This public-sourced case uses the fitness company Zwift and one of its competitors, Peloton, to explore cost allocation and bundling services. The material includes a task to provide a back-of-the-envelope pitch about Zwift's potential to disrupt Peloton's growth. Although Zwift's foundation was on the software side, would an entry into the hardware side of the fitness space present a viable opportunity? As part of the analysis, students prepare a pitch using case and exhibit information around cost assignment, cost management, and how a strategic move based on these costs could be in the best interest of the firm or harm it.
