PORTER’s FIVE FORCES

Competitive Rivalry: high

As This includes heart rate, heart rate variability, blood oxygen levels, respiration rate, and stress.
The Garmin Venu 2 Plus’s appeal is onboard music storage which we can not find in fitbit versa 2.

The fitbit versa 2 lack in upgradation of its OS, where apple has the upgradation system with it.
Other than this apple has temperature sensors which hive deep insight for those who menstruate.

Supply power: HIGH

Supply power of Fitbit is high, as it got multiple suppliers for their manufacturing product. So, the
risk factor or threat factor for their supply is low. As Fitbit’s most of the manufacturing suppliers are
from China, even there they have more than 1 supplier for a particular part

If we go for the straps or bands of the fitbit smart watches, their suppliers are:
Shenzen Gaiying Industry, Union Cellular Co. ltd.

If we have a look on their screen, their suppliers are:

Dongguan Aiyansheng Electronic Technology Co ltd, Shenzen Haresan Electronics Co. ltd

reference:
https://aiyansheng.manufacturer.globalsources.com/homepage_6008858354049.htm

Buyer power: Low

The reason for the buyer power is; Fitbit has a direct competition with Apple, Huwie, Xiomi,
Garmin. These companies are better than Fitbit in many aspects such as
Apple, Garmin and Samsung have better technology and better things to offer to buyers at
same price. Xiomi and Huwie are b etter because they almost same features by their
product but at very low rate.
The major thing is Fitbit do not have the customer loyalty as Apple.
Threat of New Entry (New Entrant): Moderate

According to the current market scenario, Fitbit is not facing any threat from new entrant
because the new products do not have that attraction of the audience towards
them.
But if these new companies come up with upgraded products with better understanding of
the costumers and create a market value, they can easily be threat to Fitbit.

New Entrant competition are:

Apex Athlete series which cost £149.99, it has a lot of features but it does not have the
shining face in the market but they are working on their promotion very well as they
collaborated with Harry Kane to promote their product.
Colmi P8 and Suunto Smart belt are the products which are new in the fitness bands market
but they only have limited features till date. They cost around £38- £70 only. They are
budget friendly but not feature friendly if we compare it with Fitbit Versa 2.

Threat of Substitution: HIGH

Due to the high competition in the fit band market, Fitbit has a high threat of substitution.
As it has direct competition with the renowned companies like Apple, Garmin, Samsung,
Xiomi.
Following is the critical analysis of Versa 3
1) Versa 3 uses Pulse technology for measuring heartbeat. Over 50 patents have been
awarded for this. But several lawsuits were filed against them as it was observed to be
producing inaccurate data. This device tends to underestimate HR when elevated beyond
the norm and overestimate it when attenuated below the norm
2) Fitbit versa 3 unlike its competitors does not have safety measures such as the local
emergency service which is a thing to worry in the longer run.
3) Many personalised features like Wellness report, workouts videos and audio are
available only for premium members which are easily available for free on competitor
devices thus questioning its brand loyalty.
4) The battery life of versa 3 which can last for 6+ days is commendable.
5) Versa 3 partnerships with companies like BP for introducing corporate wellness
programs shows tremendous potential for business proliferation.
RECOMMENDATIONS:

1) We believe that Fitbit could make their portfolio stronger if they decide to have their
own physical outlets as a way for their distribution. This will allow customers to have the
experience of Versa 3 before purchase decision.
2) Irregular heart rythym notifications which demonstrates potential conditions of
Atrial fibrillation is available only in selected countries. Which we believe should be
available in all countries. India for instance has high rate of occurrence of cardiovascular
diseases but this particular feature is not available in India.
5) a brand like Apple associates itself with suppliers who are involved in usage of sheer
renewable energy for Apple production thus ensuring complete sustainability. This in
particular is not in case for suppliers of versa 3 which we believe should be adopted as a
step towards sustainability.
6) We believe that fitbit should partner with sports personalities and sponsor sporting
events as a part of their promotion to increase awareness about Versa 3.
At the end as a team we feel that Quantity premium pricing can be adopted through which
versa 3 can be bought in bulk for ex: a family purchasing multiple watches at discounted
prices for its members.