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Expert case by Agrim

BoxxFitness Gyms

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< 100 Ratings

Case Prompt

Our client is the CEO of BoxxFitness - a leading gym chain in the US with over 1,500 gyms. BoxxFitness is a premium gym concept with an annual membership fee that is 2-3x higher than most mainstream gyms. Each gym has a limited number of membership slots. Each member gets a dedicated locker, unlimited personal training, unlimited classes, and unlimited equipment usage. In the last 3 years, the chain has seen a decline in its profit margin.

Can you identify the potential reasons for this decline?

Section 1. Clarifying Questions

Ask 4-6 good clarifying questions.

Key considerations for coming up with the right clarifying questions:

  • Clarifying questions should be efficient and focused on solving the case problem
  • Asking the right clarifying questions will give you information that will greatly influence how you solve the case
  • Asking good questions can help in making the framework easily and make it more effective
  • Do not hesitate is asking very silly questions upfront - that is always ok
  • Do not assume any specific things without confirming with the interviewer
  • The case problem is that we need to find out the reason for the declining profit margin
  • The prompt only has minimal information about the gym chain
  • The prompt has NO information about the declining profit the
  • Clearly, we should try to know more about the gym's business model, its profit condition, and any other business-related information that may coincide with the start of the profit decline

Section 2. How would you structure your approach for this case?

Please take a time of 2-3 minutes to draw out your structure/framework. Once you complete this exercise, proceed forward to see a sample framework solution. Your solution does not need to 100% match the sample solution – there is no right/wrong answer. Study the sample and see how you can improve your own solution.

Section 3: What does this exhibit tell you about the likely problem?

Instructions: There are multiple exhibits in this case that give a composite view of the overall business. These are more challenging than typical interview exhibits since they are linked together to provide a more composite picture. However, feel free to simplify as per your convenience.

Note: For a candidate-led experience, simply reveal only as many exhibits/information as specifically asked by the candidate and let the candidate explore the information and proceed forward

Section 4: What does this exhibit tell you about the likely problem?

Section 5: What does this exhibit tell you about the likely problem?

Section 6: What does this exhibit tell you about the likely problem?

Section 7: What does this exhibit tell you about the likely problem?

Section 8: Can you summarise the case?

Instructions: Take 1 minute to collect your thoughts and write down the summary/conclusion. It should take you about 1.5-2 min to speak it out

Video Solution

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