Rivalry Power ( High )

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• Rivalry Power (High)  Different products with same skill and cheap price.  Fast industry growth rate make it attractive to other competitors.  New technologies keeps up showing in the market. • Power of Buyers (Low)  Relatively high cost of switching make the consumers have low power.  Large number of users reduce their power. • Power of Suppliers (Low)  Volume of business is critical for supplier, which make suppliers have less bargaining power.  High competition between suppliers in this industry make them have less power. • Threat of Substitutes (moderate)  Mobile fitness applications, these applications can be run on the background of the mobile OS and give some fitness trackers’ features  Apple Watch. • Threat of New…show more content…
By facing strong competitors, Fitbit struggles because of their global penetration, strong consumer base and higher financial capacity. 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. Fitbit Strategies Analysis Positioning: Fitbit adopts product differentiation, and their marketing focus is on the fitness performance tracker and sleep quality monitor wristbands. Product Strategy: Fitbit built all the features that it promises to present to their consumers. The company has been building the Fitbit brand as focusing on the product, but recognizes the market’s enormous potential on wearable technologies. The most recent strategic decisions changed the short term perspectives and aims to make a transition making the company a digital healthcare platform development company that links together disparate segments in the U.S. healthcare system by supplying them with consumer wellness and fitness data, said the company CEO, James Park. “While Fitbit is known as a consumer brand, the real potential of our brand and technology is to become a digital health platform that improves people 's health and integrates into the healthcare ecosystem,” said Park to Wall Street analysts on February 22, on the company’s year-end earnings call.
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