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?
Ask 4-6 good clarifying questions.
Key considerations for coming up with the right clarifying questions:
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.
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
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