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Fitbit CaseAnalysis

Fitbit started as a product company but later tried to become a platform company by acquiring companies like Twine Health. However, its primary business still remains product sales. Its acquisition by Google could help arrest its declining market share by leveraging Google's resources and ecosystem. It provides Google access to Fitbit's health data and hardware to compete with other smartwatch makers. For Fitbit to stay successful, it should focus on developing affordable smartwatches, integrating Google services, and monetizing its platform through subscriptions and personalized plans while ensuring user privacy.

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CHIRAG NARULA
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360 views

Fitbit CaseAnalysis

Fitbit started as a product company but later tried to become a platform company by acquiring companies like Twine Health. However, its primary business still remains product sales. Its acquisition by Google could help arrest its declining market share by leveraging Google's resources and ecosystem. It provides Google access to Fitbit's health data and hardware to compete with other smartwatch makers. For Fitbit to stay successful, it should focus on developing affordable smartwatches, integrating Google services, and monetizing its platform through subscriptions and personalized plans while ensuring user privacy.

Uploaded by

CHIRAG NARULA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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fitbit

GROUP - VIII
Fitbit, Inc : Has the company Outgrown Its Strategy
Is Fitbit a product or platform company?

• Fitbit started as a product based company with fitness trackers being their core products, enjoying the first
mover advantage and remaining the market leader in fitness tracker segment till 2015.
• Xiaomi came up with similar lower priced devices and Apple with a more functional smartwatch. Both
grabbed a major market share in wearable fitness devices.
• Fitbit was challenged and felt the need to reinvent itself and moved towards making itself more of a platform
company
• Fitbit acquired Twine Health in a bid to focus on becoming a platform and launched Fitbit Care through its
Fitbit Plus App. A health platform which allows users to connect with health professionals who coach users on
staying well based on the user available via the platform and also sold its watches through the application
• It is a bid to create a healthcare ecosystem and there is a growing focus on platform, however, the primary
business still remains product sales.
Fitbit, Inc : Has the company Outgrown Its Strategy
What is the impact of acquisition by google?

On Fitbit
• Arrest the slide in market share and product sales
• Create an ecosystem with android devices like Apple
• Leverage Google’s global presence and resources for increased R&D spending and also making its
health services more accessible
• Can help in accelerating the product innovation - utilise Google’s technological and developers
expertise to improve the platform services and improve on the customer experience
• Fitbit's current customers have also expressed concern because of Google's attitude toward privacy,
hence it might drive the users away
• Being pessimistic - Google will launch its Google/Pixel Watch and shut down Fitbit. Google's track record
with acquisitions over the past 10 years has been awful - especially when significant capital acquisitions
of $500 million or more are done because of the company's inability to successfully integrate acquired
businesses into its culture.
Fitbit, Inc : Has the company Outgrown Its Strategy
What is the impact of acquisition by google?

On Google
• Good for Google – as it gets all of Fitbit’s intellectual property and user data spanning more than a
decade. Google's desire to own data, its interest in healthcare and the sheer volume of tracking
information on Fitbit's servers more than justifies the purchase.
• Access to smartwatch hardware allowing it to compete directly and effectively with the likes of Apple,
Samsung, Huawei & Xiaomi and hence control both hardware and the software of the product
• Leverage Fitbits partnership with healthcare industry for product and service development
• Launch Pixel watch integrated smoothly with Pixel devices providing a cohesive experience and creating
an ecosystem of their own
• Provides Google access to health data of millions of Fitbit users (Debatable how the data will be used by
Google) - Data can be used to provide a more personalized user experience by identifying the trends
Fitbit, Inc : Has the company Outgrown Its Strategy
What strategy should Fitbit adopt to stay afloat?

• Limited app store has been one of the major disadvantages for FitBit, with the integration of Google Apps, it
can have a robust app ecosystem
• Integrating Google Assistant (Ok-Google) into its wearables
• Ensuring Google Take steps to ensure that partnership with Google does not allow selling user data to third
parties for ads
• Focus on developing value for money smartwatches like Fitbit Versa
• Increasing Focus in enterprise only device and increasing the user base
• Focus on making health/fitness devices for older population
• Increase focus on health and wellness data tracking to provide detailed medical data to customers by
integrating with medical devices and healthcare customer offerings and provide a more personalized
experience to the user
• Monetizing the platform through premium subscriptions and personalized fitness plans

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