Gym SWOT Analysis: Benefits and Step-by-Step Guide (2025)

Content

Have you heard about SWOT analysis in your marketing studies? Or maybe someone once told you how simple and necessary it is? But have you never looked at your gym business this way? Do you know why you don’t sell as many gym memberships, fitness classes or wellness programs as you’d like to? What is wrong?

Read our article, learn to perform a gym SWOT analysis itself, but also how to react based on the findings. Grow your gym business thanks to a SWOT analysis and find out that it’s worth it!

For gym business, like any other business, SWOT analysis is essential.

Key Takeaways

What is SWOT Analysis?

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. It’s a strategic planning tool used by companies, including gyms, to assess internal and external factors that can affect business performance.

Gym SWOT analysis is about internal and external factors.

Why Conduct a SWOT Analysis for Your Gym?

The purpose of performing a SWOT analysis in a gym context is to focus on optimizing operations, identifying areas for improvement, and leveraging opportunities for growth. SWOT helps gym owners and managers make informed decisions, allocate resources effectively, and maintain competitive advantages.

Only the owner or manager of fitness facilities see all the company’s weaknesses opportunities and threats.

Understanding the Components of SWOT

We are going to provide you now with a breakdown of each letter in the SWOT acronym. You’ll meet not only the definition but also real-world examples from the fitness industry. 

1. Strengths

Gym’s strengths are internal factors that give the gym a competitive edge. Those can be loyal customer base, modern equipment, skilled trainers, or prime gym’s location. 

If your offer includes high intensity interval training (HIIT) and the customers seek for that, then the offer is one of your gym’s strengths. 

In the picture below we present the Fontainebleau Hotel Gym interior. In that case, their “letter S” is the picturesque location.

Location and views matter in gym business and Fontainebleau Hotel Gym knows that. Source: outsideonline.com

2. Weaknesses

Internal factors that limit the gym’s performance (e.g., outdated equipment, poor customer service, limited class variety).

Jesse James West Ranks Commercial Gyms in America – their customer service among others.

Lack of specialized fitness classes is definitely a gym’s weakness in times when customers like to have a large selection in one place. We can say the same about omitting virtual classes and online training sessions in a gym’s offer. In today’s dynamic fitness industry, the businesses attract customers thanks to variety.

3. Opportunities

External factors that the gym can capitalize on to grow or improve (e.g., market trends like virtual fitness, emerging customer needs).

As you can see, the weaknesses may become opportunities, you just need to be a good observer and react actively. Isn’t that cool?

Look at the example of Sitaras Fitness (picture below). The founder has developed his own method: digital support of reaching fitness goals, using the trend of technology entering fitness. The prices of these unusual training sessions are not low, yet still not everyone can sign up for their gym. You have to submit an application and wait for a response. This is one of the luxury gyms we wrote about in our other article. It’s worth being creative and active, isn’t it?

Sitaras Fitness knows how to use the technological trend. Source: sitarasinc.com

4. Threats

Letter T represents external challenges that could harm the gym’s operations or market position (e.g., competition, economic downturns, health crises/pandemics). Read more: “Why are gyms going out of business most frequently?”. 

Many fitness facilities closed permanently or temporarily because of covid pandemic.

5. SWOT Analysis Example for the Fitness Industry

You can write down a SWOT analysis as a list of points, but for ease of reading, it is often presented in the form of a table. Now you see how you can show and look at your gym’s strengths, weaknesses, opportunities, and threats.

Internal Factors

Strengths

Weaknesses

  • A gym located in a busy urban area with high foot traffic
  • Broad and varied offer for fitness enthusiasts
  • Gym management software as a factor streamlining customer contacts, settlements, and making up classes.

External Factors


Opportunities

Threats

  • New fitness trends people get interested in
  • New technology in the service of fitness – like gym management software
  • A new gym opening nearby with better equipment and lower membership fees
  • Financial crisis, causing that people earn less

Using SWOT Analysis to Optimize Gym Operations

How to utilize the findings from a SWOT analysis to improve gym management and operations, rather than just analyzing the factors? For each component (Strengths, Weaknesses, Opportunities, Threats), we explain what actions can be taken.

SWOT analysis for gym business shows what to do.

