Executive summary The Australian fitness industry is a dynamic and integral part of the economy. The fitness industry has developed considerably over the last two decades, with numerous fitness centre chains commanding key markets across the country. Approximately 2 million Australians are using fitness centre services. The impact of the fitness industry in Australia extends beyond its contribution to the economy. The study centers on the external factors that have direct bearing on the operation of the fitness industry in Australia. The study also explores the industrial economic perspective of the Australian fitness industry. Introduction Overview Australian fitness industry comprises of a broad range of businesses, from undersized gyms and private training studios to big, multinational fitness chains and franchise. The services offered by this industry are also diverse and include a wide range of exercises and physical activity services for all the age brackets, plus customary gym-type activities. In other words, the increased diversity of the Australian fitness industry creates a thin line between the traditional fitness centers and facilities offering miscellaneous specialized services (Australian Bureau of Statistics 2008, P.4-5). Australian fitness industry has minimal barriers to the new entrants and is dominated by small and medium sized entities. Over the last decade, Australia has experienced a massive growth in the fitness industry and significant expansion of the fitness centers. Whereas the growth in the industry has remained solid, it has increasingly been moderated over the recent past. This is attributed to deepening market penetration. The industry has also been experiencing some consolidation due to growth of fitness centers chains. Numerous independent centers have been acquired by larger chains or forced out of the business because of stiff competition (Australian Bureau of Statistics 2008, P. 6; Ma, 2011, P.228). Similar to other service industries, Australia’s fitness industry is characterized by high number of informal or part-time employment. Over 80% of the workers employed in this industry are on casual or part-time basis. The industry offers a wide range of services including yoga, boot camp, Pilates in addition to non fitness services such as massage and related health services (Australian Government 2007, p. 3). Report Purpose The main purpose of this report is to identify political, environmental, economic, social, legal, and technological trends that have a direct influence on the operations of the fitness company. In addition, the report also analyses the main forces that determine the attractiveness of a fitness industry or otherwise the industrial economic perspective of the fitness industry. PEST analysis of Australian fitness industry PEST stands for political, economic, social and technological factors. This analysis assesses the impact of the above factors on the fitness industry in Australia. The results of this analysis can be used in taking advantage of the new opportunities and preparing contingency plans for threats in the industry (Porter 1980, P.3). Political externalities Political factors include legislation governing the operations of fitness industry.These legislations befor