FLIP FACTORY INC.

Ameena Fatima Shah, Ayesha Khalid, Ghassan Farhan, Momin Farooque

and Shayan Usman
Flip Factory
• Fitness Centre based in the North East of Calgary, Canada
• Darlene Traviss
• CEO and Owner
• Aim to innovate the landscape of gymnastics
• Create an inclusive environment of ‘fun’ fitness
• Make gymnastics fun and challenging for everyone
• Also offers circus activities, parkour, trampolining, demonstration activities etc.
Mission Statement
“Create an exceptional environment and offer cutting-edge gymnastic-based
programs that captivate, excite, and challenge our members. Create a
community of like-minded individuals who understand and support the value
of challenging, yet non-competitive, programs. Develop a culture of
understanding, acceptance, and support for all who choose to be a part of
Flip Factory and contribute to the organization’s goals and ideals.”
Competitive vs Recreational Gymnastics
• Essentially a two tier system
• Most participants prefer recreational gymnastics, but high level coaching and
programs are reserved for competitive athletes
• Recreational gyms offered less challenges to its participants
• Traviss aimed to fill this market ‘void’
Darlene Travis
• Formerly a competitive gymnastics coach and judge
• Started her own business in 1990
• ‘Rival Programs’
• Aimed to provide quality non-competitive gymnastics programs
• Teamed up with a business partner to open up a new 8000 sq. feet facility
• Eventually had to sell at loss
• Worked in construction for a couple of years
• In 2003, incorporated ‘FitKids’
• Mobile preschool gymnastics
• Eventually sold when Flip Factory took off
Flip Factory
• 3 main programs (Exhibit 1)
• Youth, Teen and Adult programs
• Preschool programs
• Bookings
• New facility
• 10,000 sq. feet
• High level coaches (former Cirque Du Soleil performers)
• Goal was to continuously meet customer demands and keep course offerings as flexible
and dynamic as possible.
• Tot Spot for younger siblings
• Coffee shop
Attracting Participants

• Current technique:
• Word of mouth
• Treated newcomers and current clients as well as possible
• Transparency and openness is key
• Extensive marketing has high new participants, but also has high turnover
Competitive Market
• Current demand for recreational gyms is high
• Calgary 2006-2011
• Calgary’s population has increased by 10%
• Average income, more than the national average
• Gymnastics considered a good activity by parents
Risk Management
• Extensive insurance coverage required in case of liabilities
• Previously covered under Alberta Gymnastics Federation
• Now, a separate policy to increase coverage
• High focus on safety culture
• Equipment inspected daily
 Moving Forward
• Coaching staff
• Should Traviss leverage her team by offering further integrated programs
• Location
• Move beyond Calgary? Tap into team’s international network? Replicate current facility?
• New program offering
• Performance space?
• Financing
• Target fundraisers? Sponsorships?
• Lease
• Current lease expiring in 2 years.
• Spend money on new, self owned land?
INPUT STAGE
External Factor Evaluation (EFE) Matrix
External Factor Evaluation (EFE) Matrix
Opportunities
• Coaching Staff • New Program Offerings
• Potential of the coaching staff being underutilized • Development of circus arts
• Retaining the team • Adding a performance component
• Leveraging them by expanding offerings and
performance opportunities • Sponsors/Outside Fundraising
• Networking • Marketing/Advertising Campaigns
• Maintenance of relationships helped with the
development of new ventures • Increasing demand for gymnastics in
• Business partner helped attract number of Calgary
coaches • Current demand for recreational gymnastics
• was considered high.
Location
• • Seen as a good activity by parents for their
Replication of the present facility
• Keep the current location kids
• • Influx of young families in the city
Expand beyond Canada
External Factor Evaluation (EFE) Matrix
Threats
• Uncertainty of growth
• Current space for Flip Factory had limited capacity and geographic reach
• Finding a large industrial building was both difficult and costly
• Growing competition in similar area
• Northeast Calgary
• Exhibit 8
• Potential injuries to members
• Unclear coverage policy
• Finding qualified staff
Internal Factor Evaluation (IFE) Matrix
Internal Factor Evaluation (IFE) Matrix
• Biggest strength – Client Network
• Other major strengths included
• Talented employees
• Products fill gap in market
• Company’s ability to retain customers
• Biggest weakness - no business partner to share the burden with
• Coupled with want of balance b/w work and personal life
• Other notable weaknesses:
• High cost of maintaining and delivering unique product
• Limited number of facilities
Competitive Profile Matrix (CPM)
You Calgary Gym. Centre Altadore

