Fitbit: Marketing Strategy, Competitive Positioning, and Analysis

This report provides a comprehensive analysis of Fitbit's marketing strategy, competitive advantages, and overall market positioning. It begins with an introduction to Fitbit and its business operations, followed by an in-depth evaluation of competitive advantage, discussing various academic perspectives and models such as Porter's strategies and SWOT analysis. The report then examines the impact of competitive advantage on the success of marketing strategies, highlighting key elements such as economic and psychological needs, marketing mix, and consumer requirements. A significant portion of the report is dedicated to analyzing Fitbit's competitive advantages, employing frameworks like Porter's strategies, SWOT analysis, and Porter's Five Forces to assess its strengths, weaknesses, opportunities, and threats within the market. The analysis covers aspects like bargaining power of suppliers and buyers, the threat of substitution and new entrants, and industry rivalry, offering insights into Fitbit's ability to outperform its competitors. Finally, the report analyzes the organization, offers recommendations for marketing strategies, competitive positioning, and marketing mix, concluding with a summary of the key findings and their implications.

Marketing strategy

Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of Competitive Advantage on success of marketing strategy..............................................5
B) Analysis of Competitive Advantage of FITBIT.........................................................................6
Analysis of Organisation and recommendations for marketing strategy, competitive positioning
and marketing mix...........................................................................................................................8
INTRODUCTION...........................................................................................................................8
A) An analysis of the marketing situations of Fitbit....................................................................9
B) Proposed marketing strategy, objectives, strategic focus, competitive positioning and
marketing mix............................................................................................................................18
CONCLUSION..............................................................................................................................23
REFRENCES.................................................................................................................................24

INTRODUCTION
An American firm known as Fitbit operates a business of wearable that are able to track
the fitness. The business was found in the Delaware in the year 2007. The thought of the
marketing director of the business was asked on how the business has a competitive advantage
over the competitors. This report provides the brief evaluation for the competitive advantage
along with the impact of the advantage in the success of the marketing strategy. This report also
provide with the analysis for the competitive advantage of the Fitbit as well as how this will
result in the winning the share to the Fitbit over the competitors.
MAIN BODY
Evaluation of competitive advantage by academics
The scholars as well as the business organisations are focusing on the competitiveness
and it is been the central theme for the academic field for arguing in the strategic management.
Wheelen in his paper mentions that the when an organisation acquires the attributes that help the
organisation to perform better than the competitors then the competitive advantage is acquired by
the organisation (Wheelen and et.al, 2017).
Udriyah emphasis that the competitive advantage is referred to as the ability of the
organisation that is gained by the resources as well as the attributes for performing at high level
than the others in the common market or industry (Udriyah, Tham and Azam, 2019).
The given two definitions use the common nominator that is the set of attributes; Bruijl
suggest that the value of the firm is grown by the competitive advantage by providing more
customers that is more than the cost of creating by the firm (Bruijl, 2018).
I like to adopt the definition given by Porter as he use the key word in the description that
is “value”, in marketing strategy it is the core factor.
Creating as well as understanding the Competitive Advantage
The frequent recognition as well as focusing of product approaches that are differential,
collecting intellectual property rights, reshaping the capabilities that are superior and utilisation
of the unique techniques can help the firm in achieving competitive advantage. All this will help
to make the customer’s mind better for the company (Koch and Windsperger, 2017). The
company are now exposed to the environmental as well as technological information due to the

current advancement in the technology and the globalisation which can be used in different ways
for achieving the competitive advantage in opposition to the competitors in the market.
The strong pressure of competitiveness in the economy is making it difficult for the
company to achieve the competitive advantage. This is because the rivals in the market can copy
the comparable factors such as technologies, resources and information. The firm need to
manage and take time for the identification of the sources that are used as the competitive
advantage by using the SWOT analysis of the framework as well as the Porter’s Five Forces
Model.
For example, three strategies of Porter can be used for the purpose of creating competitive
advantage (Mungai and Ogot, 2017). Table below explains each of the strategy-
Cost Strategy
This involves ability of an organisation to produce their offering at
lower cost than their competitors. Firms that are capable of providing
same quality product or service as their competitors at a lower price,
this gives them competitor advantage over their competitors. Customers
also get value in terms of quality product or service available at a lower
price.
Differential Strategy
This is a strategy in which product or service needs to be created in a
way that is more attractive than product or service of the competitors.
Firm requires strong research and development and innovation
practices. Differentiation involves delivering higher quality products
and advanced features in the products and for these products customers
are willing to pay higher prices.
Focus Strategy
This is another strategy in which firm targets few and selected market
instead of targeting overall market for the company. This strategy is
useful for smaller businesses with limited resources. This strategy is
used by firms so that they can focus on requirements of customers and
can improve their day-to-day lives. Certain firms also allow customers
to develop their products and services when employing this strategy.
However, critical analysis of strategies by Porters leads to conclusion that these strategies
also have their limitations. One of the limitations associated with the Strategies and model is that

