WeightWatchers: Promoting Weight Health

In December 2023, the 60-year-old weight management industry stalwart WeightWatchers announced the launch of WeightWatchers Clinic, which incorporated GLP-1s , a new class of prescription weight-loss medications, into the company's portfolio of products and mobile app experience. The company's embrace of prescription medications for weight loss represented a bold strategic evolution. Since its inception, WeightWatchers had promoted peer-to-peer support coupled with science-based behavior modifications for weight loss, rooted in the idea that weight management was fundamentally about establishing healthy diet and exercise habits. While the company's core business would continue to center on behavior modification, WeightWatcher's new CEO Sima Sistani believed an expanded "toolkit" could be a game-changer for people for whom the company's traditional weight-loss program was inadequate and who required other kinds of support. Sistani, a Silicon Valley veteran, had stepped into the CEO role at a critical moment for the company. Revenue had been declining for years due to slowing member subscriptions, a lackluster digital app, and increasing competition from a host of players. Now, a year and a half into her tenure, revenues continued to trend downward. As she looked ahead, Sistani pondered how to strike the right balance between investing in the "core" business and growing the nascent clinical offering. She recognized that, for the iconic company, there was a delicate balance to be struck between ramping up new products and services and winding down legacy offerings such as weekly in-person meetings, while also fortifying the digital app. She wondered if there were synergies that might offer new avenues for growth in a dynamic market.

• Entrepreneurial business strategy
• Resource allocation
• Competitive strategy
• Strategy
• Sales