1. Leverage Strengths

Maximize advantages, like a strong membership base, by implementing loyalty incentives or a gym referral program

Referral programs in the fitness industry are an idea to leverage strengths. Source: RD1 Fitness Instagram

2. Address Weaknesses

Develop strategies to overcome weaknesses, such as upgrading equipment or improving customer service.

A gym business must undergo changes sometimes and B Defined Fitness knows that. Source: B Defined Fitness Facebook

3. Seize Opportunities

Identify trends or gaps in the market to expand services, like offering online classes or wellness coaching. 

You can also introduce new solutions that help you save your time on paperwork or member management, like gym membership software

Selling gym memberships, fitness classes or personal training services is a lot easier thanks to a gym management software.

4. Prepare for Threats

Stay ahead of potential challenges by monitoring competitors and diversifying your offerings to mitigate risks. Look how much monitoring and comparing occurs in the gym business:

There must be a lot of comparisons to keep up on the fitness market. Source: powerliftingtechnique.com

5. SWOT Analysis Example for the Fitness Industry + Correct Reactions

Strengths

Correct Reaction

Weaknesses

Correct Reaction

  • A gym located in a busy urban area with high foot traffic.
  • Broad and varied offer for fitness enthusiasts.

Highlight these positive traits in your gym advertisement campaigns and in every material, e.g. leaflets.

Low retention rates

Implementing customer feedback (get example questions to ask gym members) and improving member engagement strategies 


Opportunities

Correct Reaction

Threats

Correct Reaction

New fitness trends people get interested in 


Gym manager software as an opportunity to reduce paperwork and improve communication

Learn new things and implement them


Improve member experience and operational efficiency by adopting a comprehensive gym management system.

Economic downturn 

Diversifying income streams (e.g., offering online subscriptions) can protect against financial vulnerability

Real-world Example

A gym may decide to prioritize marketing strategies (opportunity) to attract new members after identifying that local competition has lower fees (threat). They could also invest in technology (strength) to enhance member engagement.

Wait a moment… Have we just said that a Gym Management Software can be both  Strength or Opportunity? Well, indeed 🙂

  • If already implemented (Strength): Having software helps streamline operations, from member management and class scheduling to payments and performance tracking. It’s a strength that enables gym automation, enhances efficiency, customer satisfaction, and financial transparency.
  • If considering implementation (Opportunity): The benefits of adopting gym management software as an opportunity to modernize, optimize, and scale the business. Features such as automating gym billing software, performance tracking, marketing tools, and member retention features can position a gym to thrive in a competitive market.
Gym management software

Manage your gym
like a pro

Get more online bookings and increase your gym profit

Practical Steps After Conducting the SWOT Analysis

We will provide actionable steps for gym owners and managers after they’ve completed their SWOT analysis. This is where insights should be turned into action by:

  • Setting clear goals for strengthening weaknesses.
  • Identifying specific opportunities to pursue in the coming year.
  • Developing a plan to counteract threats.
  • Reinforcing and building on existing strengths.

Align Your Gym's Strategy with SWOT Findings

Conducting regular SWOT analyses can help gym owners stay proactive, stay competitive, and continuously improve their business. 

SWOT isn’t just a one-time exercise but a continuous cycle that feeds into better business practices.

FAQ

A SWOT analysis in the gym industry identifies the Strengths, Weaknesses, Opportunities, and Threats of a gym business. It helps businesses assess internal capabilities and external factors to develop effective strategies for growth and improvement.

A SWOT analysis for a gym business helps identify its strengths, weaknesses, opportunities, and threats, guiding decisions on improving operations, attracting clients, and staying competitive.

In the gym business, a SWOT analysis helps identify key factors that can influence success. Strengths could include having experienced trainers, high-quality equipment, and a strong brand reputation, which attract and retain members. Weaknesses might involve issues like limited space, high membership turnover, or a less-than-ideal location, which could hinder growth or member satisfaction. Opportunities include expanding to new locations, offering online classes, or partnering with health-related brands to reach a wider audience. On the other hand, threats might arise from competitors offering lower prices, economic downturns that reduce memberships, or seasonal fluctuations that affect demand.

Related Articles

Share this article

Download free Ebook: Booking classes optimizer

We will send the materials to your email

*Only for gym owners!