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Peloton overarching strategy

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Question

Peloton's overarching strategy (3 years) should focus on gaining market share in the North American market as a FaaS company, raise price to improve profitability while developing personalized fitness features to justify the price increase.

Profit = (Price - Cost) x Quantity

- Focus on NA market = reducing fix cost and variable cost related to market expansion (even for the subscription business)

- New FaaS feature = Improved Quantity of subscribers & justifies new Price

- Raise price $3 - $6 = Improve profitability

Reference no: EM133515959

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