in any segment of the business faces competitive rivalry from the existing competitors who are not necessarily involved in the same form of the business. In the light of the above statement the competitive rivalry for the oxygen bar is high due to the intense competition among the competitors of the leisure industry in the London area. The fact that London has seen a tremendous growth in the leisure centres and fitness centres in the past two years alone as argued by Richard Lynch and Kazem Chaharbaghi (1999) who say that the leisure industry in the UK has seen growth at an exponential rate since the dawn of the twenty-first century. Alongside, it is also essential to see the extent of competitive rivalry within the market for oxygen bar business mainly because of the fact that the demand for new forms of leisure will increase the number of players in any given business venture within a short period of time as argued by Luciono Aznolni and Anshuman Kare (2004). This is not only because of the increased level of participation by the players in the industry but also because of the ability to generate the capital for the investment in a new business venture as argued by Luciono Aznolni and Anshuman Kare (2004). Thus from the above arguments it is clear that the competitive rivalry is not significant for the setting-up of the oxygen bar whilst it will gain intensity in due course with the increase in new entrants.
The threat of substitutes on the other hand is the most critical element that needs attention. This is mainly because of the fact that the substitute products in the target market (i.e.
