According to Motley Fool, 2015, Fitbit is undoubtedly the frontrunner in the wearable fitness tracker marketplace, with approximately 70% of the device market share and 85% of the market by dollar value as of Q1 2015. Fitbit declares that its principal strength is that its name has become synonymous with the connected fitness market; in its IPO prospectus, the corporation reported products were a gigantic 85% of the total dollar spent on activity trackers in the initial quarter of 2015, upward from 70% in 2014 and 59% in 2013.
Motley Fool, 2015) Broad range of connected health and fitness devices. The diverse categories and expense assortments of Fitbit’s products is the corporation’s subsequent competitive advantage; although several businesses have compound dissimilarities of one rudimentary product, Fitbit has several designs of products, and alternatives within each collection, in addition to, multiple points of functionality and price, from fundamental step monitoring to sophisticated GPS, heart rate, and sleep monitoring. (Motley Fool, 2015) Advanced, purpose-built hardware and software technologies.
Fitbit is delivering the hardware devices as well as, the software platform which footprints the data the device collects and aids the consumer in the use of report in an effective technique. Together the hardware and software are concentrated on individual specialized health objective. (Motley Fool, 2015) Broad mobile compatibility and open API. Since Fitbit is easily the marketplace commanding device manufacturer, its devices work on various platforms, such as, Under Armour’s Record connected fitness app.
Furthermore, Fitbit’s open API makes it effortless for other groups to utilize the platform with their own service for still more connectivity and for impending Fitbit sales progression as those software users convert to Fitbit hardware users. (Motley Fool, 2015) Broad and differentiated go-to-market strategy. Contrasting numerous of their competitors, Fitbit is broadly obtainable not simply in sports attire and fitness retailers but likewise in many other trade stores.
Actually, Fitbit products can be located in over 45,000 merchandizing stores and in beyond 50 countries via stores, online sales, and corporate wellness partnerships. Motley Fool, 2015) Large and growing community and powerful network effects. The quantity of Fitbit users has increased from just above a million by the conclusion of 2012 to 19 million by the completion of Q1 2015. This momentum supports for sales, and assists in the development of more information for Fitbit to employ as it tracks its user base and determines which characteristics make the most sense for upcoming devices through supplementary comprehensive insights and analysis. (Motley Fool, 2015) Direct relationship and continuous communication with our users.
Fitbit strive to exploit the accumulation of data it collects, together with, relationship with its’ operators, to enhanced identification its users’ health and fitness objectives, and to subsequently convert those objectives into characteristics and content to assist users in reaching their objectives; such a sizable user foundation is much more effective than other smaller brands. (Motley Fool, 2015) Although there will undoubtedly be competition, the market appears to be increasing precipitously, analysts from Juniper Research forecast the fitness tracker marketplace will triple in the following three years.
Consequently, even though Fitbit may lose a few of its market share to these competitors, it will make substantial profits throughout the subsequent years. From that standpoint, so long as Fitbit maintain these competitive strengths, it will still have adequate opportunity to operate. (Motley Fool, 2015) 6. Identify the target clientele of the competing products. According to PRWEB, 2015, fitness trackers, have a compelling presence in the wearables marketplace; have acquired a substantial mainstream following.
According to the report 36% of fitness tracker owners in the United States are 35-54 years old, 41% had median revenue of more than $100,000, and 54% are female and social group who is enthusiastic regarding innovative ideals; one-in-ten adults in the United State currently own a fitness tracker. (PRWEB, 2015) According to Blanquer, M. , 2014, Jawbone pursues individuals who desire to footprint their routine and bodies to learn to interpret the communications conveyed to them by their bodies.
There are additionally individuals who desire to lose weight, follow their daily burn calories, in real-time. Furthermore, there are individuals who necessitate visible element and calculate daily stresses. Moreover, there are potential consumers in those seeking a preview of their sleep cycle because of insomnia. (Blanquer, M. , 2014) The population targeted are the young, comfortable with modern technologies and would benefit from technologies with enhanced well-being. Conclusively, they must possess a smartphone or a tablet (iOS or Android) and make regular use of it. Blanquer, M. , 2014)
Misfit Shine targets those fashion conscious individuals, seeking a fully functional and completely waterproof fitness tracker with an extended battery life. According to Digital Trends, 2014, the Runtastic Orbit is an eleventh-hour entry to the domain although it has the advantage of originating from a corporation which is already a large brand in the fitness market with its suite of apps, that have been downloaded greater than 85 million times. (Digital Trends, 2014)