24 Hour Fitness (B): Ownership Changes, 2005-2016 Case Solution
This is just an excerpt. This case is about STRATEGY & EXECUTION
PUBLICATION DATE: October 13, 2016
In 2016, 24 Hour Fitness was the number-two fitness chain in the United States, creating incomes of $1.4 billion from 441 clubs serving 3.8 million members. Based in San Ramon, California, 24 Hour Fitness ran clubs in 13 states. Throughout, 24 Hour Fitness had actually maintained its standard positioning, using numerous club types to please a large variety of clients focused in a specific location at budget-friendly rates balancing $39 per month. Little studios providing focused centers at as little as $10 per month were growing, while LA Fitness offered full-line health clubs for a standard of $33 per month. Premium clubs likewise continued to thrive, while the competitors from not-for-profits such as university and staff member fitness centers continued unabated. In 2016, the brand-new CEO revealed a brand-new technique to counter these difficulties: rebranding 24 Hour as a way of life and media business.
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