The biggest risk companies face that everyone forgets


By Paul R. La Monica, CNN Business

via KITV (Hawaii) - November 15th 2021


Many companies and investors need to learn a crucial lesson: Becoming a market leader is easy, but staying one for a prolonged period of time? Not so much.


Success brings about imitators. And competition can quickly eat into sales, market share and profits. Just look at the lousy earnings from Peloton and Beyond Meat for example. Both stocks plunged following their latest results.


Some of Peloton's problems are because more people seem to be willing to leave the house and hit the gym instead. Strong results from Planet Fitness, which recently reported earnings that topped forecasts, show that Peloton has plenty of competition outside the home.


But there are also cheaper bikes on the market from the likes of Bowflex, Echelon and NordicTrack. Competition has forced Peloton to cut prices, and investors aren't happy: Peloton's shares have plunged nearly 70% this year.


Too much competition is rarely a good thing ...