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A mission statement for Fitbit reflects its major market-oriented goal: to sell high-quality, accessible wearables to users who take care of their health that will keep them up-to-date with the newest technological advancements. The statement incorporates the company’s product values, and motivations. The product is defined as a wearable fitness-tracking device. Fitbit was the first company to introduce such a fitness tracker, and despite the emergence of several similar products, it is still the leader in the market. The company’s values are focused on the endeavor to offer the most comfortable and accessible device to consumers.
Thus, Fitbit aims to provide the highest possible quality of its products while ensuring equal access to users from all over the world. Another set of values that Fitbit holds are creativity and innovation: the company is constantly working on its development to provide its clients with the most convenient options. Each new model is an improvement on the previous one, but there is also the possibility of upgrading older versions instead of replacing them.
Not only was Fitbit the first to propose a wearable fitness-tracking device but it also remains the first in terms of pricing and quality. The company’s mission is to sustain its good reputation by guaranteeing high-quality products that enhance people’s well-being. Fitbit introduced a remarkable change to the world’s technology industry in 2007, and it intends to support this position through innovation, dedication, and the care with which it treats each customer.
The Analysis of the Company’s Business Portfolio
The current business portfolio of Fitbit is represented by a variety of wristband devices helping users to track their exercise, activity, weight, and sleep as well as suggesting other useful functions. Their most recent product – a waterproof smartwatch named Ionic – was presented in 2017. Ionic measures heart rate, sleep, steps, and floors climbed. It has a customizable appearance and a GPS and is waterproof. This is the most progressive device in the company’s business portfolio and it has evolved greatly since its creation. The first product offered by Fitbit was a classic clip-on activity tracker that could record the number of calories burned and steps taken daily.
In 2013, the company produced its first wristband tracker, but it still did not have many functions. Compared to the first device, the only additional feature that the 2013 model had was the customizable appearance. Fitbit continued to improve, and the 2015 model of a wristband tracker already had such options as measuring heart rate and floors. It was water-resistant, and the battery charge lasted for up to five days.
In 2015 and 2016, the company presented its first smartwatches: Surge and Blaze. In addition to the functions offered by wristband trackers, these models featured GPS navigation. Blaze, which was produced in 2016, also offered a customizable appearance. Thus, Fitbit has evolved immensely since the creation of its first tracker. The company’s business portfolio is rich in products, and it continues working to provide users with the most up-to-date functions.
The Analysis of the Macroenvironment
Macroenvironmental factors that have motivated Fitbit’s plans for the future of the company may be analyzed with the help of PESTEL analysis:
- P (political): there are no trade restrictions for Fitbit’s products in the US or in other countries where it offers these products; political stability and tax policy allow Fitbit to arrange its work effectively and gain high profits;
- E (economic): Fitbit needs to take into consideration the type of economic systems in the countries where it wants to cooperate; other crucial issues include the rates of economic growth, interest, and inflation;
- S (social): for Fitbit, the shared values and beliefs of people are decisive factors in this domain; education, demographics, environmental consciousness, and social interactions are important issues, too; also, the skill level of the population is highly crucial for the company;
- T (technological): Fitbit is greatly affected by the technological advancements of its competitors; it is also necessary to take into consideration the level of technological diffusion; finally, Fitbit should analyze the speed at which new technology can disrupt the industry;
- E (environmental): the major environmental factor for Fitbit is the laws that regulate pollution; other significant issues are waste management regulations on the technology industry; the company’s attitude towards sustainability and renewable energy also play an important role;
- L (legal): the US anti-trust law in the industry of technology is something that Fitbit must keep in mind; other issues affecting the company’s effective development include laws about intellectual property, consumer and data protection, health and safety, discrimination, and employment.
The Analysis of the Microenvironment
Microenvironmental factors that have driven the company’s plans for the future are concentrated on customers, employees, competitors, investors, suppliers, and distributors, as well as the media. Customers are the most important element of the microenvironment. Their dedication and trust inspire Fitbit’s creativity and desire to enhance its devices. However, according to a survey, one-third of users ceased using their device after half a year of owning it. Thus, it is necessary to come up with ideas that will keep customers interested and active. The role of employees in the company’s success is also highly significant.
Fitbit needs to motivate its workers and create the best opportunities for them so that they want to remain with the company. The major competitors of Fitbit are Garmin, Samsung, Jawbone, Xiaomi, and Apple. Despite these options, users tend to choose Fitbit for its reputation and moderate pricing. Thus, even when Apple entered the market of fitness-tracking devices, Fitbit did not experience a significant sales reduction.
Other competitors do not pose a serious threat to Fitbit either because their products have a different emphasis or because they have not established such a rapport with their customer base. Investments compose another serious microenvironmental issue. So far, the company has not felt a lack of investors, especially since its revenues have been growing every year. However, with the decline in customers’ attention, Fitbit should create innovative solutions to keep investors interested. The company’s supply and distribution channels are well-developed. Fitbit’s representation in the media is positive due to its good image.