Crunch Case Analysis

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Analysis on Crunch Case Situation Analysis Based on the “No Judgments” philosophy, the fitness club Crunch “supported an environment where people could stay in shape and be entertained without the intimidation factor Levine (the president of Crunch) saw in other types of clubs” (P.3). In order to win over the other competitors and expand in every stage of building this Crunch brand, the company is always trying to differentiate itself from other conventional fitness clubs and be the creator of a new trend in financing, brand management, expansion approaches and so on. However, in my view, the most important problem the company confronts is that the Crunch brand would lose its way as it expanded. That means, as Levine said, spending a great deal of time mulling over how growth would affect the public’s perception of the Crunch brand (P.11). For example, Crunch had been in discussions for several months with an Atlanta-based company SportsLife, about acquiring its chain of six fitness facilities. The critical reason why the company considered this business for a long time is that the company confronted choices: whether to give up the company’s current business model, both in financing and positioning, or to stay with the traditional business structure and find alternative methods for market penetration. Alternative Courses of Action From my perspective, the first alternative action is that the company could still build a “flagship” facility in Atlanta by purchasing SportsLife to have different kinds of exercise gyms aiming at different age groups and retails for fitness apparel manufacturers of Crunch brand. One of the benefits of this action is that even though the extent of target consumers is widened, the unique style of brand Crunch wouldn’t be misunderstanding. Because it still focuses on being an innovative captain of fitness field, and desires to spread

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