The selected article for review is titled “Building a Brand with Soul: Inside SoulCycle’s Success” by Kathryn Scott that is published in The Intercollegiate Finance Journal on January 27, 2016.
SoulCycle is a successful business venture that was initiated by Julie Rice and Elizabeth Cutler in 2006. In particular, Julie Rice before opening SoulCycle had been working in the fitness industry and realized that there is a need for customized fitness centers that could engage customers more and let them enjoy the experience at reasonable prices. Unlike other companies in the market, SoulCycle does not charge a membership fee to its clients, and they can sign up for classes and rent the required gear for it. The strategy of the company worked out well, and soon the company became a successful business strategically (Scott 7-8). The company experienced great success in its last ten years of operations, and the company recently announced its plans to go public. The company’s success has been the outcome of its strategic branding decisions that have been effective to influence customer behavior and create (Scott 1).
The article highlights the importance of strategic branding by the business that creates a strong sense of association among customers for a brand and the company holding that brand. By targeting a specific segment of the market, the company can deliver services that are highly appreciative and customers are willing to pay a higher price for its programs for the value that they receive or perceive to receive . The company’s strategic move could be considered as an attack on its competitors that have been following a traditional model to fitness and SoulCycle offered a new model for running such business in the book (Williams 131).
The article highlights the importance of an organizational strategy that has assisted SoulCycle in achieving high brand recognition and acceptance among customers. As suggested by Williams (112) for companies to achieve sustainable competitive advantage it is important to develop a business idea that is difficult to imitate and it is based on valuable resources that are not available to others. In the competitive market of fitness, it was important for SoulCyle to have innovative ideas that could help the business attract customers who are looking for effective health and fitness programs and at the same time be able to enjoy their experience while working out. As highlighted in the article SoulCycle can generate high business turnover by utilizing its valuable resources effectively (Williams 112).
The company has successfully developed a sense of community among its members who appreciate the strategy that the company has adopted for its business. By localizing its strategy to serve customers in a particular market the company has been able to create a buzz for its brand and business. It is important for the business to understand the current market situation and develop its core competencies that could give the company a competitive advantage (Williams 114). SoulCycle successfully created its market in the major markets across the US by adopting strategies that maximize customer satisfaction or utility.
Customers are willing to pay a higher price for classes arranged by SoulCycle that implies that the service and experience offered by the company are valuable to customers. The value proposition of business is crucial for achieving a long-term sustainable advantage over other companies. The company has adopted focus strategy and offers differentiated services to its customers that allow it to gain competitive advantage (Williams 127). By identifying and addressing strategic reference points the company can higher customer turnover and revenues (Williams 117). It has been the case of SoulCycle as it offered a unique experience to customers and focused on offering services that were innovative.
Works Cited
Scott, Kathryn. Building a Brand with Soul: Inside SoulCycle’s Success. 27 January 2016. Web. 25 April 2016 <http://theifj.com/building-a-brand-with-soul-inside-soulcycles-success/>.
Williams, Chuck. MGMT. Mason: Cengage Learning, 2016.
