Fitbit Business Analysis

Words: 1533
Pages: 7

Introduction
Business overview and vision
Fitbit is an e-commerce business that focuses on distributing wearable health devices. The organisation aims to “inspire you to live a healthier, more active life” (fitbit.com, 2015). Their sole aim is designing devices that are sleek, attractive and sports focused. They have successfully managed to incorporate “wireless technologies” (fitbit.com, 2015) into their devices so monitoring of a person’s body is simple, effective and informative.

Fitbit devices are able to link to mobile devices and computers through wireless technology. This enables users’ health statics recorded by the devices to be presented in an effective and understandable manner that anyone should be able to understand. This has
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However the devices don’t stop there, the software on the devices is intelligent and has a virtual trainer built into the device to remind the user of the device to be active if they have been inactive for a period of time.

Models and strategies currently in being used by Fitbit
Fitbit was the first business in the wearable fitness tracking industry. Thus they have the highest percentage of the market and the most evolved product range. However this success is not only linked to them being the first in the field. Fitbit from day one has cleverly made use of a web-based business-to-consumer model. This has allowed them to keep their overheads down and allowing them to focus on their core business function.

Fitbit being a start-up company has had to raise capital to operate and survive. Although they are a new business they have only had two fund raisers and are currently in the process of an initial public offering to raise further funds for
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As Fitbit only has an online presence, they have strategically allowed companies to apply to become affiliates of theirs. In return the affiliates selling and marketing their products get a 12% commissions on all the products they on sell. This has cleverly tied in with Fitbit’s aim to keep capital expenditure down while receiving as much profit and exposure for their products.

Fitbits second source of revenue generation is direct selling. They facilitate this through their website. Consumers are able to directly access their product range online, see the associated prices, place an order and have the product delivered to them directly.
Although Fitbits direct selling is very effective and profitable, they have limitations for delivery. This has resulted in their direct selling option only being able to work in the United State of America.

To overcome their direct selling limitations Fitbit has made use of retailers. This has allowed them to sell their product globally and once again with them having to invest limited amounts of