CrossFit at the Crossroads

Case 5: CrossFit at the Crossroads C-63
CASE 5
CrossFit at the Crossroads
“I’m not trying to grow a business . . . I’m doing the right
things for the right people for the right reasons”
-Greg Glassman, Owner of CrossFit, Inc. [3]
It’s a pleasant July morning in Carson, California, in 2016
as Greg Glassman, the founder of CrossFit, Inc. makes
his way across the Stubhub Center turf and sits down
on one of the black Rogue plyoboxes that line the back
perimeter of the stadium. He gazes out past the ongoing
rows of boxes, connected rigs, and zigzag sprint course
to see the sun starting to rise over the grandstand canopy. Just 15 hours earlier those grandstands were filled
with thousands of passionate screaming fans cheering
on the final contestants of the 2016 Reebok CrossFit
Games. A slight grin appears across his face as he lets
out a faint but subtle chuckle to himself, almost as if
he can’t believe that he has built the fitness industry’s
fastest-growing brand.
The tenth consecutive CrossFit Games, the largest CrossFit sporting event in the world, was now over
and Glassman started to reflect back on how quickly
his creation has risen in just a few decades. In 1995, he
was a personal trainer looking for a place to train his
loyal clientele after being kicked out of yet another
commercial gym because management did not approve
of his unorthodox training methods, and now, he is a
multi-millionaire who owns one the largest brands in the
fitness industry. That unorthodox training method, well,
it is now one of the most popular fitness workouts in the
world and is arguably becoming one of the fastest growing sports of all time. Everything has happened so fast,
he thought to himself while watching the cleanup crew
start to tear down the event setup, we barely even have
a concrete business plan, he jokes but deep down inside
he knows that it is true. CrossFit has evolved so rapidly
that Glassman and his relatively small but fiercely loyal
employees have been forced to make important company
decisions on the go. Evident by CrossFit’s unprecedented
growth, those decisions have more often than not been
correct but with little time to reflect on the company’s
aim and future, how could he be fully confident in the
direction his company was heading and what does the
future hold for a fitness company operating in an ever
changing, potentially fad-like industry?
As Glassman got up to leave the stadium to catch the
quick flight back to the Silicon Valley in the company
jet, he decided he was going to disrupt his normal routine and take a few days off to think. His plan is to use
this time to genuinely reflect on where his company has
come and how the business has reached elite status as
one of the largest fitness brands in the world. What can
CrossFit, Inc. do to improve, what new trends can they
capitalize on, where is the future of the company and
sport going, and how can they avoid that dark irrelevant
fate where so many fitness startup companies eventually
end up?
History of Crossfit
Greg Glassman
Greg Glassman, born on July 22, 1956 to a rocket scientist father and a stay at home mother, was raised in the
Los Angeles, CA suburb of Woodland Hills. Around the
age of one, Glassman was diagnosed with Polio, a disease that affects the nerves in a person’s spine and affects
muscle movement. Growing up though, Glassman did
not let this disease define who he was as he turned to
sports such as gymnastics, cycling, and weightlifting to
counteract his inability to participate in contact sports.
His aptitude on the pull up bar along with having powerful upper body strength led him to excel at the rings in
gymnastics, but a freak injury on a routine dismount in
high school left him with a permanent limp and unable
to compete. Glassman subsequently turned to coaching,
a decision that would eventually define who he is and
create a legacy most people only dream of.
Glassman refers to himself as a “rabid libertarian,”
[1] a term defined as “an advocate of the doctrine of freewill.” [2] In high school, Glassman habitually read and
studied the theories of Milton Friedman, an American
economist who wrote such books as ‘Capitalism and
Freedom’ and the 50th anniversary edition rewrite
This case was written by Andrew Callaghan and Dr. Charles B. Shrader of Iowa State University, July 2016. It is intended to be used as a basis for classroom
discussion rather than as a demonstration of either effective or ineffective management of a situation. The case reflects the views of the authors and not the
exact thoughts and opinions of CrossFit, Inc. management. Part of the information in this case is derived from the authors’ personal experiences with the
case company. Some of the opening and closing managerial situations included in the case are fictional and are for illustrative purposes only.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
C-64 Part 4: Case Studies
of F.A. Hayek’s ‘The Road to Serfdom.’ It’s here where
Glassman’s management theories would form the basis
of his future business model, or lack there-of. At age 18,
Glassman took a job as a gymnastics coach at the YWCA
in Pasadena, CA. Little did he know at the time, this
being his first real coaching gig, that it would eventually be his calling in life. He attended college but never
graduated, stating “I went to a half dozen institutions,
but I was just there for the girls.” [3] His passion was
fitness training and throughout the late 1970s and ‘80s he
worked as a personal trainer. His commitment, knowledge, and extremely brash personality attracted people
to enlist his services in the Silicon Valley area, but it was
also his unique and unconventional methods toward fitness that allowed him to lure in not only the computer
tech leaders and local service workers but also celebrities
and professional athletes alike.
Results are what ultimately define success and
Glassman knew how to attain them, but his methods
were unusual and his workouts were seen as in your
face and bordering on intimidating. So intimidating to
the average gym goer in fact that he had been kicked
out of seven or more commercial gyms as a result.
Glassman’s attitude toward fitness can be described as
confident and assertive with firm beliefs, but that confidence can also be interpreted as defiant and arrogant.
In a 60 Minutes episode, when asked if he doesn’t like to
be told what to do, Glassman responded with a chuckle
and said “Oh, I don’t mind being told what to do . . .
I just won’t do it.” [4] But that is who Greg Glassman
is and that defiance is why he now owns 100% of the
fastest growing fitness program and emerging sport in
the world, CrossFit.
The Beginning
In the late 1980s and early ‘90s, Glassman tinkered with
his workouts and found success with his clients by combining High Intensity Training (HIT) with heavy fundamental movements and sprints. His workouts were
loud, intense, and demanding but also successful and his
client base started to expand. In 1995, after being asked to
leave what would be his last commercial gym, Glassman
decided to open his own training facility in Santa Cruz,
CA. CrossFit (at the time Cross-Fit) was born. Glassman
had a goal in mind to establish a fitness program that
would not only motivate participants to exercise but also
to constantly work toward achieving a high level of fitness. [5] At the time, Glassman was still training clients
solo, but after he started to become overbooked he soon
realized that he could train multiple people together and
still provide a safe environment as well as the required
attention to each participant to be effective. With that he
would also be able to increase his profits by charging a
reduced rate to each member but add more members to
each session. [6] Glassman found that his clients enjoyed
the idea of group fitness, and after he was hired to train
the Santa Cruz Police Department, the idea of “The
CrossFit Community” was formed.
In 2000, CrossFit, Inc. was legally established by
Glassman and his (now ex) wife Lauren. When prompted
by his oft-traveling clients to build a website and post
workouts of the day (WOD), so that they could train
on the road, Crossfit.com was created. In 2002, the first
CrossFit affiliate was started in Seattle, WA (CrossFit
North) by former Navy Seal Dave Werner and partners Robb Wolf and Nick Nibler. In the same year, the
CrossFit Journal was published in which Glassman wrote
three seminal articles explaining CrossFit’s principles
and theories, titled “What is Fitness?”, “Foundations,”
and “The Garage Gym.”
Crossfit Philosophy
