Leadership Management: Fitbit Inc. Case Study and Strategic Analysis

This discussion post analyzes Fitbit Inc.'s business model, marketing strategies, and financial performance. It examines Fitbit's approach to product differentiation, the challenges it faces from competitors, and its marketing mix, including product range, pricing strategies, and promotional activities. The analysis highlights the decline in market share and revenue and discusses the company's promotional strategies and product positioning. The post references the company's website for additional information and provides a comprehensive overview of Fitbit's competitive environment and strategic positioning within the fitness technology market. It addresses issues like customer reactions to products and the impact of pricing on market share.

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Discussion Post
The business model which has been used by Fitbit Inc is to provide the different
customers with various portable kind of equipment that will be beneficial for the customers in
measuring the health-related activities along with the image of the societal position
(Fitbit.com, 2019). The business model which has been applied by Fitbit Inc is unique as it
tries to meet the different needs of the customers in return to the cost and the model is
performing well. On the other hand, Fitbit Inc has been facing immense rivalry of different
suppliers of China as they sell similar kinds of products at less cost. Additionally, the
product differentiation approach is the appropriate proposition which is followed by the
company wherein it helps them in creating brand loyalty among the diverse clientele. With
the help of the same, Fitbit can gain proper market share by providing perceived quality along
with building loyalty among the different clienteles in the market as well (Chernev, 2018).
On the contrary, the particular differentiation aspect is not being successfully adopted
by the organization as the other competitors such as Samsung and Apple which are
performing and offering customers with unique services. With the help of financial data
analysis, the share in the market of Fitbit Inc has fallen to a large extent as there has been a
reduction of 16% in the two years which is from 2014-2016. On the other hand, revenue of
the organization has gone down to a large extent of about 30% which is creating a negative
impact on the organization in the competitive business environment.
The overall marketing mix of Fitbit Inc is that the products which have different
varieties starting from watches along with hand bands. The product range is high as it
includes the heart rate along with quality inclusive of personal metrics involved in fitness.
The strategy of pricing which has been included in Fitbit Inc is to provide the best value at
the lowest price (Mcdonald, 2016). The product positioning is positioned logically, and they

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are additionally keeping products at competitive prices. However, there will be fluctuation in
prices as there can be the development of new technologies and the incorporation of such
technologies by Fitbit Inc.
The promotional strategies used by Fitbit Inc includes digital marketing and health
magazine along with personal interaction with the customers. Through these strategies, it will
be helpful for the company in reaching the consistency of message to customers, and this will
motivate the customers in leading a healthy lifestyle. Lastly, the place wherein Fitbit products
are available is inclusive of Walmart and other sports companies which have access to sell
such products (Festa et al., 2016).
From the above, it can be analysed that previously Fitbit Inc faced various challenges
in the market as the customers faced different kinds of adverse reactions on the skin and the
other issues related to the costs of the product.

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References
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Festa, G., Cuomo, M. T., Metallo, G., & Festa, A. (2016). The (r) evolution of wine
marketing mix: From the 4Ps to the 4Es. Journal of Business Research, 69(5), 1550-
1555.
Fitbit.com (2019). Fitbit Official Site for Activity Trackers & More [online]. Available at:
https://www.fitbit.com/ (Accessed on 30 Jan. 2019).
Mcdonald, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. The
marketing book (pp. 108-142). Routledge.