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Peloton Recalls Treadmills

Peloton has been riding high for the past year as gyms closed and people took their fitness routines into their homes. Peloton stock and sales are at an all-time high. To be clear though, high sales volume has given the company problems with supply chain and manufacturing during this time period. It even has a recall due to problems with broken pedals on its bikes which caused injuries.

However, a more recent and critical problem for Peloton has been a number of cases of injury to adults, children, or pets being pulled underneath the rear of the treadmill. According to the U.S. Consumer Product Safety Commission (CPSC), there have been at least 72 reports of adults, children, and pets being pulled under the treadmill, including 29 reports of injuries to children and one death of a six-year-old child. Serious issues indeed.

The recall notice was issued by Peloton, but only after an urgent warning from the CPSC that forced the company to change its initial stance about the problems. Peloton is now offering a full refund for owners of the treadmill.

What should companies due about hazards to consumers?

Group Activities and Discussion Questions:

  1. Discuss the components of public relations and crisis communications.
  2. Show video about the problem: https://youtu.be/RiAjg4RXLMQ
  3. View Peloton’s statement on its website: https://www.onepeloton.com/press/articles/tread-and-tread-recall
  4. Show the U.S. Consumer Product Safety Commission recall notice for Peloton: https://www.cpsc.gov/Recalls/2021/peloton-recalls-tread-plus-treadmills-after-one-child-died-and-more-than-70-incidents
  5. Show additional recall notice for a separate Peloton recall: https://www.cpsc.gov/Recalls/2021/peloton-recalls-tread-treadmills-due-to-risk-of-injury
  6. What are the basic components and steps to handle crisis communications?
  7. How did Peloton initially handle the problems? What did they later do?
  8. Divide students into teams and have each team select a company/product. Then, have teams determine the steps to take during a crisis for that company.

Source: CBS; CNBC; New York Times; other news sources

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Amazon Drones get U.S. Approval for Delivering Packages

Drones seem to be ready to take over the skies, but are they really ready for prime time? Can they deliver the goods? And how does this change delivery services around the globe? We may soon find out the answers to some of those questions.

Amazon is the latest company to receive FAA approval to operate a fleet of delivery drones. The approval gives Amazon Prime Air broad privileges to “safely and efficiently deliver packages to customers.” Amazon will test its drones with the goal of achieving 30-minute deliveries for packages of up to five pounds within a 15-mile radius of a warehouse. The company has been working on using drones for deliveries since 2013, continually innovating the drone models. The FAA approval gives Amazon permission to operate a fleet and is not tied to a specific model of drone.

Amazon isn’t the only game in town though. Last April, Wing (owned by Alphabet) received FAA approval for commercial deliveries. UPS also received approval to operate a fleet of drones as an airline last year. However, in all these cases, widespread use is likely still years in the future as the FAA needs to establish new, automated air-traffic systems as drone operations will exceed what human air controllers can handle.

Ready for your drone delivery?

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Show Amazon drone video: https://youtu.be/3HJtmx5f1Fc
  3. Optional: Here is an older version of the Amazon drone model: https://youtu.be/MR9PoBAssw0
  4. Show competing drone services:
  1. Discuss which industries and services will be most impacted by drones. Why these?
  2. Will drones benefit consumers? How?
  3. Divide students into teams and have each team develop a positioning map for drone delivery services. What will be most important to consumers?

Sources: Associated Press; CNBC; New York Times; Wall Street Journal; other news sources

 

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UPS Drones Take to the Sky

Are drones finally ready for prime time? Can they deliver the goods? And how does this change delivery services around the globe?

We’re about to find out the answers to some of those questions as UPS recently announced that its drone airline, UPS Flight Forward, has received FAA certification to operate a drone airline. The service will initially support medical packages at hospital campuses around the country. The UPS drone has been in test mode for the past year at the WakeMed campus in Raleigh, N.C., where is has been delivering packages such as tissues and blood samples to different buildings on the campus.

UPS is not the first company to use drones to deliver medical supplies. Other companies outside of the U.S. have been using drones to deliver medical supplies such as vaccines in difficult to reach areas. Healthcare operations (and patients) directly benefit from shorter in-transit times. The FAA certification allows UPS to fly an unlimited number of drones with remote operators in command. The certification also allows for cargo to exceed 55 pounds and fly at night.

Let’s fly!

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review UPS drone service.
  3. Show UPS drone video: https://youtu.be/xx9_6OyjJrQ
  4. The detailed business news announcement is available at: https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1569933965476-404
  5. Who are UPS’s competitors? What are their strengths and weaknesses?
  6. Divide students into teams and have each team develop a positioning map for UPS’s new Flight Forward drone service.
  7. Have each team draw their map on the board.
  8. Debrief exercise.

Sources: Wall Street Journal, New York Times, The Verge, Forbes, other news sources

 

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