Discussion Forum: Fitbit Inc.
Fitbit Inc is an American company with its headquarters in San Francisco. It was founded in the year 2007 by Eric and James. They use a wireless technology that brings a new experience to fitness and health. They create wearable products such as wristbands, which can measure a person’s daily steps: the calories burned, the rate at which the heart beats, time needed to exercise and the person's sufficient sleep. During its initial stages, the stock increased by 52% when they invented the smart wearable. Competitors Such as Apple Inc., Alphabet Inc., and others offer the same functions thus leading to poor performance of Fitbit Inc. According to Reuters Fitbit Inc. has reported a 40.8 percentage income loss on 3rd may 2017 as the company is struggling with the rapidly rise in competition from other stakeholders. The company posted a loss of $60 million or 27% per during the first Quarter of April 7017 of $11 million or 5 cents per share in the past year Revenue reduced to $298.9 from $505.4 million (Mcdermid, 2017).
Due to the poor performance, the investors are reluctant to invest in the company hence they prefer to go to other stakeholders who are performing well in the industry. To counter the competition, Fitbit Inc. intends to introduce a different product which rumors has it that they plan to produce a new smart watch that would boost the company’s revenue and hence reduction of competition. The aspect would expand both the company’s stock and income and also not scare away the investors (Farle, 2017)
Fitbit should use these competitive strategies: they should look at the target market to see where there is need to fill a void and come up with the solution to fill it (Prahalad, 2004). They should always be customer centered by producing the wearable that the customers want and always stay on their toes to be the first to fulfill the customers’ needs. Fitbit Inc. should avoid competing for pricing with the competitors and make sure their services stand out from those provided by the other stakeholders in the industry.