Peloton Interactive Inc. is an exercising and fitness equipment manufacturing and media studio American multinational company. Yony Feng, Tom Cortese, John Foley, Hisao Kushi, and Graham Stanton founded the exercise equipment company in 2012. The company has established a network of approximately 132 exercise showrooms and 2 studios in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Peloton; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Peloton
Some of the main political factors in the Peloton PESTLE analysis are as follows;
I-Government Regulations
The governments of different countries have very strict health and safety regulations for health, fitness, and exercise equipment manufacturing companies. Peloton Interactive needs to keep in mind the health and safety regulatory requirements of different countries and make their exercise equipment safe and sound to avoid any safety issues.
II-Political Lobbying
Peloton Interactive invested approximately 1.2 billion USD on political and government lobbying in 2020-21. It allows the exercise equipment company to influence public policies and government regulations relevant to health and fitness. However, the company contributes significantly to building strategic alliances and impacting government policies.
III-Tax Incentives
Different states of the USA have passed laws of providing 30% tax credit to health and fitness expense-incurring companies. The tax incentive regulations have benefited the company by approximately 50 million USD annually for health and fitness subscriptions.
Economic Factors Affecting Peloton
Some of the main economic factors in the Peloton PESTLE analysis are as follows;
I-Limited Disposable Income
The disposable income of average households and middle-class people has dropped to a great extent. It is due to various economic factors like global economic recession, tight economy, higher unemployment rate, inflation, and others. When people have limited disposable income, they spend their income carefully and avoid spending it on luxury products and items like exercise equipment.
II-Currency Exchange Rate
The currency exchange rate market is highly volatile and it keeps on changing daily and regularly. Peloton Interactive manufactures its exercise equipment in China and other countries. A small change in currency exchange rate would negatively impact the company’s revenue and increase the production cost.
III-Market Demand
The market demand for health and fitness products and equipment has been increasing significantly for the past few years. According to an estimate, the global health market of connected health would reach approximately 4.5 billion USD with a rate of 19.9%.
Social Factors Impacting Peloton
Some of the main social factors in the Peloton PESTEL analysis are as follows;
I-Fitness Awareness
The consumer market has become more aware of health and fitness products, ever since the pandemic crisis. According to an estimate, the health and fitness market will reach approximately 150 billion USD by the end of 2028. It shows the great interest of the consumer market in health and fitness and exercise equipment products.
II-Remote Work
The trend of remote jobs and remote work has been increasing over the years. According to an estimate, 56% of the Americans are working remotely. When people are working remotely, it requires them to buy exercise equipment to keep up with their health and fitness activities.
III-Socio-culture Importance e
Many research studies have proven the fact there is a great link between mental and physical health and fitness. According to an estimate, approximately 80% of Americans believe in the fact that physical activities would improve their psychological health and well-being. It makes them invest in the products and equipment to improve their physical fitness.
Technological Factors Affecting Peloton
Some of the main technological factors in the Peloton PESTEL analysis are as follows;
I-R&D
According to an estimate, Peloton Interactive invested approximately 555 million in research and development. It allows the company to improve and upgrade the technological features of its fitness equipment product. For instance, the Peloton bike has a 360-degree swivel capability and a 22-inch HD touchscreen display to check and access various features.
II-Wearable Fitness Devices
The trend of wearing fitness devices has been increasing over the years. For instance, Peloton Interactive has integrated its fitness equipment with Apple Watch, Fitbit, and others. It helps users synchronize their fitness indicators like workout duration, calorie burnout, heart rate, and others. However, the overall fitness wearable device market will reach approximately 62 billion USD by 2025.
III-Data Analytics
Peloton Interactive has a very large network of customers, users, buyers, and fitness live classes. The fitness equipment brand employs various data analytical tools to analyze and evaluate customer data, offers customized and personalized fitness solutions to the customers, and recommends the right exercises and products. However, it allows the company to improve the overall customer satisfaction level.
Legal Factors Impacting Peloton
Some of the main legal factors in the Peloton PESTEL analysis are as follows;
Regulatory Compliance
Peloton Interactive should comply with the health and fitness and exercise equipment safety regulations. They comprise IPRs and patents of fitness software, product safety risks, online content delivery requirements, and data privacy laws. Compliance with fitness and safety laws would help the company to smoothly perform its operations.
Environmental Factors Affecting Peloton
Some of the main environmental factors in the Peloton PESTEL analysis are as follows;
Sustainability Initiative
Peloton Interactive has made a strong commitment to environmental sustainability. They comprise employing renewable sources of energy for live video classes, decreasing the carbon emission rate, lowering environmental waste, eco-friendly products, recyclable material, and corporate social responsibility. It shows the company’s strong commitment to environmental sustainability and keeping up with the growing sustainable trends.
Conclusion: Peloton PESTLE Analysis |PESTEL Analysis of Peloton |External Environmental Analysis of Peloton | Strategic Analysis of Peloton
After an in-depth study of the pestle analysis of Peloton Interactive; we have realized that Peloton Interactive is the world’s leading exercising equipment manufacturing brand. If you are learning about the Peloton PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
