Business Case Study: PESTEL Analysis of Fitbit Inc.

This case study presents a PESTEL analysis of Fitbit Inc., examining the political, economic, social, technological, environmental, and legal factors influencing the company. The analysis highlights the significance of technological and environmental factors for Fitbit's future, considering competition, regulations, economic conditions, social trends, and technological advancements. It also addresses legal aspects like data protection and environmental regulations. The report concludes that technical changes and environmental considerations are crucial for the company's growth, and it references several sources to support the analysis. This assignment, contributed by a student, is available on Desklib, a platform that provides AI-based study tools for students.

Running Head: ANALYSIS 0
Analysis
Report
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ANALYSIS 1
PESTEL ANALYSIS
It is used for finding different factors of a company Fitbit Inc., which was founded in
2007. Fitbit should focus on technological and environmental factor. In addition, both factors are
making this industry better in future.
Factors Fitbit Inc.
Political Factor  Fitbit faces competition at international level, as different
vendors are entered in this field, such as Apple, Xiaomi,
Samsung and Garmin.
 Level of corruption is depend on the regulation in technical
sector
 Local and national government interfere in development of
scientific and technical instruments
 Fitbit Inc. should follow legal framework for contract
enforcement
 They should care about their intellectual property
 Always favored trading partners
 They should maintain a pricing regulations
 They must aware about tax rates and incentives
 They should provide benefits to employees
Economic Factor  Economic system of a particular country affects it. Revenue of
year 2014 was $ 745,433, it increases until 2016, but in first
quarter of 2017, it goes down.
 Government intervention in the technical market
 Host country currency stability and exchange rates
 Large manufacturing cost of new products. Fitbit expect revenue
of $2.4 billion to $2.5 billion because of new products.
 Labor cost, Research and development of new product’s cost was
too huge.
 Skill level of employees

ANALYSIS 2
 Infrastructure quality
 Unemployment rate
 Financial market efficiency as per Fitbit Inc. (bohatala, 2016).
Social Factor  Population skill level and demographics
 Class structure in the society, Apple is producing so many
products. Therefore, people believe on them.
 Entrepreneurial spirits, as some society support it while some do
not (fernfortuniversity, 2018).
 Culture as per social conventions and gender roles
Technological Factor  Latest technological changes by company competitors, Fitbit
faces different challenges, such as Allergic reaction, too much,
information, Antenna issue, design flow, privacy issues and cost
of launching new products.
 Impact of technology on products
 Cost effect of instruments and industry
 Impact in technical industry on value chain structure
 Technological diffusion rate
Environmental Factor  Fitbit should launch new devices in low cost and environmental
friendly.
 Climate change
 Recycling as Fitbit products are not recycle
 Pollution regulation for technical instruments industry
 Laws regulating
 Waste management
 Greenhouse gases emission, other companies are produce low
greenhouse gases and most of the people purchase those products
and service that produces low carbon.
 Supporting renewable energy
Legal Factor  Discrimination law
 Data protection, such as data breaches
 Anti-trust law in that industry according to country

ANALYSIS 3
 E-commerce and consumer protection
 Health and safety law of scientific and technical industry
 Employment laws
 Copyright and patents
Technical changes are always required for customer’s attraction and renewable energy uses make
it different from others. It makes it better and reduces cost. Technical changes create more
business for the company as innovations attracts customers. Environment factor makes industry
strong and it provides benefits in terms of business. Inventors are more interested in those
industries that are environmental friendly (blueoceanuniversity, 2018).

ANALYSIS 4
References
blueoceanuniversity. (2018, January 26). PESTEL / PEST Analysis of Fitbit Inc. Retrieved from
blueoceanuniversity.com:
http://blueoceanuniversity.com/frontpage/pestelcoanalysis/27866-fitbit-inc
bohatala. (2016, December 22). Fitbit Tracker SWOT and PESTLE Analysis. Retrieved from
bohatala.com: https://bohatala.com/fitbit-tracker-swot-and-pestle-analysis/
fernfortuniversity. (2018, December 12). Fitbit, Inc. PESTEL & Environment Analysis. Retrieved
from fernfortuniversity.com:
http://fernfortuniversity.com/term-papers/pestel/nyse4/3544-fitbit--inc-.php