Headspace is a mobile app that provides meditative and mindfulness lessons to people around the world. Founded in 2006 by Andy Puddi-combe, a former marketing executive and Buddhist monk, this firm’s product is one of the first meditation apps; today, Headspace is a leader in mindfulness and mental training worldwide. Improving the health and happiness of the world is the firm’s mission. Many people are benefiting from Headspace’s efforts. As of late 2021, the app had reached more than 68 million users in 190 countries.

The app is easy to use. After setting up an account, the customer receives meditation and mindfulness exercises for that day. The exercises appear in three categories: Start your day, Your afternoon lift, and At night. The day we downloaded the Headspace app, while writing this feature, the Start your day section contained three videos to choose from: Take 5 Cleansing Breaths (1 minute), Creating Balance in a Busy World (3–7 minutes), and Let Go of Control (2–20 minutes). You can also explore Headspace’s vast library of lectures, video guides, podcasts, and other material. The categories of material include Guide to Sleep, Parents and Kids, Mindful Eating, Unlocking Creativity, Student Essentials, and more. After a free trial, the app costs $69.99 per year. Puddicombe, who has a calm and soothing voice, narrates many of the video lessons.

Headspace has three revenue sources: the subscription service detailed above, business-to-business (B2B)

programs to teach mindfulness to the employees of businesses, and Headspace Health, an FDA-approved wellness program. The B2B program, called Headspace for Work, allows a company to offer its employees unlimited access to the headspace app, plus exclusive experiences tailored to a business’s needs. Headspace Health is the firm’s newest initiative, an effort through which it seeks to pioneer new ways to incorporate mindfulness into digital medicine.

Its business model guides Headspace’s actions.

Recall that a business model is a firm’s plan for how it creates, delivers, and captures value for its stakeholders.

Here is how Headspace approaches each of these tasks.....

Discussion Questions:

1. Do you think Headspace’s business model is sound? If you could make any changes to the firm’s model, what would they be?
2. To what degree does Headspace’s business model reflect the attributes of a sound business idea described in Chapter 2?
3. Would you pay for access to Headspace’s app? Why or why not?
4. Do some additional research on Headspace. Complete the Barringer/Ireland Business Model Template for the company after completing your research.