Case Study: Gli Sport Real Estate

Executive Summary

This case study examines the development of Gli Sport, an Australian Real Estate Investment Trust (A-REIT) specialising in multipurpose sports facilities. By leveraging innovative construction techniques and a unique operational business model, Gli Sport maximises financial returns on commercial real estate while revitalising underutilised sports like squash through flexible, multi-use venues.

The strategy addresses declining participation in traditional sports by offering time-efficient training, social engagement, and community-driven experiences. Gli Sport’s core competencies—its operational model and construction innovation—provide a sustainable competitive advantage in the sports and recreation sector.

Introduction

The Problem: Declining Sports Participation

Squash, once a popular sport, has seen participation decline due to shifting demographics and outdated facilities. Gli Sport’s solution:

• Modernise facilities with adaptable designs.
• Expand offerings beyond squash to attract diverse users.
• Enhance engagement through social and fitness-driven experiences.

 

Business Model & Market Opportunity

Gli Sport operates in the sport and recreation sector, offering:

1. Time-efficient sports/training (e.g., 60-minute sessions).
2. Social engagement & community belonging (countering digital isolation).
3. Innovative facility design (removable walls, multi-purpose courts).

This model optimises commercial real estate returns by increasing facility utilisation and attracting broader demographics.

Strategic Analysis

Section A: SWOT Analysis

Strengths	Weaknesses
✔ Property ownership	✖ Outdated facilities
✔ Innovative construction	✖ Negative market perception of squash
✔ Strong community engagement	✖ High initial investment
Opportunities	Threats
✔ Flexible facility use	✔ Competition from council-run facilities
✔ Diversified revenue streams (e.g., events, allied health)	✔ Economic downturns reduce discretionary spending
✔ Rising demand for time-efficient fitness	✔ Reluctance to adopt new sports formats

 

Section B: Core Competencies

1. Operational Business Model

Gli Sport’s success hinges on three pillars:

• a) Sport-Specific Strength & Conditioning
  • Targets athletes (AFL, basketball, tennis) with specialised training.
  • Staff are ex-athletes with Cert IV in Strength & Conditioning, ensuring expertise.
  • Focus on injury prevention and high-intensity training (Gambetta, 2007).
• b) Social Engagement & Belonging
  • Counters digital isolation by fostering community interaction.
  • Facilities are designed for a positive atmosphere (clean, vibrant spaces).
  • Staff trained in customer engagement (Deci & Ryan, 2010).
• c) Time-Efficient Sports
  • 60-minute sessions cater to busy professionals.
  • Flexible league structures (6–8-week seasons) maintain engagement.

 

2. Innovative Construction

• Removable walls (fibre-resin boards) enable multi-sport configurations.
• Sprung timber flooring reduces injury risk vs. hard surfaces.
• Low-maintenance materials cut long-term costs.

 

Section C: Competitive Differentiation in Real Estate

Gli Sport’s differential strategy includes:

• Maximising ROI on commercial spaces via high-utilisation models.
• First-mover advantage in Australia for modular sports facilities.
• Diversified revenue: sports, events, allied health services (yoga, physio).

 

Real Estate Market Trends Supporting Gli Sport:

• Declining retail demand → repurposing commercial spaces.
• Investors are shifting to mixed-use properties (Berry, 2019).

 

Section D: Management & Implementation

• Agile leadership ensures adaptation to market shifts.
• Monthly staff strategy sessions align operations with goals.
• R&D focus sustains innovation in facility design.

 

Section E: Conclusion & Evaluation

Gli Sport’s core competencies—operational agility and construction innovation—create long-term competitive advantages:

1. Hard-to-replicate business model.
2. Community-driven value proposition.
3. Scalability across urban and regional markets.

 

Key Takeaways for Broader Industries:

• Invest in core capabilities that align with market gaps.
• Leverage real estate creatively to enhance asset value.
• Prioritise customer experience to drive retention.

 

Future Recommendations:

• Expand into e-sports integration for hybrid audiences.
• Partner with local governments for subsidised community access.

