Business Case Studies & Business Publications

Can Zwift Disrupt Peloton's Ascent?

Dikolli, Shane, Wr...

Case

Can Zwift Disrupt Peloton's Ascent?

Dikolli, Shane; Wright-Pruski, Colin; Yemen, Gerry

C-2454 | Published January 18, 2022 | 11 pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

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.

- Explore cost allocation and its impact on a firm's strategy - Understand the role of bundling and unbundling attributes and potential influence on decision-making - Practice using internal cost accounting information to facilitate company strategy