Peloton was the darling of Wall Street at the beginning of the pandemic, the stock was riding high. People were willing to pay the high asking price for their products and the company kept growing as they doubled their workforce during the first year of the pandemic. Their situation took a dramatic turn the middle of 2022. They laid off 20% of their workforce or 2800 people, fired their co-founder CEO, and their stock dropped dramatically. Investors encouraged the company to sell out to a bigger company like Amazon, Nike, or Apple.

a.) When things were riding high at the beginning of the pandemic, in what major way did the company apply the concept of Dynamic Capabilities. This change was underpinned by what critical flaw in their business outlook that ultimately backfired and led to their downturn two years later?

b.) How did problems with the supply chain contribute to their issues?

c.) How would you assess the state of the company today, are they back on the right path? Justify your answer.

Answer rating: 100% (QA)

a When things were riding high at the beginning of the pandemic Peloton applied the concept of Dynamic Capabilities by rapidly scaling up their workfo... View the full answer