Porter's Five Forces - Fitbit

Angela L.

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Porter's Five Forces - Fitbit

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Themes

Porter's 5 Forces, Fitbit, activity trackers, fitness industry, Apple, Xiaomi, Alphabet, Google, Garmin, Samsung, attractive prices, social media, supplier power, innovative technologies

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Abstract

Founded by James Parker and Eric Friedman in 2007, this American group produces activity trackers, connected watches and other products related to the health and fitness industry. James and Eric believe that, while their customers take health and fitness seriously, it does not have to be serious business. They believe that customers are more likely to reach their goals if they can empower and encourage them and still have fun along the way. Their focus has been to design and produce products that fit seamlessly into your daily life and inspire a healthier, more active and balanced lifestyle, wherever you may be.

Introduction
1. Presentation of Fitbit
2. Presentation of Porter's 5 forces
Porter's 5 forces for Fitbit
1. The challenge of competitive rivalry
2. The influence of supplier power
3. The impact of buyer power
4. The threat of substitution products or services
5. The threat of new market entrants
6. Synthesis of the Porters Forces for Fitbit

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Extract

[...] On their website, they have a section called Fitbit in the Wild. This section is dedicated to Celebrity sightings, showing pictures of people like Barrack Obama, Gwyneth Paltrow, Jamie Fox, to name just a few, sporting their Fitbit watches as well as celebrity social posts featuring their products. This type of marketing can go a long way in creating hype around the brand and encouraging customers to use the same products as their idols. The influence of supplier power There are numerous suppliers in the Technical & Scientific Instruments Industry, and they wield a fair amount of power over their clients. [...]

[...] Collaborations are one way that the company can set itself apart from the competition. By collaborating with healthcare organisations or individuals, they will be able to offer unique products to their customers. An example of how Fitbit has embraced this aspect is their recent partnership with Deepak Chopra to create an exclusive wellness collection. Users will have access to exclusive sessions designed by this world-renowned wellness Guru for mindfulness, sleep, mental wellness, stress and more. The outbreak of the global pandemic has massively shifted the behaviour and attitude related to the health and fitness of most consumers around the world. [...]

[...] Followed closely by Garmin, Xiamoi and Samsung. The connected watch market is highly competitive and companies vie for market share by offering innovative products at increasingly attractive prices. Innovation plays an important role in this very competitive market, as consumers are constantly looking for better functionality and reliability. Fitbit has struggled to keep up with Apple, while the Apple products are more expensive, they have proven to be more efficient in counting calories and steps and offer a wider variety of applications and strap options. [...]

[...] The cost of switching brands is also relatively low and, therefore, not much of a deterrent in this regard. The company needs to carefully assess its customers' needs and try to stay one step ahead of them by offering innovative products in order to retain their customers' loyalty. The threat of substitution products or services While the threat of substitutes products is very real in this market, Fitbit has positioned itself well as one of the products which can be used across various operating platforms and are compatible with different mobile devices, unlike its main competitor Apple. [...]

[...] To help keep your kids motivated, there are reminders to move, virtual badges and trophies which are awarded once you reach certain goals, and complete challenges with parent-approved family and friends. Presentation of Porter's 5 forces In 1979 Michael Porter looked at the 5 forces which commonly affect businesses and turned this into a strategic business analysis tool that can be applied to any business or even product in any industry or market around the world. This strategic analysis was designed to assess the five main forces which may affect a company in its macroeconomic environment. [...]

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