Fitbit: Riding the Fitness Wave to Glory Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Fitbit: Riding the Fitness Wave to Glory Case Solution

Macro environmental factors have affected Fitbit

Demographic

The health conscious consumer demographics at the forefront of the adoption of fitness tracking devices that help Fitbit to launch “next big leap”; smartwatch and is now intending to add features into its existing fitness tracking devices of alerts or alarms about dangerous health condition and diseases.

As the health conscious consumers tend to influence the advancements in the fitness tracking devices, resulting in the advance digital technologies adopted by Apple and launched Apple Watch which has wowed the customers as a wrist worn extension with unlimited app potential, thus pressurizing Fitbit to launch new technological devices in the market that best fits the diverse needs and changing preferences of the customers.

Economic

The economic factors have greatly affected the Fitbit’s continued growth in a way that the products offered by Fitbit are affordable and could be accessed by anyone seeking to spend money for fitness and health. Fitbit’s business provides employment opportunities to other companies, because of the reason that the employers are looking for the people who are physically healthy and fit and could actively make contribution towards achieving the common goals of the organizations.

Technological

Since the digital technology advances on each and every front; it is clear that the fitness tracker is only a feature due to which the company lagged behind its competitor Apple, when it launched highly featured Apple Watch in the market and attracted the wider base of customers looking for an advanced fitness tracker. Additionally, Google Fit and Apple Health seem to threaten the survival of Fitbit, with compatibility across mobile platform, making Fitbit subjected to suffer if thedisruptive forces speed up and the technology changes. Thus, it requires Fitbit to have better disruptive management and speedy innovation in order to retain its customer base.

Political

Another macroeconomic factor that has influenced Fitbit, includes: government legislation, such as Health Insurance Portability and Accountability Act (HIPAA) when adopting the digital tracking device. Additionally, the HIPAA has added the legal component to concern over the data privacy of customers, due to which Fitbit had to achieve the HIPAA compliance due to the increasing concern and fear amongst the employees regarding the security and privacy of their data.

Cultural

One of the macroeconomic factors that has influenced Fitbit,includes the cultural trend towards an increased awareness of fitness and health, hence generating many businesses for the company in a way that the company began to incentive well-being as well as health benefits to the employees, hence taking benefit of the features of wearable technology offered by Fitbit. It is because of the fact that the organization came to realize that the physically healthy and fit employees are meant to be more productive and they contribute more to the overall growth and success of the companies.

Fitbit overcome the threats and obstacles it faces

Technological advancements

Despite of an impressive success and growth of the company in shorter period of time; Fitbit faced various challenges that decelerated its total growth potential. One of the most significant challenges is technological advances, which allowed the development of wearable market. Although the industry maintains its position, but it is not guaranteed that the leading position of Fitbit would provide long term success in the highly competitive market. The company is positioned in an emerging market, which tends to represent an extremely competitive landscape and a rapidly growing consumer demand, requiring Fitbit to evaluate its current strategy make fundamental adoptions in order to remain a strong player in the market.

Fitbit could overcome the threat of rivalry by continuously analyzing the effectiveness of its marketing strategies, keeping the track of its market rivals while communicating& delivering its USP to the market. Also, the company could develop partnership with research institutions &companies offering diagnostic and medical capabilities. By adding this feature the company would be able to differentiate itself from its competitors.

Partnership with data-security companies

In order to address the customers’ privacy concerns; the company is advised to partner with data-security companies and broadcast the partnership to the public with the use of the social media campaigns to thrive transparency and trust with customers. By doing so, the company would be able to demonstrate the Fitbit’s commitment and responsibility towards valuing the privacy of health and fitness data of the customers.(Kieran, 2020).

Customerretentionvia consumer’s engagement for the longer relationship with brand

Another issue that the company is facing, is to retain the customers and long term engagement of customers with the products offered by Fitbit. The company needs to focus on investing not only in technological improvements but it should also try to strengthen its consumer’s engagement for their longer relationship with brand. The increased retention of customer is followed by the provision of advanced and high quality devices that meet the desires and preferences of the customers, reward loyalty, solve customer issues, build trust through relationships, leverage the customers’ feedback surveys and over drive on the promise made by the company. The company should implement an integrated communication plan to support adoption of products and advertise the health concept as continuous self-improvement and encourage its customers to challenge themselves with higher goals, hence pushing them to go beyond.

Since the tech preferences of customers are highly dynamic;the company should attentively track the major trends of users and incorporate them into the product. The integration of device with social media and internet, is the widely desired feature that the company is advised to implement.

Improve sales performance

The company could address the issue of declining profit returns by expanding its business operations where the name of Fitbit is still unpopular. The gradual introduction of the product in the international market would baccalaureate scale demand for Fitbit. Thus by executing the position defense strategy; the company would be able to maintain its superior status over the customers’ minds and to protect its position of brand from its competitors.

Factors in the marketing environment not mentioned in this case could affect Fitbit

The factors in the marketing environment which are not mentioned in the case and could affect the sustainability and long-term growth of the company, are as follows:.................

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Fitbit: Riding the Fitness Wave to Glory Harvard Case Solution & Analysis