In the last decade, the global fitness industry revenues have grown at a compound annual growth rate of 3%. In the US, this figure was 6%. By 2018, there were over 180m global health club memberships, and over 60m in the US. Global revenue industry-wide totalled $94bn in 2019 - and this growth is expected to continue once trends normalise and gyms reopen as coronavirus lockdown measures lift around the world. Feel Good Fitness Inc. is a gym/ fitness company that was founded in the early '90s by Dover NH and is based in the Oshkosh area in Wisconsin, USA. It is known for its affordable membership rates, perceived customer benefits, and to provide a "judgment-free environment" for everyone to feel at home and free when working out. By making fitness more accessible to all and encouraging heathier eating, the company improves life expectancy and quality, thereby creating a positive impact. While the low monthly membership fee is a source of competitive advantage, members don't have access to other gym facilities locations and to group exercises with such low rates. Moreover, rates tend to be higher during the summer season due to high seasonal demand. New products are regularly introduced by Feel Good Fitness to increase demand from existing and new customers. For example, special deals are sealed with local colleges to offer college students gym memberships that are -however- included in their college tuition. Feel Good Fitness focuses on generating economies of scale and uses the services of multiple suppliers to build a more efficient supply chain as well as a larger customer base. The company uses state-of-the-art equipment and offers a stelar customer service experience. YMCA is viewed as the main competitor of Feel Good Fitness but charges higher prices. Feel Good Fitness is likely to emerge from the current coronavirus-induced downturn stronger than before. That's because the fitness industry has proven resilient during recessionary periods in the past, recording revenue growth of 2% in the US during the Great Recession in 2008-2009, as people tend to exercise when they are out of employment or suffering from increased stress levels. What's more, in 2017, Feel Good Fitness was forced to close 11 gyms for up to six months owing to the impact of Hurricane Maria. During that period, members were not charged, the company had few cancellations, and, within 12 months, these locations had generated higher monthly revenues than before they closed. During the current period of uncertainty, the group could also benefit thanks to its attractive pricing as other gym-goers may look to trade-down. Feel Good Fitness also moved quickly to freeze memberships when lockdowns were enforced, which should help it to retain its members. Feel Good Fitness is well-positioned to benefit from any material dislocation in the fitness space as a result of Covid-19. While the virus creates a headwind for all gyms, businesses lacking strong cash balances may be forced to shutter their doors permanently. In turn, this could present opportunities for Feel Good Fitness: its franchises could acquire more stores and, should its membership model resonate with value-oriented consumers, gym-goers could look to trade-down from boutique and high-end gyms. Indeed, this could help Feel Good Fitness increase its market share substantially from its current level of 22% to close to 30% in the next few years. Feel Good Fitness focuses on demographics aged 15-44 years living in the Oshkosh area where several high schools, colleges, and big businesses are based. The target population represents 50% out of a total population of 66K. Feel Good Fitness does not offer outdoor activities but plans on introducing indoor yoga and biking activities. The product mix focused on providing gym extras like various drinks for an extra cost while direct competitors had this feature included for free in their benefits. Feel Good Fitness adopted various advertising channels for marketing purpose to makes wareness such as tv, radio, social media marketing and other cheaper ways to target the younger audience like free flyers, pens, t-shirts, and Friday events. This helped reach a large audience while keeping advertising costs low. However, the target population is not segmented by gender, income, occupation, attitudes, beliefs, and interests. Feel Good Fitness Ine's marketing and distribution networks help in reaching out to more customers and ensure greater revenues as promotion activities translate into sales. Competitors would require a lot of investments and time to come up with a better distribution network than that of Feel Good Fitness Inc which has been developed over the years. Competitors would have to invest a significant amount of money if they are to imitate a similar distribution system. The latter is also possessed by very few firms in the industry. A significant portion of Feel Good Fitness workforce is highly trained, and this leads to a higher output for the organisation. The employees are also loyal, and retention levels are high. The better compensation and work environment ensure that employees do not leave for other firms. Patents are an important resource as these allow the firm to sell its products through franchises without competitive interference. These patents are not easily available and are not possessed by competitors which cannot imitate Feel Good Fitness expansion strategy. The company's investments in research and development, while not generating any breakthrough or notable innovations recently, contribute to the firm's high-cost structure and does not generate substantial benefits presently. Finally, despite limited financial resources, the company uses them in ways that capture value for the firm.

Question is: Conduct a VRIO analysis to assess and evaluate Feel Good Fitness Inc.'s resources and determine the sustainability of its competitive advantage.