it is outdated and does not consider impact of social media on strategies of organisation. In
addition to this model was developed when competitive advantage and profitability of business
were based on size and scale of business.
SWOT analysis is another model through which competitive advantage for organisation
can be explored. This approach can provide in-depth valuable information about organisation
and its marketing strategy.
SWOT when critically analysed outlines that it also have certain limitations. SWOT
analysis only considers those factors that are definite and this is why it ignore all those possible
factors that can affect different areas of the model like strength weakness opportunities and
threats. This is because factors can be both strength as well as weakness if they are two sided.
Along with this SWOT analysis also do not help in identifying any alternative decision and
issues that needs to be considered at priority (Vlados, 2019).
Impact of Competitive Advantage on success of marketing strategy
Competitive advantage is effective that differentiate organisation from its competitors
and enables organisation to attract more customers and get benefit over the price and brand
loyalty. Competitive advantage are important as they provide options for strategies of firm to be
in a unique position and to achieve and structure that cannot be developed by competitors and is
hard to be achieved by competitors. Competitive advantage required firmsto be agile and flexible
Strength
This is concerned with element and
factors associated with a firm that
provides it advantage over its
competitors.
Weaknesses
This invoolves factors and elements of a
firm that creates challenges and
disadvantgae for the firm.
Opprtunities
Elements and opportunities available for
a firm that it can exploit for benefit and
advantage and for effective achievement
of organisational objectives.
Threats
Factors in business environment that can
creates problems and challenges for the
firm and create difficulty in achievement
of objectives.
SWOT

so that they can operate in different conditions of uncertainty and with help of measure that are
proactive when dealing with competitors (Cheah, 2020).
Competitive advantage of the firm has impact on marketing performance along with
sustainability finance and innovative practices of firm. Competitive advantage also have link
with marketing mix management perception and needs of consumers. Competitive advantage is
and very important element of marketing strategy and its success and without it survival and
growth of firm can become challenging. Following chart outlines role of competitive advantage
in relation with requirements of consumers and marketing strategy-
B) Analysis of Competitive Advantage of FITBIT
There are different types of Framework that can be used for analysis of competitive
advantage and these are-
1. Porters' the strategies of competitive advantage: Earlier it was identified that firm can use
differential strategy for competitive advantage. Comparative advantage of Fitbit was based on
differential strategy. Until 2015 company head 7 products available in market and were designed
in a way that can fulfil requirement of different customers. In this some of the products for
simple needs whereas other products work for more complex needs. Differentiated product
strategy enables Fitbit to cater variety of customers having different requirements of specific
Consumer Requirements Economic needs
Availability
Performance
Reliable
Durable
Productive
Psychological needs
Individual Image
Feasibility
Reduced Risk
Competitive
Advantage
Marketing Mix
Product
Price
Place
Promotion
People
Physical evidence
Process

function and competitors of Fitbit were not able to provide it (Baalbaki, Hoffman and Gilliard,
2017).
2. SWOT Analysis: SWOT Analysis help Fitbit to realise that there is an opportunity for them
through which they can attract and retain users. Company had a focus on creation of different
proposition that is provided by hi tech manufacturers. Technology was used by company so that
people become healthier and more active giving them data and motivation along with guidance
in form of wearables. This involved software and services that was not implemented by
competitors. This enabled Fitbit to fulfill demand of registered customers in a unique and
efficient way and it became difficult for competitors to follow what they are doing (Green and
et.al., 2020).
Identification and utilisation of focused differentiation by Fitbit company not only
focused on individual customers but also started an advanced measure to include company in
corporate Wellness market. This is a market in which competitors are firstly ignored and
underrated. Fitbit found an opportunity through which it can transform fitness tracking industry
through a product that is social interactive and Stylish.
In addition to this competitive advantage of Fitbit can also be explained through Porter's Five
Forces Framework. This model consists of impact of external environment on ability of firm to
outperform in market (Bruijl, 2018).
3. Porters’ Five Forces
Bargaining Power of Suppliers: Suppliers of the firm when are in a superior position they can
negatively affect margins of firm. Suppliers in superior position can use their position for
obtaining higher prices from forms for the supplies and this can impact your overall profitability
in a negative way for firm. Fitbit is working on this through introduction of variety of variables
from product offering simple features to high-end products. Is product required different level of
suppliers and through which power balance in supplies can be maintained by firm (Frenzel,
2019).
Bargaining power of Buyer: Buyers are willing to buy best of available products at a minimum
price. This is one of the elements that create pressure on profitability of firm and smaller and
more powerful customer base have more bargaining power. Fitbit is managing this challenge

