SoulCycle

David  Collis; Eric  Van den Steen; Ashley  Hartman

Case | HBS Case Collection | January 2017

SoulCycle

by David Collis, Eric Van den Steen and Ashley Hartman

Abstract

Co-founders Julie Rice and Elizabeth Cutler have grown SoulCycle from a business idea in 2006 to a major presence among urban boutique fitness studios in 2015. In March 2015, fitness company Equinox approaches them with an offer to buy them out. Evaluating the offer requires an assessment of market or industry attractiveness and of SoulCycle's (potential) competitive advantage.

Keywords: SoulCycle; Flywheel; spinning; indoor cycling; boutique fitness; fitness; health clubs; strategy; competitive advantage; community engagement; segmentation; corporate strategy; Expansion; Strategy; Business Strategy; Corporate Strategy; Expansion; Competitive Advantage; Competitive Strategy; Segmentation; Health Industry; Sports Industry;

Language: English

Format: Print

23 pages

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Citation:

Collis, David, Eric Van den Steen, and Ashley Hartman. "SoulCycle." Harvard Business School Case 717-454, January 2017.

Teaching Note for HBS Case No. 719-411.Updates the classic Edward Jones strategy case as the firm shifts to a new "Solutions" business model from its previous "product" model in response to changes in the brokerage industry, technology and demographics, and its own success. Investigates how a firm can change its business model, without altering its competitive positioning / strategy. Allows for studying the "Complete Strategy Landscape" as the value to be captured from a strategy declines and must be replaced by a business model that creates more value.

Two esports entrepreneurs must choose on which business model to focus their time and money. After successfully launching an online esports coaching platform, a number of new opportunities emerge in the rapidly growing esports space that now has close to one billion gamers and an online audience that is greater than the Superbowl. Should they focus on a B2C business, a B2B business? Develop an analytics capability to support "sabremetrics" for esports or a content creation capability? How can they best exploit ownership of the world's top team in the "Hearthstone" league. The choice will depend on the future industry structure and how the two can most effectively "follow the money."

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