Fitbit Inc

An American business, Fitbit Inc.

Fitbit Inc. is based in San Francisco. Eric and James created it in the year 2007. They employ wireless technology, which offers a novel approach to fitness and wellness. They design wearable products, such as bracelets, that can track a person’s daily steps, calories burned, heart rate, amount of activity required, and amount of sleep received. When they created the smart wearable, the stock rose by 52% in the early going. Competitors like Apple Inc., Alphabet Inc., and others provide the same features, which causes Fitbit Inc. to perform poorly. According to Reuters Fitbit Inc. has reported a 40.8 percentage income loss on 3rd may 2017 as the company is struggling with the rapidly rise in competition from other stakeholders. The company posted a loss of $60 million or 27% per during the first Quarter of April 7017 of $11 million or 5 cents per share in the past year Revenue reduced to $298.9 from $505.4 million (Mcdermid, 2017).

Poor Performance and Investor Reluctance

Due to the poor performance, the investors are reluctant to invest in the company hence they prefer to go to other stakeholders who are performing well in the industry. To counter the competition, Fitbit Inc. intends to introduce a different product which rumors has it that they plan to produce a new smart watch that would boost the company’s revenue and hence reduction of competition. The aspect would expand both the company’s stock and income and also not scare away the investors (Farle, 2017).

Competitive Strategies

Fitbit should use these competitive strategies: they should look at the target market to see where there is need to fill a void and come up with the solution to fill it (Prahalad, 2004). They should always be customer centered by producing the wearable that the customers want and always stay on their toes to be the first to fulfill the customers’ needs. Fitbit Inc. should avoid competing for pricing with the competitors and make sure their services stand out from those provided by the other stakeholders in the industry.

References

Farley, Chris (2017) don’t bottom fish Fitbit Inc Stock after Earnings. United States: http//www.investorplace.com

Mcdermid, Brendan (2017). Fitbit Blazes Past Its Revenue Forecast United States: http//www.reuters.com

Prahalad, C.K and Venkat Ramaswamy. (2004) .The Future of Competition: Co-Creating Unique Value: Boston. With Customers Harvard Business Press,