A Strategic Corporate Decision Samples †MyAssignmenthelp.com

Question: Discuss about the Strategic Corporate Decision. Answer: Introduction: The aim of the paper is to study an article from The Wall Street Journal, which speaks about a business strategy made by a body corporate. The chosen article is the article published about Peloton on October 25, 2017 under the authorship of Alexandra Bruell. The paper initially discuses with the decision of Carolyn Tisch Blodget, the new brand marketing head of Peloton to restructure the brand positioning of the company. The subsequent sections analyse the effectiveness of these decisions and their future implications based on their outcomes. The strategic decisions and moves made by a corporation: Carolyn Tisch Blodget, the brand marketing head of Peloton, the Manhattan headquartered fitness equipment company took the strategic decision of strengthening the marketing and promotion. The aim of the strategy was to strengthen the then market position and revenue generation of Peloton. The corporate decision made by Blodget consisted of four strategic plans. The first strategy was to change the position of Peloton from a premium luxury product targeting the upper class customers to that of fitness equipment that even the middle class customers could afford to have (wsj.com 2017). This strategy allowed the fitness company to gain access to larger group of customers and strengthen its market position. The second strategy was to arrange for finance to purchase its products. This strategy in fact supported the first strategy and allowed the company to sell its fitness products among larger consumer base of both middle and upper class customers. The third strategy was changing the pres entation of its advertisement to attract the upper as well as middle class customers. The initial advertisements showed a rich woman using Peloton bike in her luxurious home. These advertisements attracted the rich people and positioned Peloton stationary bikes a product meant for the rich fitness loving customers (Wheelen and Hunger 2017). The later advertisements showed a large number of customers taking virtual classes in different types of homes, which signified different types of social status and lifestyle. These new advertisements positioned Peloton products, which can be used by a larger base of consumers from varying social and lifestyle patterns. These new advertisements increased the demand of Peloton products among a large number of customers in America, which fuelled the third strategy- entering into tie-ups with hotels, resorts and fitness studios. This strategy allowed Peloton make its fitness bikes available to a larger group of users at these hotels, fitness studios and resorts, which could the products even without acquiring them (Koschate-Fischer, Cramer and Hoyer 2014). This strategy helped Peloton to add value to the health conscious people in these places who could use them even without buying them. The fourth strategy was opening more outlets where customers could buy Peloton products. This allowed the fitness company to increase its physical presence in the competitive fitness market of America and sell its products among a larger group of customers. This strategy enabled Peloton to strengthen its marketing strategies, which earned huge revenue. Level where the decision was made (functional/business/corporate): The decision to position Peloton in the American market in a new way was at the functional by Blodget, the departmental head of the marketing department. Blodget then adapted the strategy as a business strategy and used it to strengthen the position of Peloton in the American fitness market (Ford and Richardson 2013). The reason for the decision: The reason for Blodget to implement the marketing strategy was to reposition Peloton stationary bike as a fitness machine, which could target a larger consumer base. She conducted a market research and found that Peloton bikes were very expensive and the product was only targeted the upper class customers. She further found that the company was not being able to cater to the middle class, which had the potential to become potential consumer if financial support was available. The marketing head analysed that the marketing of the fitness bike showing luxurious homes only attracted the upper class while the middle and the upper middle class customers could not relate to it (Slotegraaf and Atuahene-Gima 2013). These findings made her decide to market Peloton fitness bikes in a way to position it as a product to target a wider consumer base. Assessment of the decision: The assessment of the outcomes of the four strategies shows that the decision of Blodget to market Peloton fitness bike in an innovative was appropriate. The advertisement of Peloton stationary bike showing different classes of customers using it attracted a larger customer base. Peloton arranged for financial assistance to the middle class buyers, which helped it to attract new customers (Knight 2015). Tie-ups with hotels and resorts allowed the visitors in these places use the product, which in one way helped Peloton to promote it. The opening of more outlets strengthened the physical presence in the fitness market which made Peloton more prominent before its competitors like Nike. The combined outcome of these four strategies helped increase in revenue and strengthening of market position of Peleton (Armstrong et al. 2014). Thus, one can assess that the strategy to marketing of Peloton stationary bike by Blodget was successful. Future effectiveness of the decision: The decision of Blodget to reframe the marketing and promotion was effective. One can say this from the future outcomes of her decisions. The company has financially become very strong which proves the future effectiveness of the decision of Blodget. Reason for future effectiveness and its basis: The future effectiveness of the marketing decision of Blodget was proven by the three positive business outcomes. First, the company succeeded in attracting investments from the American media conglomerate NBCUnieversal. Secondly, Peloton was able to raise $450 million as share capital as on October 24, 2017. Thirdly, the revenue the company earned in 2016 was $170 million. These three achievements of Peloton prove the future effectiveness of the decision of Blodget to remarket Peloton fitness products in the American market (Lee et al. 2015). Conclusion: One can conclude that Boldget had taken the right decision by restructuring the market positioning of Peloton. The outcomes of her decisions were positive proven by increased in the revenue and capital base of the company. References: Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. Bruell, A. 2017.How Peloton is Marketing a $2,000 Bike Beyond the Rich. [online] WSJ. Available at: https://www.wsj.com/articles/peloton-shifts-gears-with-more-attainable-marketing-plan-1508959554 [Accessed 27 Oct. 2017]. Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical literature. InCitation classics from the Journal of Business Ethics(pp. 19-44). Springer Netherlands. Knight, J., 2015. Internationalization: A decade of changes and challenges.International Higher Education, (50). Koschate-Fischer, N., Cramer, J. and Hoyer, W.D., 2014, March. 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