What is Fitness? (According to CrossFit, Inc.)
One of CrossFit’s first newsletter articles [7] set out
to explain the company philosophy by questioning
previously proposed definitions of what it meant
to be truly fit. The article challenged the notions of
Merriam-Webster, Outside Magazine (“Fittest Man on
Earth”), and the industry leading National Strength
and Conditioning Association (NSCA), by concluding that their definitions were either too broad or too
narrow. The CrossFit article concluded that previous
attempts to define fitness were inadequate. Glassman,
however, defined fitness through a meaningful and
measurable way as “increased work capacity across
broad time and modal domains,” [8] where broad
time means “length of duration of effort” and modal
domains “variety of activity.” [9] In the What is Fitness?
article, Glassman defines three standards/models that
they use for evaluating and guiding fitness. Together
they outline CrossFit’s view of fitness as 1) ten general
physical skills widely defined by physiologists, 2) performance of athletic tasks, and 3) energy systems that
drive all human action (Exhibit 1). CrossFit’s aim is
not to specialize in one certain task of fitness but to be
a “jack of all trades.” The article states, “Our specialty
is not specializing. Combat, survival, many sports and
life reward this kind of fitness, and on average punish
the specialist.”
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Case 5: CrossFit at the Crossroads C-65
Foundations
The Foundations article presented CrossFit’s approach
to generalized comprehensive fitness and away from
the traditional workouts of isolation movements and
extended aerobic sessions that the majority of the
population participates in. [10] CrossFit works with
“compound (functional) movements and shorter high
intensity cardiovascular sessions” because they believe
that the two theories combined are “radically more
effective at eliciting nearly any desired fitness result”
than any other form of fitness. The CrossFit workout
can be universal as the movements and weights can be
scaled to fit any participant, or “athlete,” as CrossFit’s
members are called. Outsiders are often amazed that
CrossFit athletes range from professional athletes and
military special ops to the elderly and handicapped
and everyone in-between. In the “60 Minutes” episode,
when Glassman was asked if he would have a 75-yearold doing deadlifts his answer is simply, “Uh huh, yeah,
to say no is to say that if you drop your pen on the
ground, you’re not going to pick it up. It’s a deadlift,
it’s picking something up off the ground. It does not
require a physician’s ‘Ok.’ If your physician doesn’t think
you should deadlift, you need to get a new doctor.”
The Garage Gym
Glassman also strongly believed that the equipment in
a typical gym was useless. In simple terms he believed a
gym should resemble a barn or garage. It should be open
and uncluttered, and the equipment should require the
use of muscle in the most natural fitness sense. CrossFit
boxes were basic and austere. Modern gyms had fancy
weight machines focused on isolation work. CrossFit, on
the other hand, tried to develop overall fitness and conditioning as a philosophy. The whole thing was oriented
toward a natural and more primitive approach to basic
conditioning.
Glassman is such a firm believer in his methodology
that he strongly believes that between diet and exercise,
CrossFit can even be a solution to chronic diseases. The
Centers for Disease Control and Prevention (CDC) has
identified lack of exercise, poor nutrition, tobacco use,
and high alcohol intake as health risks that contribute
toward many of the illnesses and early deaths related
1) 10 recognized General Physical Skills:
– If your goal is optimum physical competence, then all general physical skills must be considered:
1) Cardiovascular endurance/Respiratory endurance – The ability of body systems to gather, process, and deliver oxygen
2) Stamina – The ability of body systems to process, deliver, store, and utilize energy
3) Strength – The ability of a muscular unit or combination of muscular units to apply force
4) Flexibility – The ability to maximize the range of motion at a given joint
5) Power – The ability of a muscular unit or combination of muscular units to apply maximum force in minimum time
6) Speed – The ability to minimize the time cycle of a repeated movement
7) Coordination – The ability to combine several distinct movement patterns into a singular distinct movement
8) Agility – The ability to minimize transition time from one movement pattern to another
9) Balance – The ability to control the placement of the body’s center of gravity in relation to its support base
10) Accuracy – The ability to control movement in a given direction or at a given intensity
2) The essence of this view is that ftness is about performing well at any and every task imaginable. Picture a hopper loaded with an
infnite number of physical challenges where no selective mechanism is operative, and being asked to perform feats randomly drawn
from the hopper. This model suggests that your ftness can be measured by your capacity to perform well at these tasks in relation to
other individuals.
The implication here is that ftness requires an ability to perform well at all tasks, even unfamiliar tasks, tasks combined in infnitely
varying combinations. In practice this encourages the athlete to disinvest in any set notions of sets, rest periods, reps, exercises, order
of exercises, routines, periodization, etc. Nature frequently provides largely unforeseeable challenges; train for that by striving to keep
the training stimulus broad and constantly varied.
3) Three metabolic pathways that provide the energy for all human action
1) Phosphagen Pathway – Dominates the highest powered activities (10 seconds or less)
2) Glycolytic Pathway – Dominates moderate powered activities (up to several minutes)
3) Oxidative Pathway – Dominates low-powered activities (excess of several minutes)
Total Fitness 5 The fitness that CrossFit promotes and develops requires competency and training in each of these three pathways
or engines.
Exhibit 1 CrossFit’s 3 Standard Principles
Source: Glassman, Greg. “What is Fitness?” The CrossFit Journal (October 2002): 1–4. Web.
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C-66 Part 4: Case Studies
to chronic diseases. Glassman advocates that CrossFit
targets two of those four conditions which are normally
prescribed with prescription drugs (high blood pressure)
or steroids (low muscle mass), “the problem is being
inactive and poor nutrition. It’s a lifestyle issue.” [1]
The CrossFit Journal, or newsletter, became an
important means for the company to disseminate
Glassman’s philosophy. Newsletters were published on
a monthly basis and included articles dealing with box
operations, fitness training, and lifestyle. For example,
the August 2014 CrossFit Journal contained a story
about how affiliate owners compensate coaches and
trainers. The story offered ideas on how to go beyond
simple financial incentives to motivate coaches and
trainers. Motivational ideas included: equal pay for
both affiliate owners and trainers, enhanced education
and certification programs for trainers, specialty programs for members, and building long-term relationships with trainers. Examples and success stories from
CrossFit centers in California, New England, and New
Zealand were shared. The goal of the newsletter was to
offer affiliate owners and trainers alike ideas on how
to make each box more capable in terms of enhancing
fitness and changing lives. [48]
Workout Methodology and Structure
CrossFit workouts are based on constantly varied functional movements (real-life movements) that incorporate
a mix of aspects from gymnastics, weightlifting, and cardio all while being performed at relatively high intensity
(Exhibit 2—list of exercises). The workouts are typically
performed in a gym, or “garage gym” because of the
rough appearance and similarities to at-home stripped
down style gyms, that the CrossFit community refers
to as a “box” and which includes an array of weights,
racks, boxes, bands, and balls but is void of commercial style machines (Exhibit 3—list of equipment).
The workouts are roughly 60 minutes in length and
typically include four phases: Warm-up/Stretch, Skill
Development Segment (SDS), WOD, and an Individual
or Group Stretch (Exhibit 4). The SDS focuses on
Olympic type lifts or calisthenics (bodyweight movements), and the WOD generally contain a combination
Weightlifting Gymnastics
Cardio/
Calisthenics