through multi level structure of in market in which it can target variety of customers with
different purchasing power.
Threat of Substitution: This involves that when new product or service are there in market to
cater similar customer requirement it is likely to negatively affect profitability of market. I have
managed to overcome this challenge by identifying different customer need effectively. Focussed
differentiation of Fitbit serve different types of demand in market and because of this need for
substitution reduced.
Threat of New Entrants: New entrants in industry are likely to bring new capabilities and new
ways of operation and this create pressure on existing firms in industry. This pressure can be
because of low pricing strategy and cost reduction and by creation of new value for customers.
Fitbit is managing the challenge by creating Economics of scale and also by increasing its
capacity so that it can reduce fixed cost which will affect overall cost of products (Olsson and
Ivinskiy, 2019).
Industry Rivalry: Intensity of competition among firms operating within an industry reduces
prices of product and lead to decrease in overall profitability of the industry and firms. Fitbit
operates in a highly competitive market which is highly unpredictable towards changes.Process
of Fitbit in 2015 was linked with important business decisions of firm including the partnering
decisions with other forms like Sketches and Strava and also their product upgrade including
multi sport tracking and heart rate capability along with enhanced features of Fitbit app.
Collaboration with competitors in market increase the market size of Fitbit along with
overcoming competition and it became able to reach to measure corporate and other reasons is
which helped Fitbit to stay as one of the player in market.
Analysis of Organisation and recommendations for marketing strategy,
competitive positioning and marketing mix
INTRODUCTION
In 2007 co-founders of Fitbit, Eric Friedman and James Park found that wireless and sensor
Technology is advanced enough to an extent where this technology can you bring an outstanding
experience for health and fitness industry. Considering this both of them started their journey to
create variable products that could change the way people move (Haghayegh and et.al., 2020).

Marketing director of Fitbit was asked to prepare getting strategy for the company for next 18
months and report include-
A) Analysis of Marketing Situation of Fitbit
B) Proposed Marketing strategy, including objectives, strategic focus, competitive positioning,
marketing mix and Recommendations
A) An analysis of the marketing situations of Fitbit
Following analysis is based on process suggested by Graham Hooley.
BUSINESS PURPOSE:
Purpose of form can be examined with help of its mission that involves what business it
is and what business it wants to be.
As stated at official website of Fitbit mission of Fitbit is to empower and inspire
customers to live a healthier, more active life. Fitbit design product and experiences that fit
seamlessly into life of customers so that they can achieve their health and fitness goals whatever
they are (Classen and et.al., 2018).
The business of Fitbit:
Fitbit is an American digital health and fitness brand and is known for its fitness tracker
that has helped in developing friend of wearables. Interest of individuals In fitness tracker as a
reducing and this is why company have started its search for new areas of growth. Considering
this Fitbit started to shift its focus on smart watches as announced by company in 2018. Along
with this it is trying to collaborate within health sector so that it can move beyond selling devices
to consumers (Ko, 2020).
Where Fitbit Inc. is heading:
As per James Park CEO of Fitbit Inc. Company wants to diversify as a business and it in their
diversification health solution business is included. According to him they are committed throws
off known device revenue and that is going to come from health solution on business to business
side and from services like Fitbit coach. I believe that even though there are changes in
spreadsheet of Fitbit mission of firm still stands. New solutions and diversification and business