Critical Success Factors Weight Rating Score Rating Score Rating Score
Diversity of programs 0.09 4 0.36 3 0.27 3 0.27
Diversity of target market 0.08 4 0.32 3 0.24 4 0.32
Location 0.09 4 0.36 4 0.36 3 0.27
No. of locations 0.09 2 0.18 2 0.18 2 0.18
R&D 0.08 3 0.24 3 0.24 3 0.24
Employee talent 0.09 4 0.36 4 0.36 3 0.27
Employee dedication 0.09 4 0.36 4 0.36 3 0.27
Customer Loyalty 0.09 4 0.36 2 0.18 2 0.18
Marketing 0.06 1 0.06 3 0.18 3 0.18
Product Quality 0.08 3 0.24 3 0.24 4 0.32
Top Management 0.07 3 0.21 3 0.21 3 0.21
Price Competitiveness 0.09 3 0.27 3 0.27 4 0.36
Totals 1.00 3.32 3.09 3.07
Competitive Profile Matrix (CPM)
• A competitive profile matrix (CPM) displays important strengths and
weaknesses of several competitors in an industry at a glance

• All three companies rank similarly in a lot of the major factors

• Flip Factory majorly lacks is marketing – relies on word of mouth and

extensive network

• Looking at scores the company is doing better than competitors

Perceptual Map
MATCHING STAGE
Strategic Position and Action Evaluation
(SPACE) Matrix
• Financial Position (refer to exhibit 1)
Strategic Position and Action Evaluation
(SPACE) Matrix
• Competitive Position
• Lots of indirect competition that have market share
• Highly customized service offering with high level of variety
• Leased space has coffee shop, a place for toddlers and adults
• Main aim is to develop customer networks and so far, Traviss has been very
successful at this
Strategic Position and Action Evaluation
(SPACE) Matrix
• Stability Position
• Inflation rate consistently at 3% in Calgary over the last year
• Earning rate greater than national average in Calgary
• Expensive to set up new business
• Risk of injury to clientele and coaches
• No direct competitors per se
Strategic Position and Action Evaluation
(SPACE) Matrix
• Industry Position
• Increasing population of Calgary
• Untapped recreational gymnastics markets
• Substitutes available, but no company offers the same variety in a similar
business model to Flip Factory
Strategic Position and Action Evaluation
(SPACE) Matrix
Strategic Position and Action Evaluation
(SPACE) Matrix
Strategic Position and Action Evaluation
(SPACE) Matrix
• The space matrix suggests that aggressive marketing strategies are most
appropriate for Flip Factory
• These are:
• Backward, forward, horizontal integration
• Market penetration
• Market development
• Product development
• Diversification (related or unrelated)
Internal-External (IE) Matrix
Internal-External (IE) Matrix
• Youth/Teen Programs are the biggest money maker for Flip Factory. They overlap
in quadrant I and IV of the IE Matrix. Over here, aggressive strategies are most
effective
• Preschool off-site programs are suited to ‘hold and maintain’ strategies (market
penetration and product development)
• Birthday parties are suited to ‘harvest or divest strategies’ (retrenchment or
divestiture)
• This however, can be opposed if you refer to data in exhibit 2
SWOT
• SO Strategies
• Use strong financial position and strong national and international networks to expand
globally
• Use experienced and qualified coaches to promote and develop circus arts in Canada
• Use market position to obtain sponsors

• ST Strategies
• Focus on their unique product offering can lead to uncertainty of growth to be diminished
• Employees that are highly experienced and trained can help avoid freak injuries
• Use international and national networks to broaden search for coaches
SWOT

• WO Strategies
• Purchase own land in order to run own facility instead of leased

• WT Strategies
• Change business model to a partnership to help with expenses
• Transform firm to a limited liability company
 Grand Strategy Matrix
Rapid Market Growth Strong Competitive Position
and Rapid
Quadrant II Quadrant I • Market Growth
• Market development
• Market penetration
youth and teen
• Related diversification
programs

Weak Competitive Strong Competitive

Position Position
off-site
preschool
Weak Competitive Position programs
birthday parties
and Slow Market Growth Strong Competitive Position
• Retrenchment and Slow Market Growth
• Related diversification • Related diversification
• Divesture Quadrant III Quadrant IV • Joint Ventures

Slow Market Growth

Grand Strategy Matrix
• The Grand Strategy Matrix categorizes a company’s SBUs into its 4 different
quadrants and helps to create alternate strategies based on which
quadrants they lie in

• Birthday parties lie in between the 3rd and 4th quadrant so both strategies
could apply
DECISION STAGE
Quantitative Strategic Planning Matrix
(QSPM)
Quantitative Strategic Planning Matrix
(QSPM)
Quantitative Strategic Planning Matrix
(QSPM)
• According to the QSPM Matrix the alternative that we would chose would be to
opt to build a duplicate new facility
Challenges of a new facility
• Uncertainty of growth, since it would be new facility there is no certainty on the
flow of customers
• Growth of competition (As shown in Exhibit 8)
• Potential injuries to members participating can lead to lawsuit
• The search for qualified coaches is difficult for the programs being offered at Flip
Factory
Solutions
• Replication of present facility into a second location can increase the scope of the
coaches, as they could expand their portfolio
• Increase diversity by offering circus a part of a new program
• Getting sponsors outside fundraising, helping her expand the business venture
• Aggressive marketing and advertising campaign