SM9532: Peloton, Based in New York City, USA, is an Exercise Equipment and Media Company Founded in 2012: Strategic Frameworks and Cultural Contexts in International Management Report,, Singapore

Assignment brief:

You are required to produce one word-processed report covering all three parts of the assessment.

Peloton, based in New York City, USA, is an exercise equipment and media company founded in 2012.  The company’s main products include a stationary bicycle and treadmill that allow monthly subscribers to remotely participate in classes that are streamed from the company’s fitness studio. Peloton has been growing faster with skyrocketing sales of its high-tech bikes and surging subscriber base. Peloton is currently in the USA, Canada, the U.K. and Germany, and it is looking to expand into additional geographies in the coming years.

With the planned further international expansion, assume that the company now needs to make a decision about choosing ‘ONE’ from three countries that have the highest potential for success. The three countries are China, Mexico, and Turkey. You are employed by a consulting company and your company has been approached by Peloton seeking advice for making the above decision.  Now, you are required to conduct a research-based strategic analysis addressing the following tasks.

Part 1:

Applying the CAGE framework, identify the similarities or differences between the home and each of the potential host countries, and brief implications of those similarities or differences, in the case context, for crafting international strategies. You also need to make a recommendation of a country to invest in based on the CAGE analysis(50 marks, 1250 words maximum)

*** CAGE: Cultural Differences, Administrative Differences, Geographic Differences, Economic Differences

*** US vs China, the US vs Mexico, the US vs Turkey

Part 2:

Using the triple AAA framework, identify what should be the relatively most important strategy out of the AAA (Arbitrage, Adaptability or Aggregation) strategies to focus on for the firm to create value in the chosen host country to start with. Briefly reflect on how this aspect may shift over time as the firm grows in the chosen country.

Part 3:

Briefly discuss TWO key challenges identified in your analyses above (Part 1 and Part 2) that should be taken into account before starting operations in the chosen country.