Fitbit: The Business about Wrist

Description

On August 3, 2015, Fitbit, Inc.’s (Fitbit) stock price hit an all-time high of $50.99. A few months earlier, when Fitbit went public on June 18, it had opened on its first day of trading at a price of $30.40 — 52 per cent higher than its initial public offering price. As what appeared to be the most successful initial public offering of the year, Fitbit attracted significant attention and inevitably drew controversy as well. Some investors saw great potential and a promising future for Fitbit. Others were less positive, calling it a fad without any real opportunity for future development. In the face of growing competition from rivals with more extensive consumer bases, Fitbit wanted to ensure that it achieved sustainable growth. What was Fitbit, and what could it become? The question concerned not only potential investors but also the chief executive officer of the high-tech company.

Learning Objective

·To understand Fitbit’s business focus and product/service offerings. ·To understand the background of the wearable devices market. ·To explore the strategic advantages and disadvantages of Fitbit and its competitors. ·To generate a preliminary prediction of the market. ·To identify future business opportunities for Fitbit.

Keywords

Competitive advantage Market Strategy New product positioning