Business // FitBit Future Strategy
Executive Summary
As for the key issue, this paper aims to discuss the case analysis of Fitbit, which provides an opportunity to assess its current management applicability. The analysis will be seeking to find out different assessment issues using SWOT analysis, PEST, 5 Forces, and 5C. Recommendations to these market indicators provide a significant measure to determine the strengths and weaknesses of the company. In addition, this paper will discuss relevant expected outcomes such as learning insights from Fitbit’s strategic outcomes and productivity.
Introduction
Fitbit is one of the growing electronic companies in the world that is now creating its name for producing electronic products that are wearable. The company is currently headquartered in San Francisco, California since the 1st of May in 2007. The founders of the company are Eric Friedman and James Park. The company manufactures and distributes products that are used to measure biometric data from human and biological activities. These are the number of steps, cardiac rates, sleep quality, climbed steps, running steps, and other biometrics that are involved in fitness. The company believes that using biometric measuring devices aims to promote weight loss as well as to increase health consciousness to the consumers. The company is just one of the few institutions who manages to produce wearable products that can be used independently while monitoring biometrics for the consumers.
SWOT Analysis
As for the strengths, the company is just one of the few that decided to manufacture and distribute products that aim to improve the health and wellness of the consumers. This is a rare business campaign for the society due to a number of other institutions who are only generating products that only meant to hurt our ecology and health. As a health-conscious company, health is playing an important role to ensure that the productivity of the company’s commodity campaign can generate a significant amount of expenses from its target market sources. The weakness is that there are a few consumers will realize that there are companies out there who are concerned on the welfare of the public with regard to maintaining a healthy lifestyle. Integration of both technology and health makes the product valuable to the community as it prevents any health risks that affect the health of the consumer.
The opportunities applied for this case study is to tap market resources that are not yet aware about this technological opportunity. There are multiple target markets internationally who are now tapping communities that wants to have this object to monitor their health. There are numerous sources of access points for the company to display their products with the help of the internet technology. The threat is the entrant of other biotechnological companies who are offering similar products to the target companies. The threat of competitors is evident whenever the company will display their products with similar internet portals. This is because there are companies who offer cheaper product prices to ensure that they can drive more investment returns.
PEST Analysis
As for the political laws, it is important for the Fitbit to become fully aware about the laws and policies applied from that particular area where they are going to display their products. One major example is the taxation of products in foreign lands. Each company should prepare legal documents before accessing permits to operate their businesses in each country. The economic factor is all about tapping the human resources of foreign lands, which is an essential way for the company to ensure that a return of investments applied. The return of investment promotes a new haven for the products to reveal how the company is performing at a certain period of time, showing the competency of the brand to the target markets.
As for the social factor, the company will always have to measure the degree of feedbacks made by their target markets. The use of communication is very important because it seeks to acknowledge concerns that exist within the company. The customer care personnel are responsible for taking concerns from consumers and investors through their hotlines. On the technical function, the company use technology as one of its main drivers of business venture. Using wearable devices such as watches and other portable devices that can easily attach it to their bodies to monitor their health biometrics aims to generate a unique brand. Technology facilitates communication through the use of social media. Example is the social media networks that allow stakeholders to establish communication that resolves concerns or issues.
FIVE FORCES ANALYSIS
The threat of new entrants provides a high yield of high returns for the company to maintain its productivity. This includes decreasing the profitable potential of Fitbit due to the entrant of new companies that wants to engage in similar business practices. Since online marketing is now exponentially growing, more businesses are now aiming for more profitable opportunity as they are going to venture to online marketing strategies. This is a concern because it can significantly cause a disruption with the traditional marketing strategy of Fitbit. Entrants indicate that there is a potential market resource as well as investment opportunities for a product that can be easily sold. Even if the product is sold at a high price, consumers still wants to have it as part of their lifestyle trend. As a result, Fitbit is mandated to produce more products so that it will take an advantage to maximize its earning potential in the future.
