Dive Brief:
- The Internet has given birth to a global community of do-it-yourself dieters and health advocates -- people offering advice and support to others who want to lose weight and become healthier.
- The do-it-yourself groups are overwhelmingly free and compete directly with Nutrisystem, Jenny Craig and other traditional weight-loss systems.
- Nutrisystem is responding by altering the core of its business. The company has moved beyond its traditional line of direct-to-consumer sales and has partnered with Wal-Mart.
- The company is also expanding its digital offering.
Dive Insight:
The Web does many things well ... but perhaps the thing it does best is to collect like-minded people into communities. There's simply no way that the weight-loss industry can compete in that area and charge people for the privilege. We think Nutrisystem has made the right move here, and we expect to see more of its products at more retailers soon.