(solution) A local administrative authority allowed a supermarket development to go ahead provid- ing that the

(solution) A local administrative authority allowed a supermarket development to go ahead provid- ing that the

A local administrative authority allowed a supermarket development to go ahead provid- ing that the company concerned built an extension to the authority’s sports centre on an adjoining site. In recent years the sports centre has encountered a growth in competition from local commercial recreational organisations. Simultaneously, the authority has experienced a reduction in its central funding, and has steadily increased its charges for the use of its sports centre facilities. In reviewing its services at the sports centre, the authority has applied the product life cycle (PLC) model. It has identified the stage within the life cycle at which each of its sports cen- tre services is positioned, as follows: Introductory stage Martial arts, with little take up as yet Growth stage Squash playing facilities, which have required capital investment from the authority and on-going maintenance costs of the courts and equipment Demand for the facilities is increasing rapidly Maturity stage Gymnasium facilities, which require little maintenance expense and experience steady demand which generates surplus cash Swimming, which incurs a continual increase in maintenance and water purification costs Decline stage Badminton, with a continual reduction in demand Requirements Recommend how the local authority could market its sports centre services. Comment on the strategic resource allocation implications of each stage of the product life cycle when applied to the sports centre facility. You are NOT required to describe or draw the PLC model. In the light of your answer to parts (a) and (b), and paying particular attention to the increasing competitive threat, recommend what services the authority should offer in the future within its sports centre.