Peloton Value Chain Analysis (Complete Guides)

The analysis is the best way to scrutinize and inquire about a business. Peloton value chain analysis will help you know very much and assist in determining the performance of different activities.

Here I have discussed all steps of chain analysis, primary activities, and secondary activities. Without wasting, let’s move ahead.

Steps in Porter’s Value Chain Analysis

A chain analysis is a process in which we study different factors or activities and their function in our business. This is a helpful analysis as you can look into all internal parts of strategies and learn about the weak areas.

The main objective of chain analysis is a comprehensive study of all factors and activities helping you perform and compete better. It is a short procedure consisting of 4 steps.

Before heading to peloton value chain analysis, let us move towards steps of porter’s value chain.

1.  Laying out the Industry Value Chain

Compare the value chain of your rivals and look for different things, for example, downstream, upstream of industries activities, and value chain at each step.

2.  Compare Firm in a Tale of Two Hedge Funds

Compare the present chain to the alternative and keep a record of the weak area. It will be beneficial for you to make new strategies and take steps to improve your business.

3.  Activities having a High Current Potential Impact on Differentiation

Make a list of customers’ drivers and expectations as customers do not care for the price if their expectations are fulfilled. All they care about is products. As you have seen that people buy apple phones although it is not that functional phone. Apple is famous for its camera performance, and it has become a symbol of social status.

Check  5 Best Tablet or iPad Holders for Peloton Bike you can Consider

4.  Focus more on the Growing Percentage of the Cost

Your primary focus is those areas where you are investing, but it does not add additional costs. Similarly, operation inefficiencies are also subjected.

Background of Peloton

It is also known as the fitness of Netflix, and in 2012 john Foley observed it is better to do workouts under the guidance of an instructor. Moreover, he wanted to neglect the idea of going to the gym.

This is how the idea of the peloton was born, and in 2013 a prototype bike was designed, and further investments were made for making it user-friendly. However, it was not very much cherished in the beginning, but now people love it.

Primary Activities

Primary activities are the central part of peloton value chain analysis as these are designed for increasing value and profile to the company. Following are the 5 main categories of primary activities of peloton bikes. Let us discuss them one by one

1.  Inbound Logistics

It is associated with the storing and spread of information. In the peloton, the input is videos both live and recorded. They have developed their contact with high-class instructors.

They pay them and ask them to give their best services to the customers. They charge high from the customers and get profit.

2.  Operations

The process that transfer inbound logistic into outbound logistic are known as operations. All the classes are recorded, uploaded onto the peloton app, then users who have their subscription get access to these videos.

Moreover, their app is easy to use, has fast speed, and user-friendly interface.

Moreover, they have introduced different packages, and one of them allow all family members to make their account and keep a record of their activities.

Check  7 Places to Install or Put your Peloton And Choose the Best Place?

3.  Outbound Logistic

The terms and processes of dividing the services to the customers are known as outbound logistics. Once the machine is read, it is sold to the channel buyers and final buyers.

Moreover, the scheduling and distribution both are the mains of business considered under outbound logistics. Similarly, wholesalers and retailers are dead under this.

Thus, pay attention to the outbound logistics as these will highly affect your profit.

4.  Marketing and Sales

In this, management sets the budget and takes steps to improve their marketing and sales. How much you customers you will have depends on your marketing skills.

Peloton uses different marketing drills and has gained a large number of subscribers, especially in this pandemic period. Similarly, they do constant analysis and record everything that happpens in their surroundings to update sales strategies.

5.  Services

Lastly, there are services, and they provide online services. Peloton offers many services. You can perform many drills on it under the guidance of top-rate trainers.

Moreover, you can get access to the trainers and discuss your problem with them. Similarly, if you miss an online class, you can attend a recorded class.

Besides videos, the peloton app keeps records of your monthly activities and compares your monthly output to see how far you have come.

Moreover, you can get access to the peloton app with Peloton bike and use its unique features.

Peloton Support Activities

The primary function and aim of support activities are to support primary activities, so overall, there is a tremendous impact on the growth of the business, and the company can grow.

Following are the four categories of support activities

  1. Infrastructure
  2. Humans source management
  3. Technology development
  4. Procurement

Infrastructure

It includes different activities, for example, management, finance, accounting, legal services, planning, quality management.  They deliver pelotons by following all precautionary measures.

Check  Verizon Value Chain Analysis - Complete Guidance

Other activities are online, and payment is also online, so they maintain high security. However, planning is done at the corporate level, and for legal activities, the business unit level is preferred.

Human Resource Management

It is the basis of the success of any company. A company that is not utilizing human power right away can never succeed. Human resource management includes many things.

For example, hiring, interviewing, tanning, and assessing workers, making better strategies for them, and maintaining an exemplary environment in their surroundings.

Peloton tries its best to hire a professional and talented instructor who knows the art of teaching similarly. They are working in other fields like the smooth transition of classes. Best of all, they make long-lasting peloton machines with the help of engineers.

Technology Development

Conclusion: a company needs technology development for competitive advantages, and the peloton has aimed to provide their customers the best services. Thus, they have different projects on updating the quality of the peloton.

They are similarly considering different technologies for making parts of the peloton and transmitting their classes.

Procurement

It covers all activities that were previously done for buying inputs, and there are different things in input, such as raw material, machinery, office equipment, etc.

Along with these, procurement also deals with vendor management, information system, supply chain, partner qualification rules, and ongoing performance evaluation. This is all about peloton value chain analysis.

Final Words

In a nutshell, there are two broad categories: primary activities help us increase the profit, and secondary activities will further amplify the results of secondary activities.

There are 5 parts of primary activities and 4 parts of secondary activities, and the description of all of them is mentioned above.

If you have any confusion or query, feel free to ask in the below comment section.

Thank you for your visit!

Scroll to Top