Want FREE Templates on Strategy & Transformation? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.






Marcus Insights
Pivoting Fitness Centers for Digital Growth: Strategy Insights


Need help finding what you need? Say hello to Marcus. Based on our proprietary MARC [?] technology, Marcus will search our vast database of management topics and best practice documents to identify the most relevant to your specific, unique business situation. This tool is still in beta. If you have any suggestions or questions, please let us know at support@flevy.com.

Role: Vice President, Fitness Industry Strategy
Industry: United States Fitness Industry

Situation: The fitness industry in the United States has witnessed a paradigm shift towards digital and home fitness solutions, accelerated by the recent pandemic. As the Vice President of Industry Strategy, I am tasked with steering our network of fitness centers through this transformative period. We boast a strong brand and customer loyalty; however, our traditional brick-and-mortar model is under threat. We are grappling with the integration of virtual training options, personalized fitness plans, and mobile health tracking to meet the changing consumer demands. Internal challenges include aligning our organization's culture to the digital-first approach, evolving our governance structure to allow for rapid digital innovation, and retaining top talent amid a competitive landscape. Strategic considerations involve expanding our digital offerings, forging strategic alliances with technology companies, and potentially downsizing our physical footprint to optimize resources.

Question to Marcus:


How can we best pivot our business model to harmonize our established physical presence with the growing demand for virtual and personalized fitness solutions?


Ask Marcus a Question

Based on your specific organizational details captured above, Marcus recommends the following areas for evaluation (in roughly decreasing priority). If you need any further clarification or details on the specific frameworks and concepts described below, please contact us: support@flevy.com.

Digital Transformation

To successfully pivot your business model, Digital Transformation must be a top priority. This involves integrating technology not only into your fitness offerings but also into your operational processes.

Develop an app or platform that provides virtual training and health tracking that seamlessly connects with your physical gym experience. Personalized fitness plans powered by AI and machine-learning algorithms could offer customized workouts and nutrition guidance, enhancing value for your customers. Additionally, use Data Analytics to understand customer behavior and preferences, which can inform the development of new digital services.

Learn more about Digital Transformation Data Analytics

Change Management

Change Management is pivotal as you shift towards a digital-centric model. The transition will require a cultural shift within your organization, with existing employees likely needing to upskill to thrive in a digital environment.

Develop a comprehensive change management plan that includes clear communication of the vision, the reasons for the change, and the benefits to all stakeholders. Provide the necessary training and support to ensure your team is equipped to deliver on the new digital strategy.

Learn more about Change Management

Strategic Alliances

Forging strategic alliances with technology companies can accelerate your digital integration and mitigate the risk of building complex systems in-house. By partnering with established tech firms, you can leverage their expertise to introduce advanced fitness technology and platforms that complement your physical locations.

The alliances could also extend to wearable companies for health tracking integrations or content creators for virtual fitness classes.

Learn more about Strategic Planning

Business Transformation

Your organization's Business Transformation involves restructuring to prioritize digital offerings without completely abandoning your physical footprint. Reassess your network of fitness centers to determine which locations are essential, considering downsizing or repurposing underperforming locations.

Explore hybrid models that offer customers the flexibility of in-person and online experiences, such as live-streamed classes or in-gym technology that enhances the workout experience.

Learn more about Business Transformation

Customer Experience

In a digital-first fitness landscape, Customer Experience becomes even more important. Design your virtual offerings to be user-friendly, engaging, and personalized.

A seamless omnichannel experience that allows customers to switch between in-person and digital services without friction is crucial. Invest in Customer Service training and support for digital products to ensure a high level of satisfaction and to maintain Customer Loyalty during the transition.

Learn more about Customer Service Customer Experience Customer Loyalty

Innovation Management

Managing innovation effectively is key to staying ahead in a rapidly evolving industry. Create an innovation lab or task force within your company to experiment with emerging technologies like AR/VR for immersive workouts, blockchain for secure health Data Management, and IoT for connected fitness equipment.

This proactive approach to innovation can help you stay competitive and possibly establish new industry standards.

Learn more about Data Management Innovation Management

Data & Analytics

Utilize data and analytics to drive business decisions and create a more personalized experience for your members. Collecting data from app usage, wearable devices, and member interactions both online and in-person can help tailor fitness programs and marketing efforts.

Use predictive analytics to identify trends and adapt your offerings accordingly, ensuring your services meet evolving customer needs.

Learn more about Data & Analytics

Customer Relationship Management (CRM)

Investing in a robust CRM system can help you understand and manage customer relationships more effectively during this transition. The CRM system should capture interactions across both digital and physical channels, allowing you to create a 360-degree view of each customer.

This insight can be used to personalize communication, retain customers, and ultimately drive revenue.

Learn more about Customer Relationship Management

Supply Chain Resilience

As you expand your digital offerings, the resilience of your Supply Chain for physical products, like fitness equipment sold or used in your facilities, remains vital. Develop contingencies for equipment supply, possibly by diversifying your supplier base or increasing inventory for critical items.

Your ability to deliver a consistent experience, both in-gym and at-home, will depend on your supply chain's robustness.

Learn more about Supply Chain Supply Chain Resilience

Talent Management

In order to execute a successful digital pivot, you'll need to retain and attract top talent with the skills to drive your transformation. This might involve retraining existing staff, recruiting new talent with digital expertise, and creating a culture that embraces innovation and agility.

Employee engagement strategies will be essential to prevent turnover and ensure that your workforce is motivated and aligned with your new strategic direction.

Learn more about Talent Management

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.


How did Marcus do? Let us know. This tool is still in beta. We would appreciate any feedback you could provide us: support@flevy.com.

If you have any other questions, you can ask Marcus again here.




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Additional Marcus Insights