A Case Study: Crossfit Business Venture
Crossfit Business Venture
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…
as Reebok, who offer a whole line of Crossfit apparel and equipment companies such as Rogue. With such an increase in demand and the opportunity to generate huge revenues, opening a Crossfit gym would be a promising and lucrative business venture. This paper will outline the business plan for opening such a gym, to include the rate of growth, market size, and number of competitors in the market.
Recent surveys show that the popularity of Crossfit has increased dramatically in recent years.
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…
world.
With the rate of growth expanding at an incredible rate, the market size of Crossfit is also staggering. In 2014, 209,585 would be Crossfitters signed up for the Crossfit Open, which essentially is a 5-week competition to qualify for the annual Crossfit Games. To put this statistic in perspective about 36,000 people sign up for the Boston Marathon and roughly 50,000 runners took park in Walt Disney’s Marathon Weekend (Achauer, 2014). All be it all the competitors that sign up for the Crossfit Open are not at a singular location, they do however greatly outnumber the participants for any other singular event in The United States. With a massive market already established, Crossfit is still expanding. Taking a look back to 2011 when the first Crossfit Open was held, there was a mere 26,000 participants. The next year the number increased to 69,370 and the following year in 2013 there were 138,619 participants (Achauer, 2014). This is an astonishing rate of growth that is unmatched by any other fitness based company or product on the market today and yet these numbers do not take into account the people that did not sign up for the Crossfit Open.
With such a huge consumer market and massive amounts of profits on the line, there will undoubtedly be competition in the market.
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
success.
References
Achauer, H. (2014, March 26). 209,585: Rise of the Open. CrossFit Games. Retrieved September 14, 2014, from http://games.crossfit.com/article/209585-rise-open
Find a Local CrossFit Location. (n.d.). Official CrossFit Affiliate Gym Locator. Retrieved September 14, 2014, from http://map.crossfit.com
Ritter, E. (2014, January 22). By The Numbers: The Growth of CrossFit. The Consumer Sentiment Analysis Experts. Retrieved September 14, 2014, from http://www.channelsignal.com/fresh-signals/by-the-numbers-the-growth-of-crossfit
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…
as Reebok, who offer a whole line of Crossfit apparel and equipment companies such as Rogue. With such an increase in demand and the opportunity to generate huge revenues, opening a Crossfit gym would be a promising and lucrative business venture. This paper will outline the business plan for opening such a gym, to include the rate of growth, market size, and number of competitors in the market.
Recent surveys show that the popularity of Crossfit has increased dramatically in recent years.
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…
world.
With the rate of growth expanding at an incredible rate, the market size of Crossfit is also staggering. In 2014, 209,585 would be Crossfitters signed up for the Crossfit Open, which essentially is a 5-week competition to qualify for the annual Crossfit Games. To put this statistic in perspective about 36,000 people sign up for the Boston Marathon and roughly 50,000 runners took park in Walt Disney’s Marathon Weekend (Achauer, 2014). All be it all the competitors that sign up for the Crossfit Open are not at a singular location, they do however greatly outnumber the participants for any other singular event in The United States. With a massive market already established, Crossfit is still expanding. Taking a look back to 2011 when the first Crossfit Open was held, there was a mere 26,000 participants. The next year the number increased to 69,370 and the following year in 2013 there were 138,619 participants (Achauer, 2014). This is an astonishing rate of growth that is unmatched by any other fitness based company or product on the market today and yet these numbers do not take into account the people that did not sign up for the Crossfit Open.
With such a huge consumer market and massive amounts of profits on the line, there will undoubtedly be competition in the market.
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
success.
References
Achauer, H. (2014, March 26). 209,585: Rise of the Open. CrossFit Games. Retrieved September 14, 2014, from http://games.crossfit.com/article/209585-rise-open
Find a Local CrossFit Location. (n.d.). Official CrossFit Affiliate Gym Locator. Retrieved September 14, 2014, from http://map.crossfit.com
Ritter, E. (2014, January 22). By The Numbers: The Growth of CrossFit. The Consumer Sentiment Analysis Experts. Retrieved September 14, 2014, from http://www.channelsignal.com/fresh-signals/by-the-numbers-the-growth-of-crossfit