Questions: Q. 1) Analyse the forces which are driving industry competition using Porter Model for FITBIT case study. ( 10 marks ) Q. 2) Conduct the SWOT analysis for FITBIT. ( 16 marks ) Q. 3)...

1

Introduction
During March 2007, the company was founded by the name of Health Metrics Research Inc.
in Delaware in U.S. which was later on named as Fitbit. It produces activity trackers which
shows the fitness regime calculations such as calories burnt, number of steps, mode of
running, etc. However, over the time the company started adding more features into the
product to makes it more stylish and useful.
SWOT Analysis
Strength
The strength of the company lies in innovations it keeps on doing to make the product more
versatile in nature. The focus of the company is largely over the experience of the user which
enables consumers to use it for various purposes and to follow the fitness regime in a more
serious manner. It has the add-on features of uploading the data by using new apps such as
Lose it and Microsoft health vault. It also has wireless technology of operations, high comfort
level, portable with light weight, etc
Therefore, it not only proves useful for the consumers in their fitness regime but also it
allows them into reward points from their daily activity records.
Weakness
The weakness of the company’s products lies in continual indulgence of the company over
the technological improvements which shows that the company technicians itself is not
satisfied and confident in the sustainability of the products in the market. The company
understands that even if it keeps on adding new features to the clip-on wrist band but still it
stands nowhere in terms of technology up gradation as compared to Apple and similar high
end brands. It also has plain design and display features which reduces its attraction for the
consumers.
2

Opportunity
The company has good opportunities to expand its business with that of corporate customers
which can be seen from the establishments of the partnerships with several corporate
companies like BP, Time Warner, BOA, etc. Also, the appearance of the Fitbit wrist band has
become more fashionable and accessory oriented which increases its market among
consumers who look for stylish wrist bracelets in different metals. Therefore, company can
expand its market in developing countries like India and nearby countries where people have
become more health conscious and spending more over health concerns. There has been rise
in market sales of wearable goods which is an opportunity for the company to reap the
benefits by spending more over advertisements of the brand.
Threat
Fitbit faces threat from companies like Apple and Chinese brand Xiaomi which has already
captured around 40% of the total market both oversees and international domain. Since there
is fast changing consumer environment which can easily shift their choice of brands from one
to another, the company faces challenges in terms of upgrading the products features and
looks over short span of time...