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Deconstruction Of Cure Fit Business Model


Task: To be completed individually, you are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings.
Before commencing, you must seek your lecturer's approval to undertake an analysis of the business you have chosen. The type of organisation that should be identified for study is one that is relatively new, innovative in how they operate, and have most likely been established in the last five years. To achieve a result that meets your study objectives, please ensure the business report addresses each of the assessment criteria detailed below and which is elaborated in the marking rubric.

Assessment Criteria:

  1. Provide a succinct description of the business, the industry in which it operates, the market or markets it serves, and the products and services it provides (10%)
  2. Deconstruct the business model of the selected business using the nine building blocks in Osterwalder & Pigneur’s canvas (20%)
  3. Explain the key interrelationships that exist across the nine building blocks (20%)
  4. Identify and discuss the critical success factors the business has to get right to achieve sustainable success (10%)
  5. Evaluate what factors might impact the success of the business model (10%)
  6. Discuss the changes you would make to the business model if this was your business (20%)
  7. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).


A Cure Fit business model states the rationale and principle of how a company initiates, develops, captures the values and delivers in the context of social, economic, cultural factors. The method of construction and modification of the business model is also known as the innovation of the business model that forms a key part of the strategy of the business. This study will help to deconstruct the Cure Fit business model by using the nine blocks of building in the Osterwalder & Pigneur's canvas besides depicting the important relationships. The critical success factors of the business will be identified and discussed to achieve sustainability. The factors affecting the Cure Fit business model along with the recommendations will be evaluated in the report.

Overview of the business
Cure-Fit is a fitness and health company that offers offline and the digital experiences across nutrition, fitness and mental wellbeing. Cure-Fit provides a new whole meaning to the workouts with a range of the group of workout classes along with the incorporation of a range of trainers. The company operates in the health and fitness industry that develops different formats of workouts like Yoga, Zumba, Boxing, Sports Conditioning, Strength and Conditioning, Running and Football (, 2020). The different verticals of Cure Fit business model include eat. fit,, and The company has made acquisitions with different businesses like The Tribe and The Fitness First. Kristy Kitchen is an online company of food tech that has been also acquired by the business. The company has launched a mobile app in May 2017 regarding the devices of Android and iOS. The global rank of Cure-Fit is 66115. In 2006, Cure-Fit has developed $75 million at a valuation of $557 million with the Hadley Family Trust as the backers (Grundy, Held & Bero, 2017). In 2018, the company has earned a revenue of $4.61 million on a loss of $13.16 million.

Deconstruct the Cure Fit business model canvas
Partners: The Fitness startup Cure-Fit has got the funding from the Temasek which is an investment firm of Singapore (Liu, 2017). Accel Partners is also an important partner of the business. The other partners include the Oaktree Capital and the Softbank.

Key Activities: The key activities of Cure-Fit include the fitness, food and meditation that offers the classes of fun groups, healthy meals and the developed primary care in a single app. The technology used by the business includes the WizRocket and the Google Universal Analytics that helps to make contact with the customers.

Key Resources: The key resources are the four verticals like the mental well being via the, the physical fitness via the, the personalized solutions of healthcare via the and the healthy eating via the (Vieira & Ferreira, 2018). The React Native is an important resource of the business that helps to build apps through JavaScript.

Value Proposition: The business has developed an NPS class-based innovative proposition of customer value across the diverse range of fitness, nutrition and health sectors to make an expansion of the second round of investments in the firm and to make 100 million customers in the coming one year.

Customer relationship: The messaging platform of Kaleyra has helped Cure-Fit to develop the message alerts to the registered mobile number of the customers that helps to inform them about the confirmation of slot of the classes of Cure-Fit. This is done to develop the communication of real-time with the customers

Channels: Social media and the online community are the key channels of the business. Besides, the word of mouth publicity is an important channel(Kovalev, Babin & Nikishechkin, 2019). The customers get to know from the website and the apps about the fitness, health and nutrition programs.

Customers: There are about 10 to 15 millions of customers who use the digital services of the company. The customers are the athletes, the dieticians and the health professionals with a range of trainers.

Cost Drivers: The business has developed a $120 million round of funding mixed with debt and equity through the hands of the new investors like Unilever Ventures. Besides the salaries of the staffs along with the technology platform and the brand ambassadors have acted as the major cost drivers.

