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The Success of Crossfit and Its Implications for Businesses of All Types

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The Success of Crossfit and Its Implications for Businesses of All Types University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Supervised Undergraduate Student Research Chancellor’s Honors Program Projects and Creative Work 5-2017 The Success of CrossFit and Its Implications for Businesses of All Types Sarah Gomillion [email protected] Follow this and additional works at: https://trace.tennessee.edu/utk_chanhonoproj Part of the Business Commons, and the Sports Sciences Commons Recommended Citation Gomillion, Sarah, "The Success of CrossFit and Its Implications for Businesses of All Types" (2017). Chancellor’s Honors Program Projects. https://trace.tennessee.edu/utk_chanhonoproj/2054 This Dissertation/Thesis is brought to you for free and open access by the Supervised Undergraduate Student Research and Creative Work at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Chancellor’s Honors Program Projects by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. The Success of CrossFit and Its Implicaons for Businesses of All Types Sarah Gomillion Chancellor’s Honors Thesis Faculty Advisor: Dr. Mark Collins 1 TABLE OF CONTENTS Introduc"on #################################..######3 CrossFit 101 #############..#####################..###.3-4 (usiness Model############################.########..4-5 Value Proposi"on####################################5-7 Strate.y #############################..###########.7-8 Customers#######################################.8-10 Social Media###################################.##10-1 0mpo1erment################################..###.1 -14 Partnerships#####################################.14-12 Cri"cism#################################..######12-18 Intervie1s#############..################.##..######18- 1 Conclusion###########..####################..###### 1- (iblio.raphy################################.##### 3- 4 2 Enlike a tradi"onal .ym, CrossFit boxes are minimalis"c. Many boxes are simply open sFuare Introduction rooms 1ith mirrorless 1alls and concrete Goors. 0Fuipment oHerin.s depend on the size of the box, The Incep"on of CrossFit but most CrossFit spaces consist of a fe1 po1er racks, 8ump ropes, pe. boards, sta"onary bikes, ro1- in. machines, keIlebells, and free 1ei.hts. This is Gre. Glassman, 1ho is other1ise kno1n as strikin.ly diHerent from a tradi"onal .ym that oHers 5Coach6 in the CrossFit community, is the 7tness a plethora of specialized eFuipment for speci7c body phenomenon’s architect. Following a gymnas"cs in- part tar.e"n., The diHerence can be traced to Cross- 8ury in hi.h school that le9 him 1ith a permanent Fit’s dis"nct value proposi"on. CrossFit is adver"sed limp, Glassman became a .ymnast and celebrity 7t- as 5the sport of 7tness6. It’s a trainin. philosophy ness trainer in the 1970s and 80s (author unkno1n, focused on improvin. physical 1ell-bein. and cardi- 013). Durin. the 1990s, he 1ent on to train police ovascular 7tness at all levels throu.h varied, hi.h- o=cers and started developin. the backbone of intensity func"onal movements (Jamb, 01 ). The modern-day CrossFit (Glassman, 015). His 1orkouts idea of func"onal 7tness is that the body doesn’t 1ere deemed loud and disrup"ve, and it took bein. perform one movement or specialty perfectly, but kicked out of 7ve or six .yms for Glassman to decide rather is prepared and successful at performin. to open his o1n .ym in Santa Cruz, California in prac"cally anythin. and everythin. it’s tasked 1ith. 001. In less than 0 years, this one .ym, or 5box6, Therefore, CrossFit pro.rammin. uses aspects of .ave rise to the CrossFit empire. Today, there are over 1 ,000A CrossFit boxes 1orld1ide and the brand .enerates some B4 billion in annual revenue 1ith Glassman as sole o1ner of the company (Czanian, 015). There is much to learn from CrossFit’s suc- cess. In fact, businesses of all types and from all in- dustries could bene7t from imita"n. several key contribu"n. factors. Therefore, the follo1in. paper 1ill focus on iden"fyin. these factors and demon- stra"n. ho1 they can be u"lized in all business seDn.s to foster success. CrossFit 101 The (asics Traditional CrossFit box To be.in to understand CrossFit’s success it’s important to 7rst iden"fy 1hat CrossFit is and ho1 it Image obtained from http://www.insidebusinessnyc.com/crossfit-gym-virtual-tour/ sets itself apart in the 7tness industry. 