Power House Ltd. (PHL) is an indoor cycling studio in Ottawa. It was founded two years ago by Mike Powers, a professional cyclist who wanted to share his passion for the sport of cycling with others.

When Mike founded PHL, he knew that there were a number of indoor cycling or "spin" studios opening across the city. However, Mike didn't want PHL to be like the others. He thought he could differentiate PHL from the trendier studios by focusing on the sport of road racing and developing the athleticism of his customers. Mike has commented, "I wouldn't be caught dead in one of those fad spin studios where you cycle in the dark and do aerobics on your bike while listening to loud, obnoxious music."

Instead, Mike used the expertise he gained as a professional athlete to enhance the experience of his customers, introducing them to the best and most advanced training techniques. PHL's efforts to differentiate itself have been somewhat successful, as it has attracted a loyal group of core customers who refuse to visit other studios in the city. However, Mike's assistant, a former cycling instructor, recently read some online reviews of PHL and noted that a few customers had commented that it was "not as cool as other studios," "boring," and "too old school."

With the popularity of indoor cycling, Mike currently has two studios. Recent market research reports indicate that cycling studios generated 55% more revenue than other types of fitness studios last year. It has also attracted attention from some celebrities who credit indoor cycling as an important part of their fitness regimen, and there is potential for this popularity to grow further.

Unfortunately, Ottawa has started to become saturated with a high number of fitness studios, and differentiation from the competition is becoming more and more important. In addition, some fitness experts have said that indoor cycling is just a trend and will likely soon be replaced with something new.

You, CPA, have been hired by Mike as an external consultant to give advice on the future of the business. Mike is worried about the direction of the company and is considering incorporating new technology (CycleScape) into the PHL cycling experience.

Prepare a SWOT analysis of PHL.