One Last Sprint: The Analytics Behind Peloton’s 6-Month Growth Strategy

Jordan Bean
8 min readOct 27, 2022

A Blend of Analytics & Strategy to Assess Peloton’s Growth and Exit Options

Photo by David Marioni on Unsplash

This is a tough time for many businesses that benefited from a pandemic-driven surge in business. Transitioning from predictable growth, to uncertainty, to explosive growth, back to a steady state leaves supply chains in flux and a high risk of excess inventory.

Peloton is one company that has been all over the map with regard to their stock price, sales, and customer volume. The latest signs point to a challenging environment for them to operate independently — by their own admission, they have a ~6-month window to prove their viability as a company, and otherwise they’ll be forced to seek “strategic alternatives” for their business.

Where could Peloton go from here? What organic growth options exist? Where does Peloton’s value lie? Who are potential strategic acquirers for their business?

Peloton Today: Hardware, Software, Content, and Stores

Peloton primarily makes money on the sale of its fitness products (treadmill, bikes, rowing machines, and more to come) and ongoing subscription revenue for access to its content.

There were few companies better positioned than Peloton to benefit from the shift to digital everything. People sought in-home exercise equipment and digital exercise content. Peloton already had the infrastructure, content, and brand name to meet that demand.

Peloton’s core customers are those that buy their premium-priced equipment and generate recurring revenue with a content subscription. No doubt Peloton has done significant market research to define their target customer, but we can generate insights as well by analyzing the area around their physical store showrooms.

It stands to reason that a company locates their stores near their target customer, and we can use this assumption to help us better understand this target customer. Peloton has 77 stores open across the US, as seen in the map below.

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Jordan Bean

I create original content that connects data, analytics, and strategy. Support my work by becoming a member jordanbean.medium.com/membership