How Peloton Built the Foundation for Enduring Success (B)

This case is a continuation of "How Peloton Built the Foundation for Enduring Success (A)," CaseWorks case #210404A. Connected fitness company Peloton enjoyed triple-digit growth every year between FY 2014 and FY 2020, posted its first positive operating cash flow in FY 2020, and saw its market capitalization exceed $40 billion following its September 2019 IPO. Despite growing competition, founder and CEO John Foley believed Peloton's best days lay ahead. But was the company's business model robust and resilient enough to realize its founder's aspiration? The B case in this series outlines the strategic steps taken by the company both at inception and throughout its first decade to ensure a lasting consumer value proposition.