to business approach are likely to bring new and exciting experiences for firm as well as its
customers. This is why it can be said that core purpose of Fitbit has not change and activities of
Fitbit are still within health and fitness domain (Benschneider, 2018).
THE CORE STRATEGY:
Analysis of Fitbit as an enterprise and it's environment including internal and external
environment, help us in understanding present main strategy of Fitbit.
Wearable business of Fitbit has declined but there is a increased integration into health
care system and this is likely to bring industry to life. From the point of an organisation
wearables can stand alone as a business by generating increase revenue through health care
system. Sale of subsidised devices and software to businesses Fitbit is working on facilitating
businesses to manage Wellness programs for their employees. For this brings an opportunity for
developing a new stream of revenue. In addition to this Fitbit can also move towards business
environment while retaining its existing business. The company will become able to make a
considerable impact and develop its place into health ecosystem and will be required to maintain
consumer brand.
The customer business of Fitbit comes in effect in the current environment where the
ecosystem of the health care made it necessary for the consumers and the product to engage in
what they want to use. For entering into the business that is new the Fitbit need to address few
concerns for their external environment that I will address in the section of External Analysis
later.
Position of Market
The study of competitive advantage as well as the target needs to be defined by the firm
for having a competitive position in the market. The initiative of the Fitbit in the fitness tracking
industry made it the leading brand and in the global market share it is standing next to the Apply
and Xiaomi Corp (Bowers and Prato, 2018). The position of the Fitbit in the market as the leader
is at risk due to the key factor that is substitutability or imitability and hence making the position
less sustainable.
Fitbit for mitigating this need to be involved in the differentiation strategy along with the
board focus on the market, increase the customers that are willing to pay for the business by

improving the features and premium design that can be done by producing smart watches, the
firm can differentiate the features of the customers for enhancing the values and moving into the
health system along with diversifying to B-to-B.
The given chart will depict the position of Fitbit as the wearable market position:
Competitiveness
The heart of capitalist system is the market competition. The market competition is the
key driving force that is required for the creative innovation; it is the mechanism by which the
multitudes of the goods and services are balanced for the demands and the market supplies. The
individuals find it as the institutional setting for the having their free space for best living as well
as earning in the society (Koval, Polyezhayev and Bezkhlibna, 2018). It is inevitable for the
competition to be in the market where the forces of supply and demand exist. The competitive
position of Fitbit can be looked both externally as well as internally:
❖ Internal competitive position
The internal factors of the firm are those that can be controlled by the firm. The
frameworks like VRIS/VRIO can be used for examining the internal analysis. As explained by
the Galati and Tulone that after the firm realised and identified the state of rarity, substitutability,

value and imitability of the capabilities and resources then the firm have to organise in way for
exploiting the resources strategically, when the firm is able to do it successfully then it can enjoy
the sustainability of the competitive advantage for a long time (Galati and Tulone, 2019).
The sustainable and more competitive advantage can be secured by Fitbit by exploiting
the variety of resources, skills, competencies and assets that are:
Brand – Fitbit is the leader in the wearable fitness brand due to initiative advantage as well as
the pioneer role. The threat of the new entrants in the market is reduced for Fitbit due to the
valuable resources that are the leading name and position. Even if the similar premium brands
(e.g. Apple and Kate Spade) are providing with the products of the high- quality, Fitbit has
sustainable brand.
Technology - Both the software as well as hardware technologies are designed by the Fitbit for
their products. The customer data thus collected and tracked with the software that allow the
customers to use it in the sustainable and meaningful ways. The Fitbit is bringing new algorithms
to the market that is innovative as well as new along with the sleekly designs and the capability
to syncing wireless are appealing to the customers. The features of the products can be catch up
by the competitors in the market and the innovative features and designs will not remain rare.
The products already present in the market have the same qualities and challenge that the
resources are not costly for the imitation and provide with many substitute of Fitbit in the
market. The Fitbit use the pioneer technology for overcoming these challenges by updating it and
exploring new adventures in the sector of health (Mathews and et.al, 2019).
Platform – Fitbit is committed for having an Application Program Interface-API that is open and
will provide programmatic access to the third-party developer’s for providing the health and
fitness apps to interact on the platform provide by Fitbit (Bamberger and Lobel, 2017).
There are many apps like MyFitnessPal as well as Weight Watchers that can be
connected with the platform of Fitbit, this will improve the value and help in reducing the threat
of competition as the products are linked to the platforms and the customers get the experience
they want.
Innovation is encouraged by the openness that helps Fitbit to identify as well as take advantage
of the opportunities in the future. The open API in the fitness tacking wearable is seen in the
imitated products in the market. The API ecosystem of the already established by the Fitbit that
includes the third party apps and thus making the platform rare as well as difficult to substitute.