On May 24, 2021, Peloton Interactive, Inc. (Peloton) announced its intention to build a new US factory to produce its stationary bicycles and treadmills. The new factory, which would be located in Ohio, was an addition to the company’s investments in its manufacturing facility in Taiwan and its purchase of fitness equipment manufacturer Precor Incorporated. In deciding to invest in its own production facilities to supply exercise equipment, Peloton was in stark contrast to its competitors, who predominantly outsourced production overseas. Would Peloton’s plans to build its own fitness equipment in Ohio help or hinder its ability to fulfill its goal of market leadership?
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