C19BU– Strategic Management

Tutorial 1, Week 3

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Strategic
groups
PELOTON CASE
analysis STUDY

2
 Session timeline

IDENTIFY THE CRITERIA SELECT 2 RELEVANT DISCUSS SOLUTIONS

TO DIFFERENTIATE CRITERIA AND DRAW A 10 MIN
COMPANIES STRATEGIC GROUP
10 MIN MAP
15 MIN

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Reminder : strategic groups mapping

• Identify the competitors in the industry

• Identify criteria to differentiate them à complete the comparative table with

information you found for each criteria

• Select relevant criteria to draw a two-dimensional strategic group map

• Place companies on the map according to these two criteria

• Identify strategic groups

4 © Edinburgh Business School

 The strategic map : identify relevant criteria
Competitors Criteria 1 Criteria 2 Criteria 3 Criteria 4 …..

Peloton

Nordic Track

Echelon

Life Fitness

Barry’s boot camp

Orange Theory
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Competitors Price Quality Targeted Product range Distribution Geographical
customer channels coverage
(online/retail
store)
Peloton 2500 High BtoC Average Online/retail Global (8)
stores

Nordic Track 2500 High BtoC Average Online/retail Global (7)

stores

Echelon 700-800 High Both Large Online/retail Global (5)

stores

Life Fitness 1300 High Both Large Online/retail Global (>100)

stores

Barry’s boot 24 per class High Both Narrow FtoF/Online Global (15)
camp

Orange Theory 34 per class High Both Narrow FtoF/Online Global >45
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 Fitness equipment industry : the strategic groups map
Scale 1
Criteria 1

Scale 2
Criteria 2 © Edinburgh Business School
7
 Fitness equipment industry : the strategic groups map
High

Life fitness
Echelon
Product range

Peloton
Nordic Track

Barry’s boot camp

Orange Theory

Low High
Price
Note : The
8
size of circles should be proportionate to company's market share that we have not calculated. © Edinburgh Business School
A longer version hereafter with more companies (slides 11-13)

9 © Edinburgh Business School

Competitors Equipment Membership Community Equipment Geographical Product / Quality
production & size price ($) coverage service range
online ($ per month) (number of
training subscribers)
Peloton Both 12-44 2,76M 2500 Global Average High
(interactive) (conditional)
Nordic Track Both 39 >6.4M 2500 Global Average High
(interactive)
Echelon Both 13 >400.000 799 Global Average Medium
(interactive)
ProForm Both 12 >6.4M 1150 Global Average High

MYX fitness Both 39 >2.8M 1399 Limited (US, Narrow High

UK, Canada)
Life Fitness Both 79 - 895 Global Above Medium high
average
Precor Both - - 1400-7500 Global (>100) Narrow- High
average (spe)
Bowflex Both 20 - >800 Global (>60) Narrow- Medium
(conditional) average
Stryde Both 30 - 1895 Local (US) Narrow Medium
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Competitors Equipment Membership Community Equipment Geographical Product / Quality
production & (per month) size price ($) coverage service range
online (number of
training subscribers)
Wahoo Both 15-20$ 3499 Global Narrow High

Mirror Interactive 39$ 6000 1495 Global Narrow Medium-high

home fitness (conditional) (10000
classes)
Class Pass App (access to 35$ - - Global Narrow -
classes)
SoulCycle Fitness studio ~21$ per class > 500.000 1500 Limited (US, Average Medium
(Equinox bike) London)
Barry’s boot Fitness studio 34$ per class > 100.000 - Global (large Narrow Low-Medium
camp # locations)
Orange Fitness studio 59$ - - Global (large Narrow Low-Medium
Theory # locations)
Pure Barre Fitness studio 100$ - - Limited (UK, Narrow Medium
DE)
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 Fitness equipment industry : the strategic groups map
Large
Product range

Echelon Peloton
Life Fitness Nordic Track

Bowflex

Precor Wahoo
Barry’s boot camp MYX Fitness
Orange Theory Mirror

Narrow
Low High
Price © Edinburgh Business School
12
 Fitness equipment industry : other possible criteria

• Technology (e.g., number of patents…)

• Reputation / brand
• Number of live classes (number of connected subscribers per day)
• Number of workout classes
• Distribution (online, retail stores)

13 © Edinburgh Business School

Next week…

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