Deadlifts	Bar Muscle Up	Air Squats
Front & Back Squats	Rings Muscle Up	Box Jumps
Power Clean	Dips	Jump Rope
Hang Clean	Strict Pull Up	Rowing
Sumo Deadlift High Pull	Kipping Pull Up	Wall Ball
Snatch	Sprints
Overhead Squat	Jogging
Push Jerk	Jumping Jacks
Push Press	Sit Ups
Shoulder Press	Push Ups
Thruster
Tire Flip

AssignmentTutorOnline

Exhibit 2 List of CrossFit Exercises
Weightlifting Gymnastics
Cardio/
Calisthenics

Squat Racks/Rig System	Pull-up Stations/ Rigs	Medicine Balls
Bumper Plates	Rings	Bands
Barbells	Ropes	PVC Pipes
Dumbbells	Hand Chalk	Ab Mats
Kettlebells	Rowers
Sand bags	Boxes
Dip Belts	Hurdles
Steel Plates	Jump Ropes
Large Tires	Foam Rollers
Push Sleds

Exhibit 3 List of Equipment
Metcon (Time)
5 Rounds for time
3 Power Cleans 165/115 (male/female)
6 Box Jumps 30”/24” (male/female)
9 Toes 2 Bar
*8-min time cap
Rest 3 minutes then
Metcon (Time)
10,9,8,7,6,5,4,3,2,1
Shoulder to Overhead 135/95
Pull-ups
*13-minute time cap
Rest 4 minutes then
Metcon (Time)
3,6,9,12,15
Deadlifts 225/155
Burpees
*12-minute time cap
*ADD UP TOTAL TIME & RECORD
Exhibit 4 Daily Workout Example
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Case 5: CrossFit at the Crossroads C-67
of all movements performed in high-intensity bouts that
can last anywhere from 4 to 24 minutes long depending on that day’s goals. The workouts are designed to
arouse an athlete’s competitive nature not only within
themselves but also with the other competitors. Times
and repetitions are recorded on either large whiteboards or computer systems, which then rank the
athlete’s performances.
“Amanda” “Diane” “Jackie” “Nicole”

9-7-5	Deadlift 225 lbs	1000 meter row	Run 400 meters
Muscle Up	Handstand push-ups	Thruster 45 lbs (50 reps)	Max rep Pull-ups
Squat Snatch (135/95)	21-15-9 reps, for time	Pull-ups (30 reps)	As many rounds as possible in 20 minutes

“Angie” “Elizabeth” “Karen” “Cindy”

100 Pull-ups	Clean 135 lbs	Wall-ball 150 shots	5 Pull-ups
100 Push-ups	Ring Dips	(men 20#-10’ – women 14#-9’)	10 Push-ups
100 Sit-ups	21-15-9 reps, for time	For time	15 Squats
100 Squats	As many rounds as possible in 20 min

“Annie” “Eva” “Kelly” “Helen”

Double-unders	Run 800 meters	Run 400 meters	400 meter run
Sit-ups	2 pood KB swing, 30 reps	30 box jump, 24 inch box	1.5 pood Kettlebell swing 3 21
50-40-30-20 and 10 rep rounds; for time	30 pullups	30 Wall ball shots, 20 pound ball	Pull-ups 12 reps
3 rounds for time

“Barbara” “Fran” “Linda” “Nancy”

20 Pull-ups	21-15-9 reps, for time	Deadlift 1 1/2 BW	400 meter run
30 Push-ups	Thruster 95 lbs	Bench BW	Overhead squat 95 lbs 3 15
40 Sit-ups	Pull-ups	Clean 3/4 BW	5 rounds for time
50 Squats	10/9/8/7/6/5/4/3/2/1 rep	5 rounds for time

“Chelsea” “Grace” “Lynne”

5 Pull-ups	Clean and Jerk 135 lbs	Bodyweight bench press
10 Push-ups	30 reps for time	pullups
15 Squats	5 rounds for max reps. .
Each min on the min for 30 min

“Christine” “Isabel” “Mary”

3 rounds for time	Snatch 135 pounds	5 Handstand push-ups
500 m row	30 reps for time	10 1-legged squats
12 Body Weight Dead Lift	15 Pull-ups
21 Box Jumps	As many rounds as possible in 20 min

Exhibit 5 “Girl” WODs
The CrossFit philosophy that workouts should
be repeatable and measurable is the basis for selfimprovement. The “Benchmark Workouts” were originally named after “girls,” so that the athletes could easily
identify the unified workout, and have grown to include
Hero WOD in honor of fallen military, law enforcement,
and firefighters (Exhibit 5). The intent of the Benchmark
workouts is for athletes to perform them periodically, say
continued
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C-68 Part 4: Case Studies
a few times per year, and compare scores to track their
overall fitness progress. Glassman presented his theory
in the September 2003 CrossFit Journal article in which
he introduced the “girls”: “only by repeating workouts
can we confidently measure our progress.” [11]
The CrossFit Diet
Greg Glassman’s regular response when asked about
what CrossFit can do for a person is that it can deliver
you to your “genetic potential.” “Look at her! That’s what
nature would have carved from her a million years ago”
was Glassman’s reaction after seeing one of his welltoned athletes working out, but it is not just the workout
that CrossFitters are encouraged to practice. [4] They
are also urged to follow one of a few specific diets that,
based on personal goals, will provide CrossFit members
with increased energy, optimized health and will reduce
the risk of chronic diseases. The seemingly most widely
used diet is the Paleo Diet which is based on every day,
modern type foods that “mimic the food groups of
human’s pre-agricultural, hunter-gatherer ancestors.”
[12] In Glassman’s World Class Fitness in 100 Words [7]
statement, he provides some CrossFit diet advice: “eat
meat and vegetables, nuts and seeds, some fruit, little
starch and no sugar. Keep intake to levels that will support exercise but not body fat.” The Paleo Diet generally
fits these criteria as its directions suggest people consume high protein, lower carbs, high fiber, and moderate
JT Michael Badger Nate

21-15-9 reps, for time	3 rounds for time	3 rounds for time	As many rounds as possible in 20 min
Handstand push-ups	Run 800 meters	95 pound Squat clean, 30 reps	22 Muscle-ups
Ring dips	50 Back Ext	30 Pull-ups	4 Handstand Push-ups
Push-ups	50 Sit-ups	Run 800 meters	8 2-Pood Kettlebell swings

Daniel Murph Josh Jason

50 Pull-ups	For Time	For time	100 Squats
400 meter run	1 mile Run	95 pound Overhead squat, 21 reps	5 Muscle-ups
95 pound Thruster, 21 reps	100 Pull-ups	42 Pull-ups	75 Squats
800 meter run	200 Push-ups	95 pound Overhead squat, 15 reps	10 Muscle-ups
95 pound Thruster, 21 reps	300 Squats	30 Pull-ups	50 Squats
400 meter run	1 mile Run	95 pound Overhead squat, 9 reps	15 Muscle-ups 25 Squats
50 Pull-ups	18 Pull-ups	20 Muscle-ups

Exhibit 5 (cont.) “HERO” WODs
*For a Complete List log onto https://crossfitiota.com/bench-marks/hero-wods/
fat intake (Exhibit 6—Paleo Diet food options). While a
few of CrossFit’s top athletes have confessed about not
following a strict diet to a ‘T’ [13], it’s made quite obvious
that following one of the suggested diet options while
participating in CrossFit is recommended and will positively affect the athlete no matter if they are beginners or
top flight competitors.
Some CrossFit diet followers have become celebrities and authors in their own right. A good example
is Christmas Abbott, author of the Badass Body Diet.
[46] This diet combines healthy eating guidelines with
high-intensity workout plans for individual body types.
Following this plan, athletes at all levels can set personal
goals for developing toned cores and reducing body fat.
Ms. Abbott also has infused an element of fun into each
workout—noting that people tend to stay with a workout
plan longer if the workout is enjoyable.
Business
CrossFit, Inc. is 100% privately owned by Greg
Glassman—an ownership situation that totally fits his
style. In 2012, CrossFit began business as a 50/50 partnership between Glassman and his ex-wife. At that time,
because of a contentious situation, Glassman’s ex-wife’s
share was almost sold to Anthos Capital, an investment
firm looking to invest in one of America’s fastest growing brands. In the 11th hour though, Glassman was able
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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Case 5: CrossFit at the Crossroads C-69
to secure a matching loan through Summit Partners
(Boston) for $16,093,000 and put a halt to the potential
sale. [14] With Glassman in full control, he could operate
the company autonomously, without input from outside
corporate investors.
CrossFit, Inc. does not have to answer to shareholders or a board of directors. The headquarters, which handles the business operations, is located in Washington,
D.C. and the Media Office, the lifeblood of CrossFit’s
day-to-day technology operations, is based out of Silicon
Valley. CrossFit’s model resembles its owner’s libertarian
beliefs, as the growth of the company has come directly
Do’s:
Meats Seafood Veggies Oils/Fats Nuts Fruits

