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“Peloton Faces Backlash…” by Lauren Thomas

Peloton faces backlash after disabling the free-running feature on its $4,000 treadmills. Peloton has faced negative reactions from its customers after the company disabled free run settings on its expensive treadmill Tread+. This would have made the users pay extra membership fees on a monthly basis. Peloton’s response was that it would provide the owners of Tread+ with three months of free membership in order not to lose the clients’ loyalty. Moreover, given that there is a tendency to leave the house and go back to offices and gyms, the company is changing its policy to lure new consumers. Peloton claimed about the introduction of a corporate wellness offering that includes equipment discounts, as well as subsidized membership. There is also the process of the development of a branded armband that can allow the company to reach the wearable industry.

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E) It seems reasonable to state that there is no company that insured against failures and drawbacks that are likely to lead to reduced customer loyalty and trust. The crucial point here is how an enterprise response to such inconvenient situations to save its clients and reputation. Peloton made a public announcement regarding the issue with Tread+ and provided the affected stakeholders with a three-month free membership. This allows assuming that the company has a significant corporate social responsibility and cares about its brand and customers. Peloton promptly demonstrated flexibility in terms of its policy and addressed the problem appropriately.

What is more, there is clear evidence that Peloton has quite an advanced business strategy and pays attention to marketing to the necessary extent. The article says that this corporation decided to shift its approach and diversify its offers, given the current changes in the market. Indeed, broadening the scope of the target market seems a good option under the conditions of the solid industry position and the appropriacy of some particular shifts. The implementation of the armband may be considered a great opportunity to increase profit margins and even draw the customers’ attention from the recent problem of Tread+ to the new item. To summarize, Peloton has solved the pressing issue correctly and is confidently moving forward toward new attainments.

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