 

References

ASB, (2019). Movable sidewall. Retrieved from HTTP:// www.asbsquash.com

ASB, (2019). The multi-purpose LED-lit squash court! Retrieved from http:// www.asbsquash.com

Australian Leisure Management. (2015). Study finds dirty gyms are turning away members. Retrieved from http:// www.ausleisure.com.au

Barney, J. B. (1986). Strategic factor markets: Expectations, luck, and business strategy. Management science, 32(10), 1231-1241.

Bartholomew, K. J., Ntoumanis, N., & Th⊘ gersen-Ntoumani, C. (2009). A review of controlling motivational strategies from a self-determination theory perspective: Implications for sports coaches. International Review of Sport and Exercise Psychology, 2(2), 215-233.

Basu, C. (2019). What core competencies give an organisation a competitive advantage? Retrieved from http://www.smallbusiness.chron.com

Berry, G. (2019). Popular office and industrial property trusts are losing their shine. Retrieved from http://www.smh.com.au

Boreham, T. (2018). Predictive building maintenance saves costs, time. Retrieved from http: //www.smh.com.au

Bullen, C. V., & Rockart, J. F. (1981). A primer on critical success factors.

Chelladurai, P., & Chang, K. (2000). Targets and standards of quality in sport services. Sport Management Review, 3(1), 1-22.

Choi, P. (2019). Training for speed and power with limited space and/or equipment. Retrieved from http://www.athletesacceleration.com

Conisbee, N. (2019). What to expect in the commercial property market for 2019. Retrieved from http://www.realcommercial.com.au

Covaris. (2019). Are you running high-cost reactive maintenance? Retrieved from http://www.covaris.com.au

Coyle, E. F. (2005). Very intense exercise training is extremely potent and time-efficient: a reminder. Journal of Applied Physiology, 98(6), 1983-1984.

Deci, E. L., & Ryan, R. M. (2010). Intrinsic motivation. The corsini encyclopedia of psychology, 1-2.

Dellea, D. (2018). Sports industry: lost in translation? Retrieved from: http www.pwc.ch/sportsPwC Sports Survey-2018_web

Department of Local Government, sport and cultural industries. (2019) More than winning- The real value of sport and Recreation in Western Australia. Retrieved from http://www.dsr.wa.gov.au

Duda, J. L. (2005). Motivation in sport. A handbook of competence and motivation, 318, 335.

Dyson, R. G. (2004). Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640.

Foss, N. J., Lando, H., & Thomsen, S. (2000). The Theory of the Firm. In B. Bouckaert, & G. De Geest (Eds.), Encyclopedia of Law and Economics: Volume III. The Regulation of Contracts (1. ed., pp. 631-658). [5610] Cheltenham: Edward Elgar Publishing.

Foss, N. J. (Ed.). (2000). The theory of the firm: Critical perspectives on business and management (Vol. 4). Taylor & Francis.

Gambetta, V. (2007). Athletic development. Champaign, IL: Human Kinetics.

Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California management review, 33(3), 114-135.

Harrison Assessments. (2019). Job-Specific Behavioural Testing and Personality Testing. Retrieved from http://www.harrisonassessments.com

Holmstrom, B. R., & Tirole, J. (1989). The theory of the firm. Handbook of industrial organisation, 1, 61-133.

Jooste, C., & Fourie, B. (2009). The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders. Southern African Business Review, 13(3).

Jordan, L. (2018). Commercial property returns set to fall. Retrieved from http:// wwwaustralianpropertyjournal.com.au

Kak, A., & Sushil, H. (2002). Sustainable competitive advantage with core competence: a review. Global Journal of Flexible Systems Management, 3(4), 23-38.

Kokemuller, N. (2019). Differentiated business Strategies. Retrieved from http://smallbusiness.chron.com

Lang, K. (2017). Toxic parents, you’re ruining sport for kids. Grow up. Retrieved from http://www.couriermail.com.au

Leavy, B. (1994). Two strategic perspectives on the buyer-supplier relationship. Production and Inventory Management Journal, 35(2), 47.

Leonard, D. (1995). Wellsprings of knowledge (p. 65). Boston: Harvard Business School Press.

Lieberman, M. B., & Montgomery, D. B. (1998). First‐mover (dis) advantages: retrospective and link with the resource‐based view. Strategic management journal, 19(12), 1111-1125.

