Modern day society dictates that an individual’s appearance and image are becoming evermore important. Working within a industry that is estimated to be worth in excess of £2bn in 2004, LA Fitness has to look at varying ways to attract some of the 93% of the UK population that are not currently members of health and fitness clubs. Increased competition and alternative methods of health care mean that individual operators within the industry have to become more flexible and resilient in order to be able to identify key sources of opportunity that can be built upon in order to both consolidate their market positions as well as sustain industry growth patterns.  With market growth levels showing signs of slowing down over the next few years due to the market becoming more saturated, how will LA Fitness maintain and improve its market position in the future? This report will attempt to answer this question by critically evaluating the internal and external factors that affect the operational performance of the company. In attempting to answer the question the report will look at the history, company structure, the strategic capabilities, the core competencies and the competitive position of LA Fitness within the UK health and fitness industry. Building upon this knowledge and information the report will then make recommendations as to how LA Fitness can change and move forward to achieve further growth and success.