FLIP FACTORY INC.
Birgitte Grøgaard wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality.
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Most participants in gymnastics clubs were recreational; however, most high-level coaches, equipment, and resources at these sites were funneled toward the competitive athletes, who were far fewer in number. Recreational gymnastics was often viewed as a step down. Competitive gymnastics was what coaches and, to some extent, parents and athletes focused on as the preferred route. Few options were available to children who wanted to continue to feel challenged through high-level, non-competitive gymnastics programs. Traviss saw that this dynamic created a void in the marketplace. She believed that recreational members deserved to have great facilities, highly qualified coaches, and opportunities for advancement in the sport. Flip Factory, therefore, aimed to provide customers with quality, non-competitive programs. Traviss also saw a need for programs that accommodated former competitive athletes who wanted a challenge outside the competitive arena and a creative outlet for the skills they had honed.
Flip Factory offered services in three core areas: 1) youth, teen, and adult programs; 2) preschool programs; and 3) bookings (see Exhibit 1). After three years of operation in the new location, Flip Factory had grown from a few hundred to more than 1,500 weekly, on-site