Peloton Interactive, Inc. is an American exercise equipment and media company based
in New York City.
An important part of many company’s plans for recovering from the COVID crisis is
setting the right priorities and managing expectations for how and when it can bounce
back. Peloton, recently reported a first quarter loss of $757 million for 2022, is a good
example. Earlier this year the company announced it was temporarily halting
production of its equipment until demand caught up with supply. "Peloton stock has
been battered over the last few months, dropping more than 60% year to date as
investors try to reconcile the company’s role in a post-pandemic environment,"
according to Barron’s (financial media organisation). Peloton’s initial efforts to
communicate about their recovery efforts are providing important lessons for business
leaders when they have to lead their organizations in bouncing back from a crisis.
Questions
In this scenario:
What lessons can Peloton learn about recovering from the COVID crisis with respect
to their platform business model? (3 marks)
What competitor threats do they face? (2 marks)
What changes would you make to their current distribution channel strategy and
design? (2.5 marks)
