Going through a dynamic market change with increased user growth and competition, the digital fitness scale-up Freeletics GmbH (Freeletics) found itself at a crossroads in September 2020. Equipped with fresh funding of US$25 million, the chief executive officer and the business development lead discussed the path forward for the company. Its current successful offering, a digital fitness coaching app, promised continuous growth. However, changing market conditions during the COVID-19 pandemic, new user behaviours, and emerging technologies offered new opportunities—and new competition. Consequently, Freeletics had to diversify its business model with new offerings to strategically renew its competitive advantages while keeping the existing successful business growing. The chief executive officer and business development lead had to find an organizational approach that would allow them to start a new entrepreneurial journey without neglecting what they had already built.

Going through a dynamic market change with increased user growth and competition, the digital fitness scale-up Freeletics GmbH (Freeletics) found itself at a crossroads in September 2020. Equipped with fresh funding of US$25 million, the chief executive officer and the business development lead discussed the path forward for the company. Its current successful offering, a digital fitness coaching app, promised continuous growth. However, changing market conditions during the COVID-19 pandemic, new user behaviours, and emerging technologies offered new opportunities-and new competition. Consequently, Freeletics had to diversify its business model with new offerings to strategically renew its competitive advantages while keeping the existing successful business growing. The chief executive officer and business development lead had to find an organizational approach that would allow them to start a new entrepreneurial journey without neglecting what they had already built.