Poultry	Shrimp	Asparagus	Coconut Oil	Almonds	Apples
Pork	Lobster	Avocado	Olive Oil	Cashews	Berries
Pork Chops	Clams	Brussel Sprouts	Macadamia Oil	Hazelnuts	Peaches
Steak	Salmon	Carrots	Avocado Oil	Pecans	Plums
Veal	Tuna	Spinach	Grass-fed Butter	Sunflower Seeds	Mango
Bacon	Shark	Celery	Grapes
Ground Beef	Tilapia	Broccoli	Lemon
Venison	Trout	Peppers	Lime
Buffalo	Walleye	Cabbage	Oranges
Bison	Crab	Zucchini	Bananas
Jerky	Scallops
Oyster

Don’t’s:
Dairy Grains Legumes Snacks

Cheese	Cereal	Beans	Pretzels
Non-fat Creamer	Pasta	Peas	Chips
Butter	Bread	Peanuts	Cookies
Milk	English Mufn	Peanut Butter	Pastries
Yogurt/Pudding	Sandwiches	TOFU	Hot Dogs
Crackers	Mesquite	Fries
Oatmeal	Miso	Artifcial Sweeteners
Corn	Soybeans	Pop/Soda
Pancakes	Fruit Juices
Hash Browns	Energy Drinks
Beer

