Publications
Publications
- May 2021 (Revised May 2022)
- HBS Case Collection
Headspace vs. Calm: A Mindful Competition
By: Ayelet Israeli and Anne Wilson
Abstract
By 2021, the mindfulness app wars reached their apex. Over 2,000 meditation apps were available to consumers, but two apps, Headspace and Calm, dominated the space, jointly holding about 70% of the total market. Headspace had established itself as the approachable educator for novice meditators. Headspace also invested heavily in athletics partnerships, business-to-business services, and in creating Headspace Health, which they hoped would gain FDA approval and become the first prescription meditation app. Meanwhile, Calm had earned a reputation as the soothing sleep app. Calm was also known for its numerous partnerships with A-list celebrities such as Matthew McConaughey, Harry Styles, and Idris Elba. Indeed, Calm was focused on becoming the leader in “calmtainment” and making a home for itself in Hollywood. What does the future hold for the rivalry between Calm and Headspace? Will both brands continue to co-dominate the mindfulness and meditation space or will one ultimately prevail? What should the brands do to maintain their co-dominance or edge out the other and claim the number one spot?
Keywords
Marketing Communication; Integrated Strategy; Brand; Brand & Product Management; Brand Communication; Brand Differentiation; Brand Building; Brand Management; E-Commerce Strategy; Ecommerce; App; App Development; Applications; COVID; COVID-19; Pandemic; Pricing; Pricing Strategy; Subscription Model; Subscription; Partnerships; Strategic Partnerships; B2B Vs. B2C; B2B; Health & Wellness; Wellbeing; Digitization; Commoditization; Mobile App; Mobile App Industry; Mobile Healthcare; Mobile Marketing; Digital Brand; Digital Health; Consumer Health; Apps; Online Business; Online Competition; Online Community; Online Entertainment; Entertainment And Leisure; Meditation; Marketing; Marketing Communications; Brands and Branding; Price; Strategy; Competition; Competitive Strategy; Competitive Advantage; Partners and Partnerships; Health; Well-being; Mobile and Wireless Technology; Communication; Communication Strategy; Disruption; Consumer Behavior; Digital Marketing; E-commerce; Applications and Software; Health Industry; Technology Industry; Communications Industry; United States; North America; United Kingdom
Citation
Israeli, Ayelet, and Anne Wilson. "Headspace vs. Calm: A Mindful Competition." Harvard Business School Case 521-102, May 2021. (Revised May 2022.)