Case Study: Fitbit Inc.

Fitbit Inc. was founded by James Park and Eric Friedman in 2007. The duo, realized that sensors and wireless technology had advanced to a point where they could bring remarkable experiences to fitness and health. This realization led to the conception of a wearable device with activity trackers and wireless-enabled technology that can measure various data and track activities related to health and fitness such as heart rate, quality of sleep, steps walked, steps climbed etc. Fitbit Inc. is devoted to health and fitness by building technology enabled products that will help transform people’s lives. James and Eric envisioned Fitbit Inc. not only to be a hardware manufacturer, but as an integrated technology, wellness platform that will provide
This first mover advantage has positioned Fitbit as the leading brand for fitness tracking wearable devices. Fitbit is known for high quality and is loved by consumers. Therefore, the Fitbit brand has become a household name that is well accepted and endorsed by many customers. The issue, however is that the brand is substitutable that is it can be replaced by a new product that can satisfy the same needs and meet the same requirements easily. Apple currently dominates the wearable device market by the first quarter of 2017 with about 3.5 million apple watches shipped while Fitbit shipped only 2.9 million. All of Fitbit key resources are replaceable and can be substituted. Fitbit’s competitive strategy focuses on a product differentiation approach by relying on top design and features to increase customer’s willingness to pay for their products. In order, to maintain a differentiated competitive strategy, Fitbit will need to continue to utilize its resources to ensure that they continue to create value for the customer’s by offering new and exciting products with unique features. Fitbit is currently struggling in the face of growing competition from Apple watch. Apple’s heavy emphasis on health and fitness features in their device which is the core area Fitbit once had control over has put their go-to-market
These factors make it challenging to succeed and maintain a competitive advantage that is sustainable for a start-up venture like Fitbit. Fitbit’s sustainable strategy will be to shift focus and enter a new market like software application that will help people become healthier and more active. This can be seen with the acquisition of Fitstar the mobile fitness training app. Another sustainable strategy for Fitbit is to take full advantage of the corporate wellness market that is projected to grow enormously to about $11.3 billion by 2019. Fitbit can further grow this market by establishing strong partnerships with more corporate entities. Corporate entities are becoming concerned about their employee’s wellness and want to create a healthy and fitness image. Fitbit has already collaborated with big establishments such as Bank of America, Target etc. Collaborating with more corporate entities can give Fitbit the boost it needs in dominating the corporate wellness