*These are an option list/not exact. Please see source for more information.
Source: http://ultimatepaleoguide.com/paleo-diet-food-list/
Exhibit 6 Paleo Diet Foods
from its affiliation program that permits individuals to
own and operate their own box while using the CrossFit
name and allows them to run their business with independence and autonomy.
Affiliation
CrossFit-affiliated boxes started in 2002 with the CrossFit
North opening and have spread like wildfire throughout the world. To open a box, essentially all one has to
do is fill out an application, pay $3,000 per year, attend
a 2-day seminar detailing the business and the workout methodology, and pass a test to become a Level 1
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C-70 Part 4: Case Studies
instructor ($1000). When confronted about the seemingly easy nature of this process, CrossFit’s fearless leader’s response was:
“Amazing huh?… Here’s how it used to be: all you had to do
was have the money. . . and you don’t even have to take a
test. That’s where every other chain came from, someone just
launched ‘em.” [4]
CrossFit box owners have the freedom to manage
their box in their best interests so that they can cater
to the local demographic. To Glassman, his main concern is not about what hours the affiliate owners are
operating, the location in which they choose to open
their business, or the music that is played; his only
concern is that they follow CrossFit’s physiology and
methodology. [1] Each affiliate is locked into their original annual fee in case the fee is ever raised. In fact,
there are affiliates, who got in early, that still pay only
$500 per year.
CrossFit, Inc. created CrossFit RRG (Risk Retention
Group), which is a captive stock insurance company
that allows American affiliates to purchase specific
CrossFit general liability and professional liability
policies designed to cover the unusual risks boxes are
susceptible to. [15] CF-RRG is a form of self-insurance
where the affiliate owners purchase stock and become
shareholders (1-time fee of $1,000). Box owners who
buy into the group are involved in the underwriting,
risk management, claims administration, and financial
committees. [16] Boxes earning less than $125,000 per
year pay a yearly premium of $1,185 with boxes that
earn greater than $125,000 per year paying an extra
$8.70 per $1,000 of gross revenue earned. Affiliations
are urged to purchase insurance from CF-RRG rather
than an outside vendor because CrossFit endures
unique circumstances that most liability policies may
not thoroughly cover. Owning this specialized policy,
box owners are eliminating the possibility of omissions and will have the most comprehensive coverage available. International CrossFit boxes are insured
through somewhat similar companies such as the
CrossFit International Insurance Programme, which is
run through Lloyd’s of London and covers box owners
in the UK. [17]
Growth
Glassman admits that when he started CrossFit he
did not have a business plan, that his goal was simply
“being committed not to screw it up,” and that he has
stuck by that plan ever since. [18] The numbers, though,
would suggest otherwise. In 2016, a little over a decade
and a half since CrossFit, Inc. was formed, Glassman’s
corporation has become one of the fastest growing fitness companies of all time. With roughly 13,000 gyms
in 142 different countries, CrossFit, Inc. rakes in close to
$100 million and the CrossFit brand’s estimated ecosystem is approximately in the $4 billion range (2016). [18]
The scary part? The company is still growing. “I don’t
know how you compete against me” said Glassman in an
interview with CNBC.
CrossFit, Inc. brings in most of its profits from
two main sources: 1) affiliates and 2) CrossFit Training
Certification courses. But even with CrossFit’s rapidly
growing business it is hard to look anywhere else but
the core concepts that have brought them to this point:
technology and having a loyal group dynamic culture
that has adopted CrossFit as more than a workout but a
way of life. CrossFit is a technology company. It started
with Glassman posting workouts, journal articles, and
an easy-to-use blog onto www.crossfit.com. Since then,
the company’s success has followed the growth of the
Internet. One ten-minute browsing session on their website and you can find CrossFit’s mission, workout methodology, limitless instructional videos, workouts of the
day, nutritional ideas, gym locations, and much, much
more, all for FREE. Yes, for free! When asked about the
financial implications of giving away free content and
how that makes sense in today’s capitalistic economy,
Glassman replied “it didn’t until we did it, the more
video we give away, the more money we make.” [4] The
all exposure is good exposure philosophy has assembled
one of the largest viral communities in the world and
when combined with their devout and enthusiastic allegiance toward the brand, largely explains why CrossFit,
Inc. has been able to grow at the record-breaking pace
it has.
The Community
CrossFit is much more than just a fitness regimen—it
has evolved into a distinctive community within itself
where its followers are amazingly loyal and dedicated.
For many, CrossFit has become a way of life. CrossFit
affiliates have been extraordinarily successful in creating an atmosphere where its members feel a sense
of belonging which motivates them to come back day
after day and push themselves harder, whether that’s
to beat the person next to them or just to improve
from their previous scores. The CrossFit Community
members have taken a leading role in marketing the
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Case 5: CrossFit at the Crossroads C-71
CrossFit brand. They have created an almost obsessive-like adoration for CrossFit to the point where they
actively promote the sport through any outlet possible.
It has prompted outsiders to joke that “the first rule of
CrossFit is that you never stop talking about CrossFit,”
parodying a line from the Brad Pitt movie, Fight Club.
[19] Whether box members are viewed as loyal, fanatic,
annoying, or crazy one thing for certain is that their
dedication to spreading the brand, whether intentionally or unintentionally, has been an exceptionally lucrative model for CrossFit, Inc.
Glassman insists that he has not recruited one person
to CrossFit. To him CrossFit has an open door policy
and anyone who wants to join is welcomed to do so. [4]
Through tremendous leadership and coaching, CrossFit
has been able to provide an atmosphere where its members seek to live their lives in a state of optimal health
and fitness in a time where health and fitness are becoming less of a priority. [5] The members work out together
multiple times per week often creating a team-like bond.
This type of interaction, uniting by a common goal or
interest, is similar to the family-like atmosphere most
sports or military teams have. The CrossFit Community
is also able to attract members through their group volunteer and charitable.
American sociologist Ray Oldenburg introduced
the idea of a “Third Place” for healthy human existence.
[20] He believed that humans must live in a balance
of three realms: 1) Home/Family Life, 2) Work Life—
where people spend most of their time, and 3) a Third
Place—inclusively sociable places. Third Places are
described as “anchors” of community life and facilitate
& foster broader, more creative social interaction. One
of the main characteristics of Third Places is that they
act as a “leveler,” which means they place no importance on an individual’s status in society and allows
for a sense of commonality between members. They
are highly accessible places, where friendships develop
that fill the human need for “intimacy and affiliation.”
In what used to be the traditional Third Place, church,
studies have shown that the new generation of millennials have been leaving the religious life behind, [21]
thus creating a void in many people’s lives. The CrossFit
Community, through its affiliates, have been able to
provide that Third Place for many of its members.
The box offers its athletes a place where they can build
those social relationships and have a sense of “place.”
In turn, its members adopt the CrossFit lifestyle as one
of their main identities and that which becomes a part
of who they are. This could explain why they “always
talk about CrossFit” or post CrossFit related content to
social media outlets. CrossFit, in a (smaller) sense, is as
much a part of many of its members’ lives as say their
families, therefore creating that automatic impulse to
constantly want to talk or interact with other about
their CrossFit lives, the same as they would about their
children or significant others.
In a 2014 CrossFit demographic study, the data did
illustrate that the millennial generation had the highest
level of participants but not by as much as many would
think. They only comprised 40% of participants while
the 35–44 age group consisted of 20% with the under
18’s covering 18%. [22] Along with the age demographic
they found that CrossFit is evenly split 50/50 between
female and male participants thus attesting to the fact
that the CrossFit workout is feasible at any age, male
or female.
Technology and Social Media
The shift toward social media outlets becoming a
primary form of contact in today’s society has vastly
affected the field of communication, marketing work
and advertising. Gone are the days where the majority of adults actually dial someone’s number up and
speak to them over the phone as social media has
increased the ability and frequency in which people can
“checkup” on one another in a much less personal way.
In a 2014 social media study, it was found that 52% of
online adults now use at least two forms of social media
sites and the numbers showed that usage of young
adults (18–29 y/o) on Instagram, just one form of social
media, was around 53%. [23] The CrossFit Community
is no stranger to this as the basis of their growth can be
attributed to increased action on the Internet and social
media sites from its members.
When CrossFit, Inc. launched its first blog system,
which allowed box owners to communicate not only
with headquarters, the media team, and other affiliates
at the click of a mouse but also with their own clientele,
they created an easy medium where information could
be shared at a faster pace and to a larger audience. Just
because Glassman himself has not recruited anyone
over social media that does not mean his loyal followers have not. The Internet communication concept
has spread to more common and interactive uses of
social media (YouTube, Facebook, Twitter, Instagram,
etc.) now within specific box communities as a way to
mass market their new and exciting fitness program
with outsiders. Since the mid-2000s box owners and
community members have hit the social media world
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C-72 Part 4: Case Studies
running and are no strangers to posting pictures, videos,
or workout statuses from their experiences or the CrossFit
world. Social media is an incredibly accessible and costeffective way to reach a wide audience in little time, and
the more community members post the more CrossFit’s
ecosystem grows. It’s a multiplier effect that spreads the
CrossFit brand like wildfire. A 2012 study on Internet
usage found that 23% of U.S. Internet users under the age
of 35 said they would buy a brand because of a friend’s
social endorsement, such as a “like” on Facebook. [24]
This is a growing trend in the capitalistic technological
world we live in, and for businesses looking to grow it
is almost a must that they use social media as a marketing outlet.
Although many of the CrossFit customers who
actively post personal information on social media
understand the logic or intent of spreading “the word”
about CrossFit, often times they are also engaging in a
form of self-promotion. As adults, people start to have
fewer tangible goals they can point to and share as a
source of pride. Their high school accolades have lost
social value and their current work accomplishments
usually do not translate well to social media. CrossFit
fills that void and allows members to take pride in their
accomplishments, whether it is losing weight, hitting a
new personal record, or even simply proving that they
have gotten off the couch and are participating in an
intense workout. [25] A 2014 sociological study [26] on
“trophies of surplus enjoyment” (photo’s, merchandise,
trinkets, etc.) found that people hunt for trophies at
events they attend not just for their fandom and remembrance but also as envy-inducing commodities they can
share on social media so that others can acknowledge
them through “likes,” “favorites,” and “retweets.” This
is often what CrossFit community members are doing
when posting photos and videos to social media. The
pictures or videos of them participating in CrossFit act
as “acquired trophies” so that others can socially recognize their efforts and potentially elevate their “status” in
the viewer’s eyes.
The CrossFit Community’s indulgence in social
media, evidenced by the rapid success of CrossFit as a
sport and a brand, further proves that their presence
in the technological and social media world has been
a surefire benefit. The CrossFit Community as a whole
understands the value of social media, and whether their
intentions are of the conscious or unconscious nature,
they use this medium to pique the interest of outsiders
about as well as anybody.
The CrossFit Games
From the very first journal article introducing CrossFit
to a larger scale, Greg Glassman has challenged the idea
of who is the “fittest on earth.” The CrossFit philosophy
of defining fitness through meaningful and measurable
ways opened up a door for competition to exist. Enter,
The CrossFit Games, which have been held annually
since 2007 and continue to grow at record numbers each
year. The games are a physically and mentally demanding competition held over a few days where competitors
are blind to the certain events until right before they
participate. At the end, the overall winners are awarded
the title “Fittest on Earth.”
The first games in 2007, held on CrossFit Games
Director Dave Castro’s parents’ land in California,
consisted of first-come participation with the winner receiving a $500 prize. Popularity grew with The
Games as the company grew and in 2011 The CrossFit
Games hit a banner year as CrossFit, Inc. signed
Reebok to a 10-year title sponsorship as well as having
the games broadcasted through ESPN3 (online). [27]
With the rising number of participants yearly, CrossFit
adopted an online qualification format that included
three stages. Stage 1, known as ‘The Open,’ occurs in
March when contestants submit weekly scores online
from recently released competition workouts from
crossfit.com. The scores are validated through affiliates,
or video is uploaded proving participants score times.
The top qualifiers from pre-determined regions will
participate in Stage 2, regional events, held throughout
the world in order to qualify for Stage 3, The CrossFit
Games. In 2011, online participation totaled 26,000 submissions and has grown exponentially as 2016 online
submissions totaled 308,000 people, a CrossFit Games
record. [28]
With Reebok and ESPN on board, The CrossFit
Games are now considered a top flight fitness competition and are broadcast worldwide live on ESPN. The
winners in 2016 will receive $275,000 and the total prize
pool, paid from the Reebok contract, is $2,200,000 and
will rise annually throughout the length of the contract
(Exhibit 7). Even though The CrossFit Games are not a
large profit source for CrossFit, Inc. the magnitude of
what The Games brings to the company is immeasurable. The exposure of the competition alone is one of the
driving forces in making CrossFit the number one fitness
enterprise on the planet and looking at the yearly increase
in participants, prize money and attendance, The Games
momentum does not appear to be slowing down.
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Case 5: CrossFit at the Crossroads C-73
Participant Data
Year # of Participants

2007	60 (no open)	Games
2008	300 (cap – no open)	Games
2009	146 (post regionals)	Games
2010	86 (post regionals)	Games
2011	26,0001	Open
2012	69,240	Open
2013	138,0001	Open
2014	209,0001	Open
2015	273,0001	Open
2016	308,0001	Open

