Strategy question
Given the COVID-19 situation, cult fit has a 6-month runway for its business. How would you extend the runway to 18 months?
- CasaOne
- Strategy
- Hard
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What this question tests
Strategic crisis response: can the candidate propose concrete, prioritized levers to extend runway under a real, time-bound constraint.
How to approach it
- Clarify the constraint: extending runway from 6 to 18 months means either cutting burn by roughly two-thirds, raising new capital, or both.
- Assess the market context: COVID-19 shut down in-person fitness, so cult.fit's core studio business collapsed overnight, forcing a pivot.
- Identify the company's advantage to lean on: existing user base, trainer network, and brand trust that could shift to a digital product.
- Propose options: pivot quickly to at-home digital fitness content and equipment, cut non-core costs like studio leases, and raise a bridge round if the digital pivot shows early traction.
- Recommend prioritizing the digital pivot first since it preserves revenue and the core asset, the trainer relationships, while cost cuts alone only slow the burn.
- Flag risk: a rushed digital pivot could underperform if the at-home fitness market is already crowded, so recommend fast, cheap experiments before full commitment.
What a strong answer includes
- Grounds the answer in what actually happened in this space, fitness companies pivoting to at-home digital and app-based content during COVID lockdowns.
- Distinguishes cost-cutting levers (studio leases, headcount) from revenue-preserving levers (digital pivot) and sequences them correctly.
- Flags competitive risk in the pivot, since digital fitness apps proliferated fast during this period, rather than assuming the pivot is a guaranteed win.
Common mistakes
- Proposing only cost cuts without addressing how to preserve or grow revenue.
- Ignoring the competitive landscape shift that made digital fitness suddenly crowded.
Likely follow-up questions
- What would you cut first if you needed results within 30 days?
- How would you validate the digital pivot before committing significant resources to it?
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More questions from CasaOne
Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop