Fitbit: The Business about Wrist

Fitbit: The Business about Wrist Description

On August 3, 2015, Fitbit, Inc.'s (Fitbit) stock price hit an all-time high of $50.99. A few months earlier, when Fitbit went public on June 18, it had opened on its first day of trading at a price of $30.40 - 52 per cent higher than its initial public offering price. As what appeared to be the most successful initial public offering of the year, Fitbit attracted significant attention and inevitably drew controversy as well. Some investors saw great potential and a promising future for Fitbit. Others were less positive, calling it a fad without any real opportunity for future development. In the face of growing competition from rivals with more extensive consumer bases, Fitbit wanted to ensure that it achieved sustainable growth. What was Fitbit, and what could it become? The question concerned not only potential investors but also the chief executive officer of the high-tech company.

Case Description Fitbit: The Business about Wrist

Strategic Managment Tools Used in Case Study Analysis of Fitbit: The Business about Wrist

STEP 1. Problem Identification in Fitbit: The Business about Wrist case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Fitbit: The Business about Wrist case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Fitbit: The Business about Wrist case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Fitbit: The Business about Wrist case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Fitbit: The Business about Wrist case study

STEP 6. Recommendations Fitbit: The Business about Wrist case study

STEP 7. Basis of Recommendations for Fitbit: The Business about Wrist case study

Case Analysis of Fitbit: The Business about Wrist

Fitbit: The Business about Wrist is a Harvard Business (HBR) Case Study on Sales & Marketing , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Fitbit: The Business about Wrist is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Fitbit: The Business about Wrist case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Fitbit: The Business about Wrist will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Fitbit: The Business about Wrist case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Sales & Marketing, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Fitbit: The Business about Wrist, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Fitbit: The Business about Wrist case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Sales & Marketing Solutions

In the Texas Business School, Fitbit: The Business about Wrist case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Fitbit: The Business about Wrist

Step 1 – Problem Identification of Fitbit: The Business about Wrist - Harvard Business School Case Study

The first step to solve HBR Fitbit: The Business about Wrist case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Fitbit 30.40 is facing right now. Even though the problem statement is essentially – “Sales & Marketing” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Fitbit 30.40, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Fitbit: The Business about Wrist.

The external environment analysis of Fitbit: The Business about Wrist will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Fitbit: The Business about Wrist case study. PESTEL analysis of " Fitbit: The Business about Wrist" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Fitbit: The Business about Wrist macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Fitbit: The Business about Wrist

To do comprehensive PESTEL analysis of case study – Fitbit: The Business about Wrist , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Fitbit: The Business about Wrist

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Fitbit: The Business about Wrist

Government policies have significant impact on the business environment of any country. The firm in “ Fitbit: The Business about Wrist ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Fitbit 30.40 is operating, firms are required to store customer data within the premises of the country. Fitbit 30.40 needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Fitbit: The Business about Wrist has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Fitbit 30.40 in case study Fitbit: The Business about Wrist" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Fitbit 30.40 in case study “ Fitbit: The Business about Wrist ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Fitbit 30.40 in case study “ Fitbit: The Business about Wrist ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Fitbit: The Business about Wrist

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Fitbit: The Business about Wrist ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Fitbit 30.40 can compete against other competitors.

Government Scheme & Subsidies Impact on Fitbit: The Business about Wrist

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Fitbit: The Business about Wrist case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Fitbit: The Business about Wrist

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Fitbit 30.40 needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Fitbit: The Business about Wrist

Social Factors that Impact Fitbit: The Business about Wrist

Technological Factors that Impact Fitbit: The Business about Wrist

Environmental Factors that Impact Fitbit: The Business about Wrist

Legal Factors that Impact Fitbit: The Business about Wrist

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Fitbit: The Business about Wrist case study. PESTEL analysis of " Fitbit: The Business about Wrist" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Fitbit: The Business about Wrist case study solution