Magretta, J. (2011). Understanding Michael Porter: The essential guide to competition and strategy. Harvard Business Press.

Mahoney, J. T., & Pandian, J. R. (1992). The resource‐based view is within the conversation of strategic management. Strategic management journal, 13(5), 363-380.

Manchester Metropolitan University. (2019) Sports 1 Coach Competencies. Retrieved From http: // www2.mmu.ac.uk

Marino, K. E. (1996). Developing consensus on firm competencies and capabilities. Academy of Management Perspectives, 10(3), 40-51.

Mindtools. (2019). Porter’s value chain. Understand how value is created within an organisation. Retrieved from http://www.mindtools.com

Murray, A. I. (1988). A contingency view of Porter’s “generic strategies”. Academy of Management Review, 13(3), 390-400.

Nourse, H., & Roulac, S. (1993). Linking real estate decisions to corporate strategy. Journal of real estate research, 8(4), 475-494.

Opentextbc (2019). differentiation. Retrieved from http://www.opentexbc.ca

Orthop, J. (2016). The female ACL: Why is it more prone to injury? Retrieved from http://www.ncbi.nlm.nih.gov

Porter, M. E. (1985). “Competitive Advantage”. Ch. 1, pp 11-15. The Free Press. New York

Porter, M. E., & Stern, S. (2001). Innovation: location matters. MIT Sloan Management Review, 42(4), 28.

Porter, M. E. (1989). How competitive forces shape strategy. In Readings in strategic management (pp. 133-143). Palgrave, London.

Porter, M. E. (2008). Competitive strategy: Techniques for analysing industries and competitors. Simon and Schuster.

Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68(3), 79–91. Retrieved from http://search.ebscohost.com.ezproxy.canberra.edu.au/login.aspx?direct=true&db=heh&AN=9006181434

Prahalad, C. K., & Hamel, G. (1997). The core competence of the corporation. In Strategische Unternehmungsplanung/Strategische Unternehmungsführung (pp. 969-987). Physica, Heidelberg.

Pretty, G., Bishop, B., Fisher, A., & Sonn, C. (2007). Psychological sense of community and its relevance to well-being and everyday life in Australia. The Australian Community Psychologist, 19(2), 6-25.

Quain, M. (2019). Simple organisational structure. Retrieved from http://www.smallbusiness.chron.com

Root, N. (2019). Motivational Strategies in Business. Retrieved from http://www.smallbusiness.chron.com

Samson, R, (2018). The business Strategy of McDonald’s. Retrieved from http://www.profolus.com

Schoemaker, P. J. (1992). How to link strategic vision to core capabilities. Sloan Management Review, 34, 67-67.

Shah, D., Schmierbach, M., Hawkins, J., Espino, R., & Donavan, J. (2002). Nonrecursive models of Internet use and community engagement: Questioning whether time spent online erodes social capital. Journalism & Mass Communication Quarterly, 79(4), 964-987.

Soh, M. (2019). Sport On! How to get people moving through urban design. Retrieved from http:// www.nadi.design

The Economist. (2014). Why is everyone so busy? Retrieved from http:// www.economist.com

The Telegraph (2019). is this the world’s most dangerous gym class? Retrieved from http:// www.telegragh.co.uk

University of Cambridge (2019). Porter’s Generic Competitive Strategies (ways of competing). Retrieved from http://www.ifm.eng.cam.ac.uk

Wang, C. Y. P., Jaw, B. S., & Tsai, C. H. C. (2012). Building dynamic strategic capabilities: a human capital perspective. The International Journal of Human Resource Management, 23(6), 1129-1157.

Wiklund, J., & Shepherd, D. (2003). Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses. Strategic management journal, 24(13), 1307-1314.

Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource-based view of the firm. Journal of Management, 27(6), 701-721.

 

(See original document for full citations.)

 

Appendices

• Financial projections for Gli Sport facilities.
• Case studies of similar international models.

 

Final Note: This white paper demonstrates how strategic innovation in sports real estate can unlock new revenue streams while fostering community resilience and access. Gli Sport’s model is a blueprint for the future of adaptive sports infrastructure.