Fitness company Peloton was one of the big winners during the pandemic of 2020 when many exercisers had to find new workout alternatives as gyms and fitness centers closed. However, there are more fundamental and lasting reasons that Peloton has seen such great success. Students could engage in a discussion on this case by first reflecting on what factors they and other amateur athletes consider priorities for a good workout experience. Guiding the discussion towards the social aspects of modern fitness will support the key focus of this case. Other points of discussion could be the challenges busy exercisers face, such as finding time (including travel to a fitness center), keeping motivated, and coordinating with other fellow exercisers. In evaluating the Peloton approach, students could be asked to compare the pros and cons of the Peloton approach compared to more traditional in-person fitness activities. Discussion could follow with suggested marketing messages to enhance the pros and mitigate the cons.

1.What other products or services benefit from the "network effect?" What strategies can companies pursue to more effectively exploit this phenomenon?

2.Peloton has a reputation of being a product for rich people. Beyond lowering their prices, what strategies could Peloton employ to broaden their appeal?