Exhibit 7 The CrossFit Games History Data
Participant Data (Open)
Year Winner Total Prize Purse Sponsor

2007	$500	$1,000
2008	$1,500	$3,000
2009	$5,000	$10,000
2010	$25,000	$50,000	Progenex
2011	$250,000	$1,000,000	Reebok
2012	$250,000	?	Reebok
2013	$275,000	?	Reebok
2014	$275,000	$1,750,000	Reebok
2015	$275,000	$2,000,000	Reebok
2016	$275,000	$2,200,000	Reebok
2017	?	$2,400,000	Reebok
2018	?	$2,600,000	Reebok
2019	?	$2,800,000	Reebok
2020	?	$3,000,000	Reebok

*Spaces with ‘?’ mean we were unable to find accurate numbers.
Sources: http://www.everylastrep.com/fitness-for-beginners/look-crossfit-games-history
http://games.crossfit.com/content/history
Industry Competition
At the beginning of 2016 there were numerous fitness
centers competing in a growing national and global market. Primary activities for this industry included operating health clubs, gyms, aerobic and exercise centers, and
other fitness-related facilities. The industry was fragmented with many companies that were growing and
combining across regional and product lines. Demand
for fitness and recreation centers continued to increase
thereby causing the number of people employed in the
industry to increase. By 2015 there were almost 33,000 fitness centers in the United States. The industry employed
approximately 568,000 people that same year. [29] In 2016,
the overall industry had grown to $27.1 billion in revenue and $2.8 billion in profits. Membership fees were the
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
C-74 Part 4: Case Studies
single largest revenue component and member retention
was the key to a center’s profitability. Fitness centers competed on brand recognition, customer service, price, and
services offered. [47]
Even though competition was great, industry entry
barriers were considered to be low. It was possible to
lease equipment and buildings and both equipment and
buildings had long life spans. Many start-ups were able
to use second hand or previously used equipment. Wages
were low. There were not many regulations other than
zoning and building permit processes at the local levels.
Access to capital for start-ups was readily available in
most instances. The only real entry barrier was the brand
loyalty and recognition built up by established gyms and
fitness centers. Fitness center memberships were on the
rise. However, in the future, it was expected that entry
barriers would rise due to the possibility that corporate wellness programs would create strong demand for
large-scale memberships, thereby creating barriers for
newer companies. [47]
Yet even with all this activity in the business of fitness
there was evidence that additional growth was possible.
A 2016 study of nine countries by Censuswide, a global
consultancy, found that the average person spent only
0.7% of their life exercising—or stated differently, out
of an average person’s 25,915 days on earth, they tend to
spend only 180 days exercising. [30] However, the number of adults aged 20 to 64 spending leisure times exercising and on sports was increasing. Plus, the number of
employers viewing exercise as an important component
of employee health was also on the rise. Therefore, in the
minds of many these findings established the need for
increased emphasis on global fitness. The view of industry experts was that there was plenty of room for growth
for both large companies and niche players (See Exhibit 8
for possible fitness niches). The industry was expected to
grow, in terms of industry value added (IVA- a measure
of the industry’s contribution to the economy overall) by
approximately 3% from 2016 to 2021. [47]
CrossFit competed in this industry with a unique
value proposition that was more a philosophy of fitness
than a business model. It appealed strongly to the largest
market segment—consumers aged 34 years and younger.
[47] Still, other companies thrived in the industry
as well. Among the industry leaders were Anytime Fitness,
Arcadia Fitness, Gold’s Gym, GoodLife Fitness, LA
Fitness, Planet Fitness, 24 Hour Fitness and Zumba. LA
Fitness and Planet Fitness were publicly traded companies
while most other competitors were private or closely held
firms. Each company sought large-scale expansion while
at the same time targeting particular segments for growth.
Anytime Fitness. As the name implies, Anytime
Fitness operates fitness centers that are open for workouts
twenty-four hours a day 365 days a year. Anytime Fitness,
with more than 3 million members, was one of the
fastest-growing and most progressive fitness businesses
in the world. It received notoriety as one of Entrepreneur
Magazine’s top 10 fastest-growing franchises across all
industries in 2015. From its first center in 2002 it grew
into all fifty states and twenty countries with 38 wholly
owned and approximately 3,000 franchised centers
worldwide in 2016. For example, they opened a fitness center in Rome in 2016. The co-founder Chuck
Runyon, used private equity and franchising to finance
the company’s rapid growth. Also to facilitate growth,
in 2016 it moved into a new building and expanded to
300 employees at its headquarters in Woodbury, Minnesota.
Runyon expected to continue growing the company at a
rate of approximately 400 franchisees annually toward
of goal of 4,500 centers by 2020. Starting a franchise cost
between $100,000 and 500,000 plus a $30–37,500 franchise fee. Anytime required franchise owners to pay a
$549 monthly royalty. In 2017, the parent company of
Anytime Fitness, Self Esteem Brands, was diversifying
into salons and other fitness-related businesses. [31]
Arcadia and GoodLife. With more than 365 operating fitness centers, GoodLife Fitness was the largest fitness company in Canada. Members could join for around
1. Wearable technology
2. Body weight training
3. High-intensity interval training
4. Educated, certifed, and experienced ftness professionals
5. Strength training
6. Group training
7. Exercise is medicine
8. Yoga
9. Personal training
10. Exercise and weight loss
11. Fitness programs for older adults
12. Functional ftness
13. Outdoor activities
14. Group personal training
15. Wellness coaching
16. Worksite health promotion
17. Smartphone exercise apps
18. Outcomes measurements
19. Circuit training
20. Flexibility and mobility rollers
Exhibit 8 Top 20 Worldwide Fitness Trends for 2017
Source: Worldwide Survey of Fitness Trends for 2017 by Walter R. Thompson, PhD.,
ACSM’s Health & Fitness Journal, November/December 2016
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Case 5: CrossFit at the Crossroads C-75
$50 a month and specific classes were available for an
additional fee. TRX suspension training classes were the
most popular starting at $199 for six weeks. These classes
kept members involved through a progressive training
structure—each new class building upon what members
learned in previous classes. Many GoodLife centers were
oriented toward women’s fitness. GoodLife provided
individual trainers as well as individualized workout
sessions for class members in order to mesh with member work schedules. Another Canadian fitness company,
Arcadia, specialized in fitness programs for women
taught by women that emphasized the use of gravity and
body weight as resistance. Arcadia and GoodLife occupied some of the same competitive space in a growing
market. The Canadian fitness industry generated over
$2 billion in revenue and was growing at an annual rate of
over two per cent. Approximately five million Canadian
citizens were members of fitness clubs in 2012. [32,33]
LA Fitness. This company began in 1984 in Covina,
in Southern California. It mission is to provide lifelong
good health benefits to an increasingly diverse membership base. The business model was to tailor each individual fitness center to the specific needs of the community
into which the company expanded. LA Fitness viewed its
competence as being able to understand and meet the distinctive needs of the metropolitan communities in which
they operated. They offered workouts and programs to
people of all ages and fitness levels. The company strove to
be family-friendly. Growth goals for LA Fitness centered
on the idea of making fitness more available to larger segments of the community. It offered access to free weights,
weight machines, and cardio to members. [34]
Planet Fitness. Planet Fitness was also a large and
fast-growing competitor in this industry. In 2015, it
maintained over 1,100 spacious and clean facilities (most
of these were franchises) in 47 states with a large selection of Planet-Fitness branded equipment. Their slogan
is: ‘We’re not a gym. We’re Planet Fitness.’ Typical centers were 20,000 square feet filled with purple and yellow cardio and weight-training equipment of all types.
