Strategy+Business – August 2019

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2019), it is clear that Peloton continued to adapt to market realities and opportu-
nities against conventional thinking, creating a vertically integrated business that
controlled all aspects of the customer’s experience. The dynamic feedback loops
are evident in the fact that Peloton’s Net Promoter Score (its chief customer sat-
isfaction metric) rose as every new aspect of the experience was controlled. Cus-
tomer delight with the product and service led to highly efficient word-of-mouth
marketing, which led to more customers and greater scale, which improved the
company’s financial capacity to build an immersive experience. As it has grown
and evolved, Peloton has built out its capabilities systems for software, logistics,
and instruction.

Advanced strategy tools
While they work to build growth flywheels, companies can use the power of
strategy flywheels. The forces that have led to disruption and accelerated clock
speed are also providing businesses with the tools to develop resilient strategy.
Automation, analytics, and AI have made huge advances in recent years. In busi-
ness, we increasingly see machines perform manual or cognitive tasks; organize,
analyze, synthesize, and act on large amounts of data; and make operational and
management decisions, or at least recommend them. But what about strategy,
which is generally regarded as a uniquely human endeavor? To be sure, AI alone
can’t develop our strategy for us. But it can change the way we do strategy, and
help organizations reimagine the future and develop their own flywheels. In fact,
it is already starting to do so.

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