Threat of substitutes is a concern for Fitbit because months after they have already released their products, the value significantly drops or decline. There are new products with similar feature that are produced by companies who want to compete with companies who are selling products that are expensive. Cheaper products are a threat to the products of Fitbit. The bargaining power of consumers is sometimes a concern for the company. Each consumer wants to purchase items that are sold in a cheaper price. They usually bargain until their curiosity is satisfied. This is not a good marketing indicator for Fitbit as it shows how aggressive a customer is when they are going to purchase the product. Companies should expect a different variety of consumers who will be showing similar attitudes while transacting with the company when acquiring products according to their interest with the products and services.
Bargaining power of suppliers is a concern for Fitbit. The volatile market structures and movements are responsible for the changes in the raw material prices. If there are negative movements indicated by the stock markets and forex markets, it significantly affects the value of commodities. As a result, manufacturers are forced to increase the price of their raw materials to supply companies such as Fitbit. Industry rivalry is another force that the company should always monitor (Butcher, n.p.). There is a significant impact that a company must have to apply whenever they are engaged in a marketing structure that has other companies operating in similar target markets. The result will be all about the existence of marketing competition because similar companies compete with the consumers of one target market sources.
5C Analysis
The Company is the first issue that talks about the brand of Fitbit. Every company has its own brand. The main important indicator in this position is the management of the company’s pioneering service to the consumers. As a brand, it is important to ensure that there is a high quality measure in order for the consumers to patronize the product. As a result, the brand becomes more popular as consumers starts to advocate the policies and the advantages of the company’s productivity. The company’s marketing strategy is the main important structure in order to ensure that the brand becomes a household item for every consumer. If the company attains its household identity, business becomes attainable to improve all brands’ applications. There is collaboration with the company’s services to become more competitive to other companies around the world.
Collaborators of the company are always the investors who are the financers of the company’s production and services. These are the most important stakeholders who are lending financial assets for the marketing proposal and projects to materialize. Investors lend money for the company in order for the services to be delivered to the target markets. As for the customer, the company seeks to target a specific market group such as health conscious consumers. These are individuals who are always concerned with their health and lifestyle on a daily basis. As a consumer, there are different ways to ensure that the market profitability becomes competitive. Consumers are the most important stakeholders because they are the source of income for the company. Once there are returning consumers, it indicates that the brand is effective, products are valuable, and services are memorable (Stevenson, n.p.).
Competitors are the natural challengers of the company. In each target market, there are different kinds of competitors with their unique style of attracting their target markets. Companies observe that their competitors use pricing strategies to lure their target markets. This is why there has been a decline with the sales of Fitbit in 2015 from its all-time high profits in 2014. There are other competitors who use different marketing strategies to increase the interest of their potential consumers. The contextual analysis of the company is their vision. Having a goal or a cause is an important structure of the company because it represents their identity towards having a different marketing structure. As a company, there is a sustainable investment returns whenever a reasonable marketing indicators that are propelled by goals have been applied. Without context, the essence of driving the company’s business venture is considered useless for the target markets (Graziano, n.p.).
Conclusion
It has been learned that FitBit future strategy still has a long way to process because its return of investments has been significantly intermittent. It is understandable that the case of the company’s profits has a period of decline. This was based in 2014 when consumers became resurgent on availing the company’s products. However in 2015, there is a slow decline with the profits of the company, making it alarming for the stakeholders to reconsider its marketing strategy. A thorough comprehensive feasibility study is important because it seeks to evaluate past actions of the company’s production enables to improve the institution’s efficiency. Identifying strengths maximizes the company’s full potential to drive all sorts of marketing competitiveness to other target marketing strategies with its products.
Works Cited
Butcher, Mike. “Fitbit acquires the Vector smart watch startup, as the wearable giant continues its roll-up”. TechCrunch. 2017. Print.
Graziano, Dan. “Fitbit’s new software update makes your tracker more personal”. 2017. Print.
Stevenson, Abigail. “Fitbit CEO reveals he’s transforming the mission and purpose of the company”. 2016. Print.
2018/5320
