Weight Watchers Case Analysis

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The most talked about individual in a company is the Chief Executive Officer (CEO). Most of the companies look to this individual to make executive decisions and they base their operating procedures around what they say and do. Weight Watchers has a problem in the company. The most highly sought after position in the company is up for grabs. The company has reached out to a celebrity to help choose the newest person that will lead them out of declining sales over the past few years. This author will take a look into the company to help with this problem analysis.
Weight Watchers recently had the current CEO to resign. James Chambers has been the CEO since 2013 and has experienced declining sales and memberships ever since.
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Chambers, Weight Watchers has experienced less than stellar earnings. This is in part because of several things. To begin, Weight Watchers is losing business due to the fact that people tend to cling to fad diets and free application on smartphones. “Within the massive $64 billion U.S. weight loss market, pockets of weakness have been pegged to weight loss centers and low calorie/diet foods. That can partly be attributed to the proliferation of smartphone apps, which can help track calories and movement and reduce the need for some consumers to visit a physical center and talk to a coach”. (Kell, 2016) This could also be attributed to diet pills that promise the consumers that they will lose weight with no diet plan and no exercise. These miracle pills shortly fizzle out and consumers are looking for the next big thing again. This is where Weight Watchers will need to develop a game plan for getting its customers to come…show more content…
Weight Watchers needs to make a radical change. It is not just a CEO that the company needs, it is an entirely different campaign. So for the short term, Weight Watchers needs a leader who can come in and make that radical change that is needed. The three people who are currently serving as executives for the company have two major issues on their plates right now. They need to find a leader. Relying on Oprah Winfrey to find a new CEO should not be an option. A total makeover must happen and new fresh CEO is the first step. After that stage is complete, a new business plan should be put in place to bring subscribers back to the company. “First of all, the company gained massive credibility, as its diets have been tested numerous times and have been proven to work. Secondly, because of the reliability of its products, Weight Watchers has been able to attract millions of customers who are very similar to the loyal fan base of a popular rock band. On top of this, I believe that much of Weight Watchers ' strengths lie in the fact that it backs its diets and plans up with scientific information, which again builds to its credibility. And finally, I admire the fact that Weight Watchers is not presenting itself as a "magic pill" manufacturer” says writer Beurs Advies from Seeking Alpha.com. (Advies, 2014) There are other ways that the company could produce better earnings if they would put
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