MGT 465 Week 1 Strategy and the Business Concept Example

An Indoor Pickleball Club in Suburban Columbus: Defining the Concept and Strategy for Scioto Courts

[Student Name]

University of Phoenix

MGT/465: Small Business and Entrepreneurial Planning

Week 1 Assignment

[Instructor Name]

[Date]

Scioto Courts Pickleball Club, its founders and all figures are composites written for a model paper.

Megan Kessler and Tom Albrecht, two competitive pickleball players in suburban Columbus, Ohio, spend winters driving 40 minutes to the nearest indoor courts and waiting for open play. Pickleball has grown rapidly across the United States, and outdoor courts in their suburb are crowded from April to October. They plan to open Scioto Courts, a composite indoor pickleball club, in a converted warehouse in Hilliard. Megan has 15 years of experience managing a fitness center, and Tom is an accountant. A good small business concept answers three questions clearly: what it offers, who will pay for it and why those customers will choose it over everything else they could do with their time and money. This paper defines the concept and strategy for Scioto Courts.

The Business Concept

Scioto Courts will offer 10 indoor courts with professional surfaces and lighting, open seven days a week from early morning until late evening. Revenue will come from memberships, open play fees, court reservations, leagues, tournaments, lessons and clinics, youth programs, a pro shop and a small café. The club will occupy about 32,000 square feet.

Mission, Vision and Goals

The mission is to give central Ohio players a year-round home for pickleball where everyone can improve and belong. The vision is to be the region's best-known pickleball community within five years. Three-year goals are 900 members, 80 percent court use during peak hours and an operating profit of at least 12 percent of revenue.

The Founders' Goals

Hurst and Pugsley (2011) found that most small business owners do not intend to grow large or innovate and that nonfinancial motives such as flexibility and doing what they enjoy are important. Megan and Tom want a profitable club they run themselves, not a chain, which shapes the strategy toward community and quality rather than rapid expansion.

Target Customers

Three segments matter most. Adults over 50, the core of pickleball's early growth, play often and value community and daytime hours. Young professionals play in evening leagues and social events. Youth programs serve families and schools seeking new activities. A fourth segment, corporate groups, can book team events.

Evidence of Demand

Local parks report waiting lists for outdoor court reservations, and three local Facebook groups have more than 6,000 members combined. A survey of 340 players at outdoor courts found that 58 percent would consider a monthly membership at $79 to $99 for indoor play in winter, though surveys tend to overstate behavior.

Competitors

Competitors include free public parks, which are strongest in summer; two racquet clubs that converted tennis courts to pickleball on certain nights; a franchise indoor pickleball facility opening across town; and other leisure options such as gyms and golf simulators. The franchise is the most direct competitor.

Industry Forces

Porter (1985) described competitive forces that shape profitability. Rivalry is increasing as indoor facilities open; buyers can choose free outdoor courts in good weather; substitutes include other sports and fitness; new entrants face moderate barriers of space and capital; suppliers of court surfaces and equipment are many. The industry is attractive in winter and competitive in summer.

Choosing a Strategy

Porter's generic strategies include cost leadership, differentiation and focus. Scioto Courts cannot be the cheapest option, since public courts are free. It will pursue focused differentiation: a community-centered club for intermediate and advanced players, with strong leagues, coaching and events, rather than a general facility for every casual player.

What Differentiates the Club

Differentiation comes from leagues organized by skill rating, coaching by certified instructors, social events that build friendships, a café where players stay after games and a members-first booking system that guarantees court time. These elements reinforce one another: leagues create regulars, regulars use the café and social events keep members from leaving.

Resources That Support the Strategy

Teece (2010) argued that business models create advantage when parts are hard for competitors to copy. Scioto Courts' hard-to-copy resources include Megan's experience running a fitness business, the founders' standing in the local pickleball community and the relationships they will build with league players. A franchise can copy courts but not a community.

Pricing Within the Strategy

Pricing must fit focused differentiation. Monthly memberships will be $89, with a $69 rate for players who use only weekday daytime hours, which suits many retirees and spreads demand. Non-members will pay $15 for open play sessions, enough to make membership attractive for anyone playing more than five times a month. Leagues will cost $60 to $90 per season and lessons $40 to $70. Prices sit slightly above the franchise's announced rates, justified by guaranteed court time and organized leagues, but not so high that the club becomes exclusive.

Location Choice

Hilliard sits near three fast-growing suburbs and two highways, with warehouse space available at lower rents than retail locations. About 210,000 people live within a 15-minute drive. The site has parking for 120 cars, essential for league nights. Its weakness is visibility from main roads, which marketing must overcome.

Summer Strategy

Summer demand drops as players move outdoors. The club will offer summer leagues in air conditioning, youth camps, tournaments and lower summer membership rates, and will host corporate events. Megan expects revenue to fall about 25 percent in summer, which the financial plan must reflect.

Testing the Concept

Before signing a lease, the founders will run a four-weekend winter pop-up in a rented gym with temporary courts, charging drop-in fees and offering early memberships. The goal is 150 paid founding memberships, which would confirm demand at the planned price.

Key Risks

Risks include faster-than-expected competition, slowing growth in pickleball interest, high lease costs and the summer slump. The plan's later sections will address each.

Next Sections of the Plan

The marketing plan will detail how to attract and keep members, the operations plan will cover the facility, staff and scheduling and the financial plan will estimate startup costs, capital needs and profitability.

Conclusion

Scioto Courts is a focused, community-centered indoor pickleball club serving intermediate and advanced players in suburban Columbus. Its strategy fits the founders' experience and goals and relies on resources competitors cannot easily copy. A pop-up test will confirm demand before the founders commit to a lease.

References

Hurst, E., & Pugsley, B. W. (2011). What do small businesses do? Brookings Papers on Economic Activity, 2011(2), 73-142. https://doi.org/10.1353/eca.2011.0017

Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.

Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2-3), 172-194. https://doi.org/10.1016/j.lrp.2009.07.003