Essay About Big Market Share And Fitbit’S Market Share

Busi 2208 Marketing Case Analysis: Fitbit
Executive SummaryFitbit, as a company that started with clip-on activity trackers that was used to record the number of steps and calories consumption, is currently occupying big market share in wearable devices market. Fitbit offers many devices that differ from functions and designs. The strength and reason of success are based on devices’ thoughtful functions. The functions show care, openness, compatibility, advance, commitment and convenience.  In recent years, many companies such as Apple, Samsung, Withings, Garmin and Jawbone emerged in the market to join the competition, which considerably affected Fitbit’s market share. Meanwhile, there is potential problem that Fitbit may realize, which is about the exact market position. In other words, Fitbit seems like is doing well in each aspect but it is not in the leading position of each aspect, and they do not know which market segment to focus on. There are two solutions for the problem. First, Fitbit could be design-oriented and function-oriented company, and just focus on two production lines. One line produces high-tech production with luxury design to complete with Apple and Samsung. Another line is function-oriented, so concentrating on producing high-tech product with simple design. The another solution is based on the first solution but add on more production line that produce the devices with simple function and design, which can gain market share from price sensible consumers. Furthermore, the second solution suggests that Fitbit should decline the investment on product with high class function and   design. Here the second solution is more recommended. High-tech market is taking out by Apple and Samsung, and their targets are the consumers with high income. Fitbit is not a watch company, so they should mainly focus on the development of the functions. Meanwhile, they can build an extra plant to compete in the high-tech market and attract the surplus. Therefore, they can gain market share from consumers of price sensible and function sensible, also from high-end market.Problem statement:According to the case, Fitbit is working on each aspect to compete with each company. For example, Fitbit has products from low-tech to high-tech. As a tracking device, they also invest on three-party apps to provide healthcare to consumers. They do not clearly show their product direction in the market. Therefore, they should figure out the goal of the company at first, by increasing brand recognition and creating a stable marketing plan. Internal factorsMarketing Fitbit supplies a niche consumer experience where the feature of the product aimed to satisfy a specific market need. Although the direction of their product is unclear, the company’s unique business concept is poised to be a strong core competence. The company must use this strength by producing smartwatch as well and drive market share growth. Fitbit started to appear frequently in the mainstream news to present itself as a valuable company to connect with its target market. Fitbit suffers from an unclear defined target market; this is can be considered a weakness to the company. Fitbit should clarify which demographics it intends to keep track of in order to drive an effective marketing effort. Another important weakness disturb the operations of the company is the lack of concise promotional plan. Because the current promotional options considered by the company are very broad such as dealing with insurance companies and the reward points.