Fitbit Incorporated Is A Good Investment

Fitbit, Inc. is a private start-up company specializing in consumer electronics related to the health and fitness industry. The company is headquartered in San Francisco, California and was founded in 2007. The Co-founders and managers are James Park and Eric Friedman. Fitbit, Inc. manufactures and markets products which track people’s fitness activities, routines, nutrition and sleep. The founders believe that Fitbit products will help transform people’s lives with these wearable devices that can help people monitor and be inspired to increase their daily routines. According to Fitbit.com, “Eric and James embarked on a journey to create a wearable product that would change the way we move and

The best part of the Fitbit is not the watch itself, but the app. The app syncs with your device via Bluetooth and keeps track with the device throughout the day. I quite enjoy this feature as it allows me to wear the device and not worry about keeping track of my steps, my sleep, and my heart rate.

A beneficial effect of Fitbit is that it tracks any activity that is done, which lets the user know about their health and progress, if any, that is made (2). The odds of a Fitbit user caring about their general health are fairly high. With fitbit, the user knows what their heart rate is which can be helpful if a user has a heart condition in which they can not overexert themselves during an activity. Fitbit also lets the user know how well they sleep and how many hours that were slept (7). This useful information has an effect on society in which the user will have knowledge of their overall health and will know if they are unhealthy and/or have a possible abnormal heartbeat or rest period. With this information they will be able to talk to a doctor and get medical help if necessary. A harmful effect of Fitbit is that it could be inaccurate in providing the user with correct data. When someone buys any type of fitness tracker, accuracy is probably one of the top things on a list of musts this device must have. A study was conducted in which the Fitbit heart rate monitor was inaccurate by 20 beats per minute (5). People that have a heart condition can be negatively affected by this which could put their health at risk

Today, consumers can buy wristbands that count steps and track sleep, athletic shoes that monitor fitness, watches that double as phones, and smart glasses that function as a computer or GPS. Fitbits and apple watches are two of the most popular wearable technology in 2016 (according to www.cnet.com).

The article talks about how for Fitbit going into the smartwatch area could be dangerous for Fitbit because how is it going to compete with Apple and come out relatively ok. The advantage that Fitbit has is that its smartwatch can work on either Android or Apple phones, so it is not limited like the Apple watch. Currently, Fitbit is in a stage of growth, but that does seem to be stagnating a bit. According to Fitbit’s preliminary fourth quarter results from 2016 they reported that they expect to have revenue between “$572 million to $580 milling” (Fitbit announces,

Although personally, I believe Fitbit like yoga pants are more of a fashion accessory than life changing. In our generation, today, we have taken many things related to fitness and have made them a trend. There has been a good amount of research studies that have based their hypothesis on the Fitbit, or use the Fitbit in some compacity during their research. Some of the studies I looked at explained that the Fitbit tracks many aspects of your life, but it is not something to rely completely on. It would be more of a complimentary product than a center stage product. I wasn’t able to figure out who exactly funded these studies, but some were posted in the clinical journal of pain, and the journal of science and medicine in sports. I, myself, didn’t sense or see any forms of quackery. These devices are sold in store as well as online. The claims aren’t definite more motivational. On the website, I didn’t see any testimonials

Consumers are becoming health conscious and Fitbit’s is certainly in the right direction to help them with the wellness progress. However, given the fact Apple products crushed many companies and its iWatch is a key competitor for Fitbit Inc. when it comes to wearable products. Garmin also comes with GPS technology that certainly adds more values to its wearables.

Over the past months I’ve looked at the closing price every Friday of three different stocks. Those stocks were the Dow Jones Industrial Average (INDEX:DJIA), Fitbit Inc. (NYSE:FIT) and GoPro Inc. (NASDAQ:PRO). Each stock has fluctuated differently over the past two months and each has their own reason as to why the company went up or down.

According to Hoover, 2015, the Fitbit Corporation constructs the most widespread devices in the materializing fitness tracker marketplace with approximately 11 million sold in 2014. Their lineup of six wearable designs record steps, calories expended, and duration of the activity; supplementary dimensions calculated by the spectrum of Fitbit devices include sleep interval and quality, heart velocity, and distance, and route. Each Fitbit device has the ability to synchronize with computers and some synchronicity with applications on mobile devices to illustrate feedback. Greater than 45,000 retailers stock the Fitbits including Best Buy, Target, Dick’s Sporting Goods, as well as, Amazon.com. The company received $380 million in a preliminary

Expected technological advancements in health products are likely to contribute to greater spending on health. The FitBit as a technological health device shall greatly meet local consumer’s needs.

This report presents a compilation of an analysis and evaluation of Fitbit Inc., its current market positioning, some of the company’s challenges, and a strategic plan developed by the Ebi Team. The interpretation and analysis are based upon facts and figures retrieved from Fitbit company and industry trends. The report provides a description of the company and includes its introduction, a history covering major events and the key facts related to the company.

This company is on social media but they are not on as many sites as Fit bit. Garmin VivoActive is on Twitter, Facebook, Instagram, YouTube, and Pinterest. They are on a lot of social media sites but, not as many as Fit bit. Garmin offers a lot more products besides fitness trackers and accessories. They have a wide range of products so they do not need to focus solely on their fitness trackers. Garmin has been a thriving company for several more years than Fit bit has. Fit bit seems to be the leading company when it comes to fitness trackers. Garmin is a more seasoned company and has several other products that are why they have been in business longer than Fit

Recently Fitbit came up with new tracker that was designed to look more like a smart watch in order to attract new consumers and enter a new segment, which despite of lots of negative comments, drastically increased the company’s sales and revenue on the last quarter of 2015.

The profile of the customers can varied. Fitbit is targeting people seeking to improve their lifestyle and to be healthier. Their devices give a fun way to do so. The defined profile of a Fitbit customer/user would be a person with a high average income and comfortable using technologies. The customers would own a smartphone and be health conscious or seeking to become more careful with their lifestyle. Social media users, interested in new technologies as well as an active individual are profiles that also fit into the target audience of Fitbit. People in their 20s, 30s and even 40s are more likely to purchase the devices. (Sadaranganii, 2014)

The Bitfit needs to provide numerous applications and aids that replace multiple applications and recording devices making our product the easiest and most reliable health managing device within the market. Our advertising must justify our higher prices convincing consumers our product delivers the multiple tools monitoring health and wellness. We’ll need to provide various models from a basic Bitfit with the essentials to a deluxe version providing and replacing numerous applications providing the 24/7 accountability consumers are searching for. We need to establish demand then leverage our position with discounts on our higher end models but not lowering the overall price of all our products. Lowering price to meet surplus equilibrium will drive the demand down devaluing our product.