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Fitbit Business Strategy

By:   •  July 22, 2019  •  Case Study  •  303 Words (2 Pages)  •  360 Views

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STUDENT’S NAME

BUSINESS STRATEGY

UNIVERSITY

DATE

Fitbit is a company used to provide fitness and health tracking devices. Fitbit remains strong and most performing company despite others with a growth of 10.9 to 22.5 unit’s shipments during 2014 to 2016.

During financial year 2016/2017 Fitbit management aimed a revenue increase of $2.4 to $2.5 billion due to the new devices in the market. However, 2016 the management expectation become much more negative and financial performance decline to $60 million for the first quarter of 2017 which was a net loss. The reason being:

Fitbit does not have group of developers which are used in different ways of generating income as Apple does. Even if their tracker products were more cheaper compared to Apple’s ($129 as compared to $349 price for Apple watch sport, therefore this enables Apple having stock of more harvests than Fitbit. Also this feature was used by variety of companies in their products therefore ongoing sale of stock remains sluggish affecting the revenue of Fitbit.

The company competitive strategy was poor thus reducing market niche. The raise of many companies in the industry they end up creating new fashion segment of tracking products and helped to raise customer interest in hybrid watches and others with fitness tracking capabilities . These products they had multiple uses as per each, compared to that of Fitbit therefore lowing its interest to customer.

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