3 .ymnas"cs, 1ei.htli9in., runnin., ro1in., etc. to a Gold’s Gym franchisor, for example, reFuires a to- test the body’s capabili"es and stretch its limits. In tal investment of B1M-B4M. This he9y fee can in addi"on to these focus areas, intensity is another lar.e part be aIributed to substan"al ini"al lease- inte.ral part of CrossFit’s proposi"on. Cn the com- hold improvements and construc"on costs as 1ell as pany’s 1ebsite, they explain that a key 1ay to test eFuipment and machine reFuirements. the body’s limits is to not only challen.e it 1ith ne1 Another bene7t to the a=liate model is the and varied movements but to maximize the amount level of freedom .iven to box o1ners. Glassman be- of 1ork done in the shortest period of "me. They lieves the a=liate model eliminates everythin. he explain that by employin. a constantly varied ap- 7nds frustra"n. about lar.e .ym franchises and puts proach to trainin., func"onal movements and inten- the po1er in the hands of the a=liate o1ner sity lead to drama"c .ains in 7tness. (Achauer, 012). In an intervie1 discussin. this mod- CrossFit also has its o1n lin.o. Within the CrossFit community, for example, one 1orks out at a 5box6, not a .ym. Another term, 5WCD6, stands for 5Workout of the Day6 and is typically displayed on a lar.e 1hiteboard before the commencement of a class. Certain movements have names as 1ell, such as 5kippin.6, 1hich is a small but po1erful move- ment used to create momentum in a pull-up. T1o other important terms are 5AMRAP6 (as many rounds or reps as possible) and 5Rx’d6, 1hich si.ni- 7es to perform a 1orkout exactly as 1riIen (Myser, 01 ). While seemin.ly trivial, these 1ords and acro- nyms have meanin. for members that create a unify- in. eHect in the CrossFit community. Business Model A=lia"on Cpenin. a CrossFit box is surprisin.ly simple. Must about anyone 1illin. to pay B3,000 annually and aIend a t1o-day seminar can be a box o1ner (Glassman, 01 ). This, of course, does not take into account other ini"al and on.oin. costs such as eFuipment, rent, u"li"es, insurance, etc. that re- Initial investment for a new 25,000 square foot Gold’s Fuire a prospec"ve CrossFit box o1ner to have close Gym facility. to B30J before star"n. hisNher box (DePersio, 015). Image obtained from http://www.franchisedirect.com/fitnessfranchises/ Oet even this amount seems extremely small 1hen golds-gym-franchise-07663/ufoc/ compared to other .ym business models. To become 4 el, Glassman explained that a=liates are in char.e of 7tness scene and rede7ned 1hat it means to be 7t. decidin. ho1 to run their boxesPincludin., but not As previously men"oned, he espouses the idea of limited to, the hours of opera"on, color of the shirts, func"onal 7tness, or preparedness for anythin. and type of music played durin. trainin., decora"ons on everythin.. This contrasts .reatly 1ith tradi"onal the 1alls, and 1hat eFuipment 7lls the space. He measures of 7tness, such as that of Gold’s Gym, that says it’s important to 5remove everythin. bet1een merely encoura.e havin. a certain appearance or you and your success that isn’t essen"al6 (Glassman, bein. able to perform a fe1 movements 1ell. 01 ). The idea of o1ner empo1erment is ar.uably one contribu"n. factor to CrossFit’s success and 1e 1ill spend more "me analyzin. its importance later on. Gold’s Gym advertisement Image obtained from http://www.dhgate.com/product/men-s-muscle-deep-cut-gold-s-gym-tank- tops/188639899.html Glassman’s idea of func"onal 7tness is per- haps best displayed on the CrossFit Games sta.e. The CrossFit Games is an annual compe""on that A glimpse of the number of CrossFit affiliate gyms in has been held in California since 007. Accordin. to different regions. Forbes, the CrossFit Games has become 5one of the fastest .ro1in. sports in America6 (Rishe, 011). In Image obtained from map.crossfit.com. fact, the Games mi.ht be the lar.est athle"c event in the 1orld considerin. t1o hundred and seventy- three thousand people competed in the Cpen (the Value Proposition precursor to the Games) this past February ((o1les, 015). In Glassman’s eyes, the Games serves as the Crea"n. Demand 1orld’s premier test to 7nd 5the FiIest on 0arthQ6. The road to this annual compe""on is a lon. While the a=liate structure is an inte.ral one. The 7rst sta.e is kno1n as the Cpen, 1hich part of CrossFit’s business model, I believe the com- takes place each 1inter and is a 7ve-1eek, 7ve- pany’s uniFue value proposi"on is more central to 1orkout compe""on. Any CrossFit member is eli.i- its success. In many 1ays, Glassman emer.ed on the ble to submit their 1orkout results, provided they 5 are at least 14 years old. The top athletes from each of the 17 re.ions then compete in the next sta.e of compe""onPRe.ionals. Enlike the 7ve-1eek lon. Cpen, Re.ionals is a live, three-day compe""on held in May. A9er combinin. t1o or three re.ions, the top 7ve athletes from each cate.ory (individual men, individual 1omen, teams, masters, and teena.ers) pro.ress to the CrossFit Games. This process 1hiIles do1n the 7eld of several hundred thousand to the top 40 men, 40 1omen, 40 teams, 80 teena.ers, and 0 masters from all over the .lobe.
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