Revenue Stream: The streams of revenue of Cure-Fit lies in the million-dollar investments, along with the provision of a moderate membership fee to the customers through the app-based technology that will lead to an increased revenue generation of around $1 billion in the next three years (Collier & Munck, 2017). (Refer to Appendix 1)

Explaining the key interrelationships that exist across the nine building blocks
The customer building blocks of Cure Fit business model are defined as the segments of the customers that are the objectives laid by the business and in case of the health and fitness; the customers are mainly the athletes and the professionals of nutrition and health. They acquire different types of relationships as their needs are different and so they can make expenses of the different aspect of the offer. The building block of value proposition must be unique that makes the Cure-Fit different from the other companies. The value proposition can solve the problems of the customers through diversification of the business in health, fitness and nutrition (Osterwalder & Pigneur, 2010). The building block of channel typically develops the mode of communication to the customers via the website and the fitness app that helps to create awareness among the customers related to the fitness products, food items and the customized healthcare. Another important block of Cure Fit business model is the customer relationship that helps in the retention and acquisition of the customers through the Kaleyra messaging platform that will improve the sales of the business (Ng, 2017). The revenue streams of the fitness business have developed from the large investments by the companies and the recurring revenues from the membership fees. The key resources of the company are the four verticals that include the financial, physical, human and intellectual resources. The React Native is an important technological resource of the company that helps to perform the important activities of the business which in turn helps to successfully develop the Cure Fit business model. Activities like fitness training and healthcare services and the resources have helped the business to perform the key activities. Partners like the Temasek have also contributed to the key activity of the business. The partnerships are developed through acquisition and investments.

Identifying and discussing the critical success factors the business has to get right to achieve sustainable success
The Cure-Fit has considered uniqueness from the beginning that develops an initial appeal to foster trial through the introduction of the classes of high energy groups without any machines. The 50-minute routine helps to reduce boredom. The training is done with the help of pro boxers, Zumba and yoga experts. Reduces training costs, the well-structured and the certified trainers and service standardization are added critical success factors (Ferraz & Melo et al., 2018). The other critical success factors based on the Cure Fit business model are the edgy style and the slick imagery of the business. The critical success factors include the unique value proposition that has diversified in health and nutrition. The customers can avail the free membership fee from the Cure-Fit app on the minimal subscription that helps to provide value to them. The customization of the products for a particular customer segment has created the value of the business. They are trying to improve the market share through the expansion of the business in the USA and South Africa.

What factors might impact the success of the Cure Fit business model?
The heavy expenditure of capital in the nutrition segment of Cure-Fit has raised questions about the sustainability of the business (Pinto & Yagnik, 2017). The cost of real estate acquired by the business is also high. Moreover, the costs of rents of the company are locked in and increase gradually when compared with the membership costs that cause an imbalance in the expense vs income. The competitive marketing condition has also impacted the success of the Cure Fit business model that leads to decrease in value.

Discuss the changes in Cure Fit business model
Cure-Fit will have to make partners with the restaurants, hospitals and the other fitness centres to make available of the services and the products very easily to the customers. The Cure-Fit will have to develop the feedback platform via the introduction of the Feedback Fit to help the business work on the improvements. The collaborative promotional strategy will have to be encouraged by the business to ensure customer relationships and trusts. The business will have to improve the value proposition through the faster development of fitness networks.

Cure-Fit focuses on the value proposition through Kaleyra and Temasek investment to attract customers. The sales of the business have got increased due to the development of the app through WizRocket platform to improve customer relationships. Considering the Cure Fit business model, it can be stated that the company will have to make strategic partnerships with the fitness, healthcare and the nutrition companies for the easy availability of the products and to reduce the cost.

Reference List
Collier, D., & Munck, G. L. (2017). Building blocks and methodological challenges: A framework for studying critical junctures. Qualitative and Multi-Method Research, 15, 2-9. - health food | fitness | meditation. (2020). Retrieved 30 March 2020, from

Ferraz, N. D. A., Melo, F. J. C. D., Jerônimo, T. D. B., Albuquerque, A. P. G. D., & Medeiros, D. D. D. (2018). Evaluation of quality of service: real case in the hotel fitness centre. Cure Fit business model Revista Brasileira de Pesquisa em Turismo, 12(1), 1-27.

Grundy, Q., Held, F., & Bero, L. (2017). A social network analysis of the financial links backing health and fitness apps. American journal of public health, 107(11), 1783-1788

Osterwalder, A., & Pigneur, Y. (2010). Business model canvas. Self published. Last.

Kovalev, I., Babin, M., & Nikishechkin, P. (2019). Development of a method for the determination and registration of unauthorized data transmission channels at industrial manufactories. In MATEC Web of Conferences (Vol. 298, p. 00110). EDP Sciences.

Liu, K. (2017). Singapore's Temasek Holdings Control Mechanisms and the Performance of the Firms Controlled by Temasek. Asian Economic and Financial Review, 7(2), 188

Ng, H. Y. (2017, December). Categorization of business model patterns and mapping of their relations with business model building blocks. In 2017 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1767-1771). IEEE.

Pinto, M. B., & Yagnik, A. (2017). Fit for life: A content analysis of fitness tracker brands use of Facebook in social media marketing. Cure Fit business model Journal of Brand Management, 24(1), 49-67.

Vieira, E. R. M., & Ferreira, J. J. (2018). The strategic framework of fitness clubs based on quality dimensions: the blue ocean strategy approach. Total Quality Management & Business Excellence, 29(13-14), 1648-1667.

Appendix 1 –Business Model Canvas

Cure Fit business model

Appendix 2: CureFit consolidated major expenses of FY18-19

Cure Fit business model


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