Memberships were inexpensive relative to other centers
and Planet Fitness offered unlimited fitness instruction
to all members. Their goal was to appeal to a broad market by creating a welcoming and non-intimidating, ‘judgment-free,’ fitness environment for anyone. Company
revenue for 2015 was $1.5 billion and it had aggressive
plans that included growing equipment sales, expanding
franchise royalties, driving revenue growth, and growing
into a broad range of markets. Planet Fitness planned to
increase the number of stores in the United States to over
4,000 and to grow into Canada in the near future. [35]
Gold’s Gym. Gold’s Gym considered itself the original fitness company. Founded by Joe Gold in Venice,
California in 1965 it gained notoriety in the documentary
movie Pumping Iron starring two young weight-lifting
sensations Arnold Schwarzenegger and Lou Ferrigno.
Gold’s had over 3 million members in 22 countries and
38 states in 2016. It offered weight-training primarily but
also cycling, martial arts, muscle endurance, Yoga, and
Zumba. However, it was strength training that set Gold’s
apart from other centers. The company claimed to be able
to enhance the strength of members, with the additional
claim that with physical strength came strength to excel at
other aspects of life. Gold’s Gym was privately held. [36]
24 Hour Fitness. 24 Hour Fitness competed in a market space similar to Anytime Fitness and Planet Fitness.
24 Hour operated 400 centers for four million members
in seventeen states. The company had run successfully
for over thirty years offering convenience to its members. It had accessible, affordable, convenient places
for people of all fitness levels and abilities. Its business
model was oriented toward allowing each individual to
seek out his or her own fitness goals and pursue them on
their own terms. [37]
Zumba. Zumba began operations in 2001. By 2016
it had grown to almost 200,000 centers or locations
worldwide. The basic idea of Zumba fitness was to
burn calories through dance-related aerobic routines.
Zumba centers or classes were found in churches,
hospitals, schools, and universities. Almost any room
large enough with a good sound system would suffice
as a Zumba center. The company also aggressively sold
Zumba workouts on CD. The main goal was to provide
a non-threatening atmosphere where participants could
dance and have fun. Zumba tended to appeal to mothers because they could work out at home. Company
executive also claimed that people tended to stay with
Zumba longer than other competitors because it was
fun. Zumba sold itself as being ‘fitnesstainment.’ [38]
Criticism
The growth of CrossFit is undeniable and the future
of the company and sport is still as bright as ever, but
CrossFit like most fitness industry startups is facing a
certain degree of criticism and skepticism. Throughout
the first decade and a half, CrossFit has faced an array of
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
C-76 Part 4: Case Studies
naysayers who criticize CrossFit’s methods, techniques,
safety measures, and legitimacy. The following are a few
of CrossFit’s most common criticisms:
Cult. One of the most widely mentioned criticisms of
the CrossFit industry is that it is a “cult.” Doubters of
CrossFit feel that the family-oriented atmosphere that
CrossFit revolves around resembles that of a cult-like
following. Typical arguments insist that CrossFit brainwashes its members with their workout effectiveness,
paying large membership fees (generally around $100/
month), to being led by a ‘leader’ who dictates how they
should act, to being elitists who only socialize with other
CrossFit members.
Injury/Safety. Outsiders have often claimed that the
CrossFit workout can be unsafe for its participants. The
intensity and competitive nature can lead to too much
heavy lifting and improper form all the way through
the rep sets opening up opportunities for injury. The
most commonly mentioned injury/disease used against
CrossFit is rhabdomyolysis. Shortened in the CrossFit
world to “rhabdo,” this is caused by the death of muscle
fibers and the release of their contents into the blood
stream. [29] Rhabdo results from overexertion, which
leads to the body’s muscles breaking down and potentially causing kidney failure. Although it can be deadly,
it is usually a treatable disease.
Legitimacy. Many proponents of CrossFit argue that
the workout methods do not produce realistic results—
that the libertarian methods of allowing box owners to
create their own workouts within an entire methodology opens up the risk for unqualified coaches to piece
together workouts that are not safe and do not translate
into results. [30] High Intensity Interval Training (HIIT)
is widely considered one of the best forms of exercise
to burn fat, and CrossFit is no stranger to utilizing this
method. But many feel CrossFit fails at this in their mix
of intensity versus volume. Some contend that CrossFit
uses HIIT as a fitness test and not necessarily for the
best results. For example, a widely used HIIT method
is TABATA (named for Japanese Scientist Dr. Izumi
Tabata), which uses eight rounds of one exercise (bike,
sprints, etc.) that includes 20 seconds of all-out work
and 10 seconds of rest. CrossFit has a workout called
‘TABATA THIS’ in which athletes complete rows, air
squats, pull ups, push ups, and sit ups . . . for 40 intervals!
Critics say that this far exceeds the accepted mix and
exposes participants to a decrease in intensity because
of the large volume as well as a breakdown in technique,
which both can lead to less effective and more dangerous
results. [31]
Saturating the Market. While most of CrossFit’s criticism comes from outside the community, there are affiliate owners who have concerns regarding the rapid pace
at which CrossFit has grown. One box owner who has
seen the rise of CrossFit through increased usage of social
media pointed out that “growth doesn’t equate to quality.”
He wonders if the rapid growth is just inflating a trend or
if CrossFit will become a permanent fitness fixture. [32]
While many business owners are reluctant to respond
to public criticism for fear that it will damage their reputation, CrossFit, Inc. and their legion of followers are the
exact opposite. CrossFit has a team of employees who
patrol the Internet looking to defend the brand with an
iron fist against anyone and everyone who tries to deface
it. Glassman has an entire team of lawyers dedicated only
to defending the brand name as well as its trademark
from people around the world who attempt to use the
CrossFit name without paying for it. When asked why,
Glassman explains, “if you don’t defend it, you won’t
have a brand for long. We are in shark-infested waters
and I’ve got shark-repellant attorneys.” [4]
What Next?
After a few days of relaxation, reflection, and thought,
Glassman came to the confirmation that he was content
as to where CrossFit was, both the brand and the workout. He understood that he is one of the fortunate ones
to break through the “fad” stage in the fitness industry
and is truly on the verge of creating not just a revolutionary workout but an entirely new sport, and he did it
his way. With that thought though, he knows that there
are future decisions that must be made to allow the
brand to continue to grow and some of those decisions
could conflict with CrossFit’s current culture, values,
and philosophies.
Sticking to CrossFit’s roots as a technology leveraging fitness company, he thought about the future, how
they can continue to stay on the cutting edge of technology and what avenues would be beneficial to continue to
grow the CrossFit brand. Now that CrossFit, Inc. is in a
place of financial stability, he also kicked around the idea
of starting to get involved in large outside advertising to
increase the brand’s recognition and reach, such as stadium naming rights and national television advertising.
Would the opportunity to increase his brand awareness
through mainstream advertising, a path that CrossFit
typically has not followed, help or hurt the loyalty aspect
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case 5: CrossFit at the Crossroads C-77
on the local affiliates’ ability to survive? Would there be
a ‘Walmart-Effect’ [35] and if so, should they increase the
corporate-sized gyms’ yearly fee to offset the loss of small
affiliates? Would this be detrimental to the CrossFit philosophy or would it further legitimize CrossFit as a high
end fitness option?
As Glassman sat at his desk wondering how these
opportunities and potential changes would affect the
CrossFit world, he leaned back in his chair and scanned
the room looking at all of the pictures, posters, and
plaques hanging on his wall. Each one represented something different but all of them contributed to the growth
