Fitness Marketing for Peloton. Opportunities and Challenges for Growth (eBook, PDF)
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Seminar paper from the year 2021 in the subject Business economics - Market research, grade: 1,0, Hult International Business School, language: English, abstract: The management report focuses on the fitness industry, specifically analyzing the impact of the COVID-19 pandemic on the industry's profitability and identifying trends and opportunities for future growth. The report is divided into two parts, with the first part exploring the fitness market in general by examining the overall market composition and identifying trends and impacts on profitability using the STEP framework and Porter's...
Seminar paper from the year 2021 in the subject Business economics - Market research, grade: 1,0, Hult International Business School, language: English, abstract: The management report focuses on the fitness industry, specifically analyzing the impact of the COVID-19 pandemic on the industry's profitability and identifying trends and opportunities for future growth. The report is divided into two parts, with the first part exploring the fitness market in general by examining the overall market composition and identifying trends and impacts on profitability using the STEP framework and Porter's 5 forces. The report identifies the rise in health awareness among the population and the upsurge in the popularity of exercising at home during the pandemic as opportunities for the industry's future growth. The second part of the report focuses on Peloton, a brand in the fitness industry that has gained significant market power. The report provides an introduction to the company, defines its business model, and analyzes its strengths and weaknesses. Peloton is the world's largest interactive exercise platform, with more than 3 million active users. The company was the first to provide linked, technology-enabled fitness programs as well as the live streaming of immersive, instructor-led boutique courses that could be viewed from anywhere at any time. The report also examines the resources and capabilities that have enabled Peloton's growth in the fitness market. Despite the COVID-19 pandemic causing a decline in the fitness market, the report highlights that the trend towards home workouts with on-demand content has ensured Peloton's position in the highly competitive market. However, the lifting of COVID-19 restrictions and the return to in-person gyms and training programs have caused Peloton's demand to decrease. As a result, the brand's stock price has decreased by x% within the last year, and it has momentarily paused manufacturing. The report suggests that Peloton needs to implement strong strategies to stay competitive and build resilience in global markets. These strategies have been applied on the Blue Ocean Strategy Model and consist of changing the pricing model of Peloton, creating a new product called the Peloton Watch to train independent of time, location, and equipment, and aiming for geographic expansion in countries with a similar demographic target group. Overall, the report highlights the challenges and opportunities facing the fitness industry and provides recommendations for Peloton to remain competitive and sustain its market position in the future.
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