Cybex International Industry Analysis And Attractiveness Sca ✓ Solved

Cybex International industry analysis and attractiveness scale

Discussion Board #5 Submit a minimum of 100-word answer for each of the following questions: Cybex International is a company that makes premium exercise equipment for home and commercial use. What industry is Cybex in? (Provide both an SIC and NAICS codes.) Report the industry’s past three years of sales, sales growth, and make a prediction for its sales and sales growth for the next year. Is the industry fragmented or concentrated? What are the environmental and business trends working for and against the industry’s future growth? On a scale of 1–10 (10 is high), how attractive of an industry is the industry Cybex participates in for a startup to enter? Explain your answer. Important: You can use the Industry Information Resource provided under Important Information. However, you have to be in the campus for free access.

Paper For Above Instructions

Cybex International operates within the fitness equipment industry, which is characterized by a range of products designed to facilitate exercise and physical training. This sector can be classified under the Standard Industrial Classification (SIC) code 3949, which encompasses “Sporting and Athletic Goods, Not Elsewhere Classified.” In terms of the North American Industry Classification System (NAICS), Cybex falls under code 339920, which refers to “Sporting and Athletic Goods Manufacturing” (U.S. Census Bureau, 2021).

To understand the industry's performance over the past three years, let us examine some key metrics. According to IBISWorld (2023), the sporting goods manufacturing industry generated approximately $8 billion in sales in 2020, followed by sales of $8.5 billion in 2021, reflecting a growth rate of 6.25%. In 2022, the industry's sales reached around $9 billion, indicating an increase of 5.88%. For the upcoming year, we can predict a conservative sales growth of about 4% based on emerging consumer trends emphasizing health and wellness, resulting in estimated sales of $9.36 billion (IBISWorld, 2023).

In analyzing the industry structure, the fitness equipment sector tends to be moderately fragmented. While there are several major players, such as Cybex, Life Fitness, and Nautilus, the market also hosts numerous small and niche manufacturers. This fragmentation is beneficial, as it allows for a variety of consumer preferences and specialization, yet creates intense competition among firms (Market Research Future, 2022).

Numerous environmental and business trends affect the industry's trajectory. Notably, the rising health consciousness among consumers is a significant driver for growth in the fitness equipment market. According to Statista (2023), the global fitness equipment market is projected to reach $15 billion by 2028. However, challenges such as supply chain disruptions and economic fluctuations pose threats to industry stability (Deloitte, 2022).

Evaluating the attractiveness of the fitness equipment industry for new startups, I would rate it a solid 8 out of 10. This high score reflects the industry's growth potential, driven mainly by greater consumer investment in health and fitness technologies, coupled with an increasing trend toward home workouts. Nevertheless, startups must navigate challenges such as competition from established brands and potential market saturation.

In conclusion, Cybex International operates in a dynamic sector marked by evolving consumer preferences and the emergence of new technologies. As long as businesses like Cybex embrace innovation and adapt to market changes, they can capitalize on industry growth while maintaining competitive advantages. In light of these observations, startups entering this industry should proceed with caution but also with optimism regarding future opportunities.

References

  • Deloitte. (2022). The future of the fitness industry: Trends and insights. Retrieved from https://www2.deloitte.com/global/en/pages/consumer-business/articles/the-future-of-the-fitness-industry.html
  • IBISWorld. (2023). Global Sporting Goods Manufacturing Industry Report. Retrieved from https://www.ibisworld.com/industry-statistics/market-size/sporting-goods-manufacturing-united-states/
  • Market Research Future. (2022). Fitness Equipment Market Research Report. Retrieved from https://www.marketresearchfuture.com/reports/fitness-equipment-market-8921
  • Statista. (2023). Fitness Equipment Market Value Worldwide from 2018 to 2028. Retrieved from https://www.statista.com/statistics/1100427/global-fitness-equipment-market-value/
  • U.S. Census Bureau. (2021). North American Industry Classification System. Retrieved from https://www.census.gov/naics/

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