Peloton Interactive, Inc.: Connecting to Fitness at Home

內容大綱
On May 24, 2021, Peloton Interactive, Inc. (Peloton) announced its intention to build a new US factory to produce its stationary bicycles and treadmills. The new factory, which would be located in Ohio, was an addition to the company’s investments in its manufacturing facility in Taiwan and its purchase of fitness equipment manufacturer Precor Incorporated. In deciding to invest in its own production facilities to supply exercise equipment, Peloton was in stark contrast to its competitors, who predominantly outsourced production overseas. Would Peloton’s plans to build its own fitness equipment in Ohio help or hinder its ability to fulfill its goal of market leadership?
學習目標
This case can be used in an operations or strategy course for senior undergraduate or graduate students. It can be used to introduce the topics of value chain and vertical integration or to reinforce these concepts. This is also an ideal case to co-teach with a faculty member who examines how strategic choices have an impact on cash flow and the balance sheet.<br><br>The case explores the strategic, financial, and operational implications of vertical integration and onshoring. After working through the case and assignment questions, students will be able to do the following:<ul><li>Examine the operational implications of vertical integration.</li><li>Consider the financial challenges of outsourcing versus insourcing.</li><li>Determine the strategic advantages and disadvantages of having a broader scope within the value chain.</li></ul>
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