of CrossFit in their own way. Then he noticed one in particular. It was a small 8 3 10 frame, somewhat lost among
the other flashy pieces, but it carried more meaning than
anything up there. It was a photo of him and the officers from the Santa Cruz Police Department, the original
CrossFit group. He realizes that changes are inevitable,
but the photo reminds him that CrossFit grew from the
dedication, commitment, and loyalty of its community.
Moving forward he would like his decisions to remain
true to those roots and his libertarian approach, because
that is the essence of his success.
of his devout followers, and what would the impact be at
the local affiliate network?
The sport of CrossFit is undoubtedly growing. The
Reebok CrossFit Games are increasing each year in participants, attendance, and revenue. His firm belief that
CrossFit athletes are the “fittest on earth” due to their
well-rounded abilities is something that he would adamantly defend anywhere. With the Rio 2016 Olympic
games approaching, he cannot help but dream about
CrossFit being an event in future Olympics. The exposure of CrossFit, at the largest stage of worldwide
competition, has the capability to solidify CrossFit as
a major sporting event, not to mention the potential
financial impact. The ability for CrossFit’s dedicated
athletes to have the opportunity to compete for their
countries would be incredible, Glassman thought. But,
for this ever to happen, he knows that drastic changes
would have to take place. First off, in addition to the
International Olympic Committee (IOC), an international governing body would be needed to oversee the
sport [33], undoubtedly limiting his power as CrossFit’s
sole decision maker. Policies and regulations would be
altered and CrossFit staples such as the random nature of
events that the CrossFit Games are known for, amongst
others, would most likely change. Is this something that
he, personally, is willing to do to grow the sport? Can
the sport of CrossFit survive and grow on its own? What
would the impact be at the national and local levels with
the radical changes that would likely occur?
Glassman’s thoughts then reverted to CrossFit, Inc.’s
affiliate business model and how current trends could
impact the company’s growth. How could they address
some of the criticism surrounding CrossFit and how
would potential remedies impact the company financially? For example, should CrossFit, Inc. mandate continuing education for coaches and do they charge for
this, or do they go in the opposite direction and invest
in their coaches, in an attempt to increase the competency at each affiliate? Lastly, his attention turned
to how he should handle the issue of large corporate
CrossFit gyms, such as Boston’s Reebok CrossFit Back
Bay, who operate full-service, state-of-the-art boxes.
[34] Since the beginning, the “Garage Gym,” a stripped
down, rather unsightly facility with only the essential
equipment needed for a hard-core workout, has been
the standard. Allowing corporate companies to open
“globo-gym” type facilities with full service amenities
such as locker rooms and all hours’ access could change
the landscape of CrossFit affiliations as they currently
exist. Even if these facilities stay true to CrossFit’s roots
(equipment, loud music, etc.), what would the effects be
1. You don’t have to be young or in great shape to try
CrossFit (CrossFit is for beginners, experienced athletes, the
ft, and the un-ft)
2. CrossFit works out your mind as well as your body (a
common reason for gym cancellation has to do with mindset
of the member—CrossFit defeats this by training the mind to
work through soreness and fatigue)
3. CrossFit has a strong connection to law enforcement and
military ofcials (CrossFit is popular with police and military
specialized teams across the country)
4. CrossFit commemorated a set of workouts to fallen soldiers (common in boxes around the world—these workouts
are named in honor of fallen soldiers who were CrossFit
followers)
5. CrossFit gyms have exclusive owners (in order to open up
your own CrossFit ‘box’ you need more than cash—you will
need to write an essay, complete an application, pay a yearly
fee, and complete instructor training courses; this enhances
the quality of gyms across the board)
6. CrossFit offers a ‘Kids’ program (parents can bring their
kids to a growing number of the gyms)
7. CrossFit has a Paleo Diet kitchen on premises (for member
convenience—works like a subscription service at many of
the boxes)
8. CrossFit is 60% female (there are about 6 million CrossFit
women members)
Exhibit 9 Eight Things You Probably Didn’t Know about Crossft
Source: http://www.interesticle.com/fitness-and-health/8-things-you
-probably-didnt-know-about-crossfit
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
C-78 Part 4: Case Studies
Affiliates Affiliates Affiliates
Crossfit, Inc. Growth Contributors
Crossfit, Inc.
Crossfit, Games
– Mass Audience
– Worldwide Exposure (ESPN)
Technology/Social Media
– Trophies of Surplus Enjoyment
– Fascination/Envy
Participants/Athletes
“3rd place”
Exhibit 10 CrossFit, Inc. Growth Contributors
26
2822
3
44
4433
12
160
857
Canada
ed States
Mexico
VE
157
138
204
2637
15
90 420
7
517
59 118
22
23
AO
NA
ZA
CD KE
ET
SD
NG
ML
DZ LY E
SA
PK
India
MM
China
MN
Russia
KZ
UZ
UA
IT
ES
FR
UK
SE
PL
JP
TH
Indonesia
Austra
NZ
TR
IR
PE Brazil
AR
B
Exhibit 11 Worldwide CrossFit Box Locations Map
Source: https://map.crossfit.com/
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Case 5: CrossFit at the Crossroads C-79
NOTES
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2. “Libertarian.” Merriam-webster.com.
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3. Bowles, Nellie. “Exclusive: On the Warpath
with CrossFit’s Greg Glassman.” Maxim.
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10 Apr. 2016.
4. Alfonsi, Sharyn. “King of CrossFit.” CBSNews.
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5. Kuhn, Steven. “The Culture of CrossFit: A
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13. Lieberman, Bari. “Extreme Athletes and
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(15 Aug. 2014) Web. 16 Apr. 2016—“Apparently,
crisp pork belly isn’t just a favorite of the
casual CrossFitter; the elite athletes love
it, too. Four-time winner Rich Froning told
me that he averages about a pound or two
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24 Apr. 2016 contributions. The emphasis
of self-sacrifice and the actions of helping
and honoring others that affiliates engage
in is an appealing feature that can attract
new members who want to be a part of
something that has a deeper meaning.
20. Oldenburg, Ray. The Great Good Place. New
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21. Burke, Daniel. “Millennials Leaving Church
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23. Duggan, Maeve; et al. “Social Media Update
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(10 July 2012). Web. 24 Apr. 2016 http://
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25. “Why CrossFit Dominates Social
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26. Krier, D., and Swart, W.J. “Trophies of
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28. Tabata Times. “How Fast Are The CrossFit
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29. (Source:http://www.startribune.com
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30. (Source:http://finance.yahoo.com
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=AwrC0wxxrSxXzVEAkNqTmYlQ;_ylu
=X3oDMTBzcDJ2Y28yBGNvbG8DYm
YxBHBvcwMxMwR2dGlkAwRzZWMDc2M-)
31. (Source:http://www.franchisetimes
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32. (Source: Arcadia Fitness London by Jaclyn
Caims, 2013, Richard Ivey School of Business
case version 2014-04-23.
33. (Source: http://www.goodlifefitness
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34. Source: https://www.lafitness.com
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35. (Source: http://investor.planetfitness
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/default.aspx)
36. (Source: http://www.goldsgym.com
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37. (Source: http://www.24hourfitness
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38. (source:http://finance.yahoo.com/news
/popular-exercise-class-took-over-162700512
.html;_ylt=AwrC0wxxrSxXzVEAidqTmYlQ;
_ylu=X3oDMTBya2hmZ3R1BGNvb
G8DYmYxBHBvcwM2BHZ0aWQD
BHNlYwNzYw–)
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47. IBISWorld Industry Report 71394 Gym,
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48. The CrossFit Journal, by Emily Beers,
August 2014.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.