CASE ANALYSIS

Submitted to:
Rafiuddin Ahmed,
Associate Professor,
Department of Marketing,
University of Dhaka.

Submitted by:
Group-3

Members:
Tasnia Hoque Esha (1205)
Sazzad Hossain (1207)
Rifah Tashfiha Faria (1213)
Swarna Islam (1214)
Sifat Sikder (1221)
BSSE 12th Batch,
Institute of Information Technology,
University of Dhaka.

Date: 28th June, 2022 A.D.

Introduction:
Fitbit is a company which was founded with a vision to help people stay fit and healthy. Initially, they were doing
great. But after a few days, some issues started to arise. Though they have spread their business over a lot of
countries, their business is not facing any profit for a long time.

Reasons behind their loss:

● As a production-based company, their main priority was to attract consumers at the first glance focusing on the
lucrative design of their products. But they failed in this case.
● Not only does their products’ design fail to attract more customers but also creates health issues for their
customers (like allergies) because of using Nickel in the watch.
● Another important issue behind their downfall was the security of their consumers' information. Because a
third-party group was involved in this information leak of their customers.
● The most impactful point was the pricing of their products compared to that current market.
● Lastly, they couldn’t hold up the competition alongside other companies (Garmin, Apple, Xiaomi etc.) for the
same products.

Necessary steps to overcome the problems:

● Provide affordable products with simple features with the vision to increase profit margin. This way they
can widen their market segment by targeting people with middle income.
● Many people using Fitbit products complained about an allergic reaction that was caused by Nickel. Proper
research should be conducted to overcome this issue. Design flaw should be removed.
● User privacy should be provided. Blockchain can be a solution to ensure private security. Others cannot
easily temper with data as data is not centralized.
● To compete with the opponents, they should improve features to attract more consumers. They can also
design products that could be used by doctors to track their patient’s health.
● To decrease costs, they can choose social media for advertising. This way they can reach more people.
Positive feedback provided by customers on social media or user-generated content can be a great way to
promote their products. Focusing more on digital marketing could be a turning point. Selling via websites is
a popular medium.
● They can also increase product variety. It needs to be more than one product company. Since the activity
tracking feature is being used by many other companies, to stay in the market products with more detailed
clinical information and features is necessary.
Conclusion:
Fitbit has a great chance to compete and lead the market place again if and only if they solve their existing issues
and become more flexible.