1. Identification of a strategic issue (Generic business strategies, value proposition, value chain analysis, business model canvas, etc.)
Unprofitable
After the initial influx in demand from the Covid Pandemic, Peloton has recorded net losses for the past four quarter (starting Q3 2021)
These loses have continued to grow quarter over quarter
TTM Net Income: -$1.14 billion
Excess inventory
Q2 2022 $1.54 billion in inventory
Low inventory turnover ratio
This implies low demand and overstated growth expectations
2. External analysis of industry and macro-environment (Porter’s 5 forces, industry critical success factors, strategic group, industry life cycle, PEST, SWOT, etc.)
3. Internal analysis of the firm (RBV, value chain, business model canvas, generic business strategies, SWOT analysis, core competence, mission, vision, diversification, etc.)
4. Analysis of competitors (1st mover, multipoint competition, disruptive innovation)
Peloton competitors-
5. Formulate/select strategic alternatives
External analysis of industry and macro-environment (Porter’s 5 forces, industry critical success factors, strategic group, industry life cycle, PEST, SWOT, etc.)
Work on Question 2 – External analysis