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Case Solution for Classtivity Payal's Pirouette

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Get the Classtivity Payal's Pirouette Case Study Solution and Analysis by Jeffrey J. Bussgang, Olivia Hull | Case ID: 9-817-002. We guarantee that this case solution is 100% original, official, and not AI-generated. It is a plagiarism-free, complete, and well-structured solution, perfect for exam preparation, assignments, and research.

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5 -8 1 7 -1 0 5
MARCH 20, 2017




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TEACHING PLAN


Classtivity: Payal’s Pirouette

This teaching plan is designed to be used in conjunction with the case “Classtivity: Payal’s




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Pirouette,” HBS No. 817-002, to help faculty deepen student comprehension of business issues and
energize classroom discussion. This teaching plan includes these sections:

• Synopsis ....................................................................................................................... 1
• Teaching Objectives ................................................................................................... 2
• Suggested Readings ................................................................................................... 2
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• Assignment Questions ............................................................................................... 2
• Roadmap for Discussion ........................................................................................... 3
• Discussion Plan ........................................................................................................... 3
• Wrap Up ...................................................................................................................... 9
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• Board Plan ................................................................................................................... 11


Synopsis
A few months after launching a new fitness technology product, the small staff of New York start-
up Classtivity gathers on a Saturday in April 2013 to decide the future of the company. After executing
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a difficult product pivot from a fitness class search engine to a month-long fitness pass valid at different
New York City fitness venues, Classtivity is finally generating revenue and enthusiasm among
customers. But cofounder and CEO Payal Kadakia has some doubts. While customers seem to love the
offering, the fitness studios are less enthusiastic. Efforts to get customers to return to the studios after
their monthly packs expire disappoint. Kadakia and her team are split over the right course of action
going forward, but ultimately the decision will be Kadakia’s: continue to iterate on the current product
or pivot once again to a new business model?
Do

, 817-105 Teaching Plan—Classtivity: Payal’s Pirouette




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Teaching Objectives
The case was developed for Launching Technology Ventures, a second-year MBA course at Harvard
Business School designed for students pursuing careers at technology start-ups, established companies,




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and venture capital firms.

The case allows students to:

 Investigate early signs of product-market fit in a start-up environment

 Evaluate product testing models using techniques such as exposing early customers to
a minimum viable product (MVP) and getting their feedback




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 Calculate user economics and consider their implications

 Consider the benefits and risks of decisive product pivots versus continued
experimentation

 Create strategies that develop a robust, two-sided marketplace


Suggested Readings
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The instructor may refer to the following readings as preparation for class or assign them as
supplementary material:

• Noam Bardin, “What Is a Startup CEO’s Real Job?” LinkedIn, January 3, 2015,
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http://tinyurl.com/z97pzxa.

• Scott Gerber, “When Is It Time to Pivot? 8 Startups on How They Knew They Had to
Change,” ReadWrite, October 18, 2012, http://readwrite.com/2012/10/18/when-is-it-
time-to-pivot-8-startups-on-how-they-knew-they-had-to-change/.

• Steve Blank, “Do Pivots Matter?” SteveBlank.com (blog), January 14, 2014,
https://steveblank.com/2014/01/14/whats-a-pivot/.
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• Charles Ngo, “Persist or Pivot: Deciding What to Do with a Failing Campaign,”
CharlesNgo.com (blog), June 14, 2013, https://charlesngo.com/losing-money-how-do-
you-know-to-keep-going-or-to-pivot/.


Assignment Questions
1. The first pivot, from the search engine, called Classtivity, to the monthly packs, known as
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Passport, seemed like an obvious choice. Can you think of a series of experiments and/or
minimum viable product (MVP) tests that the team might have conducted that could have
saved them 18 months of work building the search engine?

2. Evaluate the Passport’s early results (case Exhibits 3, 6, and 9). Assess the unit economics. How
would you assess the value proposition for the user and the studio? How sensitive are the unit

2

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Type
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