A Case Study: Crossfit Business Venture
Crossfit Business Venture
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BUSN 316
American Military University
Professor Brenda Harper
In the last few years Crossfit has exploded in popularity. With a resurgence in the American population striving for ways to live healthier lifestyles, Crossfit has successfully managed to provide the consumer with a comprehensive workout system that can literally be done anywhere. This allows the consumer the opportunity to get away from the health clubs, which arguably have become more of a social environment, and get a hardcore workout that taps into our primal nature. Not only does Crossfit promote a healthy lifestyle, it has lead to the rise of some new marketing opportunities for companies such …show more content…
In fact, the number of Crossfit affiliate gyms has increased in number from 13 in 2005 to roughly 7,000 in 2014 (Ritter, 2014). That amounts to approximately 776 new gyms per year for the last nine years. Even with the market being flooded with new gyms there is still a high demand for new gyms. The popularity is growing everyday and more people are gaining the exposure and curiosity to see what Crossfit is. This means that the market saturation has yet to be found. No matter how many gyms open their doors they will not have any trouble filling the gym with eager patrons willing to pay a premium for the body-crushing workout that Crossfit offers. On average only roughly 2 percent of Crossfit gyms fail (Ritter, 2014). With a 98 percent success rate, opening a Crossfit gym is as close to a sure bet you can get in the business …show more content…
However, as pointed out earlier with only a 2 percent failure rate, there is still a thriving market despite the competition. For instance there are approximately 177 Crossfit affiliated gyms in the greater Los Angeles area and 116 in New York (Find a Local Crossfit Location, n.d.). With millions of people calling these major cities home there is still a shortage of Crossfit gyms. This means that there is plenty of room in the market for more gyms to get in and capitalize on the consumer’s demand. The truth of the matter is we simply have not seen a reduce in demand regardless of how many gyms are opened and we will probably not see the market fully saturate for years to come.
In conclusion we can see that the rate of growth, market size, and the competition in the Crossfit market is truly in favor of the gym owners. There is a rate of growth that is unparalleled to most other markets these days and the individuals who do Crossfit have almost a cult like following for everything Crossfit. This makes it a perfect business venture. The risk is low and the potential for big revenues is there. It would be tough to find a better venture with a lower risk and an almost guaranteed level of
First last
BUSN 316
American Military University
Professor Brenda Harper
In the last few years Crossfit has exploded in popularity. With a resurgence in the American population striving for ways to live healthier lifestyles, Crossfit has successfully managed to provide the consumer with a comprehensive workout system that can literally be done anywhere. This allows the consumer the opportunity to get away from the health clubs, which arguably have become more of a social environment, and get a hardcore workout that taps into our primal nature. Not only does Crossfit promote a healthy lifestyle, it has lead to the rise of some new marketing opportunities for companies such …show more content…
In fact, the number of Crossfit affiliate gyms has increased in number from 13 in 2005 to roughly 7,000 in 2014 (Ritter, 2014). That amounts to approximately 776 new gyms per year for the last nine years. Even with the market being flooded with new gyms there is still a high demand for new gyms. The popularity is growing everyday and more people are gaining the exposure and curiosity to see what Crossfit is. This means that the market saturation has yet to be found. No matter how many gyms open their doors they will not have any trouble filling the gym with eager patrons willing to pay a premium for the body-crushing workout that Crossfit offers. On average only roughly 2 percent of Crossfit gyms fail (Ritter, 2014). With a 98 percent success rate, opening a Crossfit gym is as close to a sure bet you can get in the business …show more content…
However, as pointed out earlier with only a 2 percent failure rate, there is still a thriving market despite the competition. For instance there are approximately 177 Crossfit affiliated gyms in the greater Los Angeles area and 116 in New York (Find a Local Crossfit Location, n.d.). With millions of people calling these major cities home there is still a shortage of Crossfit gyms. This means that there is plenty of room in the market for more gyms to get in and capitalize on the consumer’s demand. The truth of the matter is we simply have not seen a reduce in demand regardless of how many gyms are opened and we will probably not see the market fully saturate for years to come.
In conclusion we can see that the rate of growth, market size, and the competition in the Crossfit market is truly in favor of the gym owners. There is a rate of growth that is unparalleled to most other markets these days and the individuals who do Crossfit have almost a cult like following for everything Crossfit. This makes it a perfect business venture. The risk is low and the potential for big revenues is there. It would be tough to find a better venture with a lower risk and an almost guaranteed level of