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Product cover image for Peloton Interactive, Inc.: The Rough Road to Turnaround

Peloton Interactive, Inc.: The Rough Road to Turnaround

David Wood, Cam Buchan

Product #:W32687
Supplier:Ivey
Discipline:Finance, General Management
Setting:Germany, Taiwan, United States, China, 2022
Details:Case (PDF) • 9 pages • 2023-03-23

Subjects:

TurnaroundsFinancial restructuringOrganizational transformationInsolvencyFinance and investing

Industries:

Media, entertainment, and professional sports

Geography:

EuropeNorth AmericaAsiaGermanyUnited StatesChina
Your Price:$9.71

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Until 2022, Peloton Interactive, Inc. had been focussed on keeping up with unprecedented demand. However, by early 2022, the company’s fortunes had turned. Despite layoffs, cuts to capital spending, and price reductions, more dramatic changes were required. The company appointed a new chief executive officer in February 2022, who wrote a letter to shareholders three months later outlining the steps taken to stabilize cash flow, get the right people in the right roles, and return the company to profitability.

Learning Objectives

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 a turnaround or to reinforce the fundamentals of managing a business in crisis. This case is also an ideal case to co-teach with a faculty member teaching finance, restructuring, or crisis management. In this case, students will be challenged to critically examine the plan to revive Peloton Interactive, Inc. If they believe the new chief executive officer’s plan is insufficient, the students will have to determine a new course of action to revive the company. After working through the case and assignment questions, students will be able to
  • assess the impact of changes proposed on a destressed company;
  • forecast the impact of future changes to a business in crisis; and
  • develop a comprehensive plan to revive a business in crisis.
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Case Study: Peloton Interactive, Inc.: The Rough Road to Turnaround (English version) | Ivey Publishing