World Gym is one of America's most reputable fitness organizations. Founded in 1989, World Gym Showcase Square's original strategy was to target a broad market ranging from experienced bodybuilders to novice gym users. The owners established their facilities in high-traffic areas with little competition. When World Gym was founded, there was a strong demand for medium-priced fitness facilities, but only a few existed. World Gym originally set a low price to induce consumers to try its facilities and remain as customers. The strategy was far more successful than the owners anticipated.

In fact, the marketing campaign was so successful that World Gym was able to raise its prices and become a price leader. Soon, however, competitors such as Gold's Gym began to enter the market and located their facilities near World Gym. When World Gym's owners recognized that they were losing customers to the new competitors, they decided to lower membership prices in response.

Thus, World Gym changes its pricing strategy in response to the changing business environment. Today, World Gym has expanded across the United States and into several other countries. It uses its website to promote its services by providing information to potential and existing customers. The website includes a store locator as well as information on prices, fitness classes, and equipment. You can find more information on World Gym at http://www.worldgym.com/.

Questions

1. How did World Gym originally market its products to potential gym customers?

2. How has World Gym used its pricing strategy to lure customers from competing fitness facilities?

3. How has World Gym responded to competition and changes in the market environment?