Peloton Interactive Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Peloton Interactive Inc. Case Solution

Evaluation of Alternatives with Investors Concern

These above alternatives are required to evaluate to get the best solution for the organization to overcome challenges. There are few concerns as Investors consider that the organization start vertical integration that is somehow not acceptable in terms of investments from investors because this strategy start processing the Taiwan manufacturing partnership that might be effect the investor’s acceptability towards the organization. As an Investor concern that Peloton’s Inc. have to look for their own manufacturing in their own state that reduce the cost of shipping and less time consuming that automatically increase the profit ratio. The overall evaluation of alternatives based on investor’s concern because the organization want to engage their investors towards them to make itself as market leader.

Introducing physical platforms for fitness

In the pandemic time the organization earn and generate a huge profit and increase its market share and value with highest percentages. This pandemic factor also increase a new threat for the organization in shape of new competitors because of increasing market in virtual fitness(Nayal, 2022). After the time spends the ratio of profit decrease in the ending period of pandemic. To engage and maintain their stability in the market the organization have to look over the physical terms of the fitness. However, the market capturing and maintain market leadership needs a high number of loyalty towards customers. Peloton’s Inc. considering a limited success after pandemic in their investor’s view, still maintain their investments they have to come up with new physical platforms that maintain and create stability of their business in both sectors physical and virtual.

Start manufacturing own equipment’s in Ohio

Peloton’s Inc. working as a vertical integration with Taiwan. They invest $100 million in Taiwan manufacturing for increasing the production rate and reduce the delay time. The investors of Peloton’s Inc. are not looking happy with this strategy and they start moving away from them. The investors’ concern that vertical integration decrease the profit ratio for the organization in the future and their main concern is to start manufacturing its own equipment’s for their virtual platforms in Ohio. Manufacturing in its own state decrease the cost of shipping because the organization shipped their products by Airfreight for considering a less time consume but it takes a high cost that decrease the investors returns and organization’s profit as well. Own equipment manufacturing in Ohio help the organization to cut-off the cost of shipping and own manufacturing take low cost as compare to Taiwan manufacturing.

Introducing new services in virtual platform

After the pandemic end, the organization face a new challenge of competitors and reducing the market share and profit because of competitors. To reduce this challenge the organization look for new services through their hybrid platforms and virtual fitness. The new services including potential exercise, yoga exercise and others that make their self-alone and above in the market. However, these new services increase the cost of operations of Peloton’s Inc. that gradually increase the subscription prices. The price increase are not acceptable in the market after rise of new competition and this new service also consider a cost of research and market.

Recommendation

The overall analysis of Peloton’s Inc. towards their competition, performance and supply chain. There are few recommendations that the board of directors at Peloton Inc. have to consider to maintain itself as a market leader and engage their investors towards them. First of all, they have to shift their manufacturing plant from Taiwan to Ohio, this consider various benefits own manufacturing in own state reduce the overall cost of supply chain and shipping and consider a less time consuming. Second the investors still investing in the organization after the vertical integration end and own manufacturing starts, this action lead the investors become positive towards organization process. Secondly, according to pandemic end and customer start shifting Peloton Inc. have to place their operation physically with their virtual fitness. The action of physical gym help the organization to lead in both markets virtual, physical, and engage customers towards them. Own manufacturing also help them in starting physical centers by using their own equipment is that consider low cost and high profit. The overall recommendation help the organization to stay present in the market and maintain its market leadership and high profit..................

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Peloton Interactive Inc. Harvard Case Solution & Analysis