Get instant access to this case solution for only $15

Fitbit The Business About Wrist Case Solution

Solution Id Length Case Author Case Publisher
1820 989 Words (5 Pages) Xiaoke Xu, Xin Shane Wang Ivey Publishing : W16264
This solution includes: A Word File A Word File

The case is about Fitbit, which is a company that makes fitness tracking devices that fall under the wearables segment. The company was doing well until Apple launched its smart watches. Apple now stands 2nd in terms of market share. Fitbit has spent too much time and money on technical innovations. However, the problem areas are customer engagement and rising competition. Fitbit is losing customer engagement, as 50% of its users became inactive after purchasing the devices. Further, competitors like Apple, Samsung, Xiaomi, etc. have sprung up, posing a threat to Fitbit, who is currently the lead brand in the market.

Following questions are answered in this case study solution

  1. Introduction

  2. Value Proposition and Competitive advantage 

  3. Segmentation, Targeting, and Positioning

  4. Opportunities to Enhance Customer Engagement and Secure Lead Position 

  5. Conclusion 

Case Analysis for Fitbit The Business About Wrist

2. Value Proposition and Competitive advantage 

A value proposition is an innovative feature or quality that makes a product attractive (Rintamäki, et al., 2007). Fitbit’s value proposition is fitness tracking devices and health applications. While other devices focus on checking phone notifications and other features too, Fitbit’s value proposition is fitness and health, and it targets the same kind of consumers. The Company’s competitive advantage is its technology in fitness tracking devices. Fitbit has advanced and accurate technology of measuring steps, heart rate, blood pressure, floors climbed, and can detect sleep.

3. Segmentation, Targeting, and Positioning

STP is a strategy that segments the market, targets specific segments, and positions the product accordingly (Dibb & Simkin, 1991). Fitbit’s value proposition is health and fitness, and its competitive advantage is technology and a brand name in fitness devices. Fitbit now needs to segment the market. Possible two segmentation can be based on health-consciousness, brand-consciousness, etc. A major determinant of purchase in the wearable devices market is price. Another segment could be people who choose devices solely by price. After segmenting, Fitbit can select the target markets it aims to target. Potential markets could be health-conscious, brand conscious, and price-conscious. Fitbit can then design products suited to the relevant market's needs, and then position them accordingly. For example, high-tech fitness trackers and other devices could be sold to consumers who purchase for health-related purposes only. For brand-conscious users, a good sell would be a pricey smart watch that has an elite and fashionable design. For users who purchase due to lower price, a smaller version of fitness bands, or “Lite” version could be introduced to capture that market.

4. Opportunities to Enhance Customer Engagement and Secure Lead Position 

The above strategy would ensure the company maintains its lead position in the market. LITE versions of Fitbit’s products would have a lower price that would compete with Xiaomi, as the company offers affordable smart bands. The pricey and fashionable smart watch would compete with Apple in capturing brand-conscious users. The high-tech health and fitness tracking devices will be the value proposition of Fitbit. Fitbit could focus on its value proposition while also adopting certain features that retain customer engagement. Linking the devices to phones, adding the option of music, etc. are the features already adopted. Fitbit could also adopt games and other features. Offering variants of existing version helps target different markets (Camilleri, 2018).

To further increase customer engagement and to retain customers, Fitbit can introduce a feature similar to Siri, who tracks fitness and advises against it too. Taking the focus of fitness technology and emphasizing on other features like Siri would help Fitbit retain customers and maintain a lead position in the market. However, while doing this, Fitbit will have to make sure that it does not deviate from its value proposition, which would otherwise result in a loss of customers. A business is known due to its value proposition, and deviating from it could change the dynamics of a firm (Emerson, 2003).

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price


Save $10 on your purchase


Amount to Pay


Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price


Get More Out of This

Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.

Essay Writing Service
whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon