Hard to fathom a market cap declining from $49 Billion to $1 Billion in 36 months, but that's what we are looking at here. This is a case study on brands who live on speed to market versus intellectual property. Peloton did it first and did it fast, and created an enormous valuation bubble. Everyone drank the Kool-aid. Beginning in 2020, the pandemic boom accelerated their growth, and over the last two years, the pandemic bust accelerated their demise. But there was always one huge problem - Peloton had little to no IP. There were no barriers to entry, which made them defenseless to the army of exercise bikes, rowing machines and fitness app competitors who seized their success. The key lesson - speed to market always runs out of speed. Brands who sustain better have a war chest of patents, intellectual property and proprietary protections.
John White, MBA
3mo
Speed to market is important, but so is having strong intellectual property defenses for long-term success.
Javier Brandwain
3mo
J. Rick Cusick good digest. Peloton had everything to succeed and be sustainable regardless of IP, C-Suite always lacked humble strategic vision (commented on my post all mistakes made since company was founded).
Steven Trinkaus
3mo
Well stated Rick
Sr. Director Healthcare New Business Development
2moHe also shouldn't have maybe made that phone call to Dana White...