Fitbit: Riding the Fitness Wave to Glory Case Study Solution
Fit bit was found in 2007 when Eric Friedman and James Park believed that there was a market for the technology device that could track the physical activity of a person. The company exploited the market opportunity by being the fit mover in the market followed the trend of adopting the healthy lifestyle emerged in the market and started encouraging the personal responsibility for one’s health and fitness.A multinational technology company Apple with its Apple Watch has upgraded to include the features of tracking the fitness, have become significant competition for Fitbit. Fitbit targeted the people highly concerned about their health and fitness and want to adopt the healthier lifestyle.The fitbit business provides the employment opportunities to the countries because of the reason that the employers are looking for the people who are physically healthy and fit and could actively make contribution towards achieving the common goals of organization. The company should continuously analyze the effectiveness of marketing strategies, keep tracking the market rivals while communicate & deliver its USP to the market. In order to address the privacy concerns of the customers, the company is advised to partner with data-security companies and broadcast the partnership to the public with the use of the social media campaigns to thrive transparency and trust with customers.
Fitbit was founded in 2007 when Eric Friedman and James Park believed that there was a market for the technology device that could track the physical activity of a person. The suit of products offered by Fitbit allowed the customers to easily track the activity of heart rate, calories burned and number of steps taken. The Fitbit devices were marked to employers, customers and corroborate wellness programs as well.In 2016, the company remained one of the valuable and leading manufacturers of the activity trackers of the world – the increasingly crowded space – with more than 21 million units sold in the same year, ringing up 1.86 billion dollars in revenues and 116 million dollars in profits. The ultimate aim of the company is to help people to live active and healthier lives.
The devices offered by Fitbit becomes nearly ubiquitous with health-conscious individuals as well as fitness enthusiasts, wearing the device and checking throughout the day. The company exploited the market opportunity by being the fit mover in the market, by following the trend of adopting the healthy lifestyle that emerged in the market and by starting to encourage the personal responsibility for one’s health and fitness.
Despite of gaining the substantial market share as well as increased sales on account of the alignment with market trend and high customer adaptability, and being primarily focused on the wellness; the company is concerned about its future growth and prosperity. Additionally, the company is facing various issues,threatening the survival and growth of the company, such as presence of the renowned players in the market with similar product offering, customer retention and finding ways to differentiate its wares and positioning itself as more than a producer of fitness trackers in the market.
Micro environmental factors have affected Fitbit since its establishment
a. The Company
Since the corporate America stressed over the significance of enrolling the employees of the organization into the health and wellness programs, to make them more productive and provide major benefits to the company; the company communicated to the companies and developed relationships, which in turn greatly affected the sales of the company. Additionally, the retention rates of the product sold through the corporations was high as compared to products sold to the individuals. Not only this, the corporate sales accounted for 10 percent of the total revenue generated by the company as well.
Furthermore, there is a likelihood of increased corporate sales as the adoption of Fitbit devices is growing at the faster rate as compared to the consumer market, and the organization has witnessed the improvements in culture as a result of unified efforts towards achieving the health and fitness objectives, thus providing an opportunity of developing strong relationships with corporate clients, to yield greater financial outcomes.
b. Marketing Intermediaries
The company has been engaged in direct delivery of the products to the customer, and through corporations. By expanding the channel of distribution with retailers and forming strong relationships with the corporation intending to enroll its employees in their workforce wellness programs; the company became able to seize the greater share of the US market.With such affordable and vast channel of distribution; the company has gained higher returns from saving a huge amount of money on running its own retail stores.
Fitbit has been operating in the dynamic and highly competitive market and has facedrobust and rigorous competition from Garmin, Google and Apple. A multinational technology company Apple with its Apple Watch has upgraded,in order to include the features of tracking the fitness. Apple is known to be the major rival of Fitbit. With a number of attractive features and the wider base of customers served by Apple; the Apple Watch has proven to be the valid concern for the company. Due to this reason, the company is more directed towards differentiating its wares & positioning itself as more than just a fitness tracker producer. Following the intense competition in the market; the company is attempting to lead the market by introducing its own smart watch& “next big leap” to move beyond tracking of fitness into medical diagnosis.(Perelman, 2014).
Fitbit targeted the people who are highly concerned about their health and fitness, and want to adopt the healthier lifestyle. Secondly, the company also targets corporations and enterprises that intend to enroll its employees into workforce wellness program, to help them achieving the health and fitness goals, thus contributing more to the success of their companies as a whole. The continued growth of the company is shaped by addressing different consumers with different needs and purchasing power as well as theuser’s preferences, for the new and improved versions.
Additionally, the customer have been highly concerned about sharing & the publicity of the data, including the potential data misuse by the firms that Fitbit offered its trackers to, as the customer’s personal data could be broadcasted publically and can lead towards the violation of privacy as well as the public-sharing of their live style choices &personal lives. Thus, the company has incentivized an increased physical activity through additional vocation days. Such expansion of Fitbit into corporate market, has allowed the company to generate high sales and an increased customer retention………
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