Fitbit is a global leader in the wearables market, with having sold more than 43 million wearables and having more than 200 employees. In this blog, we’re going to take a look at what Fitbit’s business model is, how it is successful so far and how they are positioning themselves for the future.
It seems like everyone has a fitbit these days. While these wearables have different functionalities, they all have the same goal – to help us track our daily fitness and health. Fitbit produces wearable technology devices that measure a person’s activity levels, and sleep patterns.
It has since grown to be a very popular device, having been worn by anyone from professional athletes to the general public.
When we think of technology, we usually don’t think of it as being a fitness accessory. However, we do know that keeping fit can be extremely difficult.
The founders of Fitbit saw the need for a tracking device that could help you keep fit. Fitbit is a wearable fitness tracker that was first developed in 2007 by James Park and Eric Friedman, who were classmates at the University of Maryland, College Park.
Fitbit’s Business Model Canvas
Wearable technology Trends
Wearable Technology is on its way to becoming a bigger trend than anyone can imagine. It is a new way of living for people by making them feel more connected and organized. The market is already crowded with products like the Apple Watch, Pebble and many more. Google, Apple, Samsung, and Microsoft are working on their own products. Google Glass is an example of what will be the next big thing in the wearable technology industry. Google Glass is a wearable computer on your face. It was announced in 2012, but it was not picked up well because of its design. The company has tried to make it more presentable with a newer model.
It has become an increasingly popular concept with many big companies making their own versions of wearable technologies. The rise of wearable tech is due to the increase in social media, fitness trackers, and consumer cameras.
Wearable technology has now become a valuable commodity.
Big companies realized that wearable technology is the next big thing and have been trying to make their own models of this technology.
Fitbit’s Business Model
Fitbit has positioned itself as a global leader in the wearables market, with having sold more than 43 million wearables and having more than 200 employees.
Fitbit developed a wrist-worn activity monitor to track daily activity, such as steps walked, calories burned, and distance traveled. The monitor tracks your activity both during the day and during exercise. This information is uploaded to the cloud where it can be accessed via the Fitbit dashboard, a free mobile app, and computer desktop application.
The company also offers a Software Development Kit (SDK) for developers to create applications for Fitbit’s devices, and the company also has a suite of premium features that can be purchased for the Fitbit dashboard or the Fitbit Ultra.
Fitbit’s business model is based on three revenue streams: retail, online, and corporate wellness.
- Retail : Fitbit sells its products in its own stores and on various online websites. The company also outsources sales through third-party retailers like Amazon (AMZN).
- Online : The company sells its products directly to consumers through its website.
- Corporate Wellness : Fitbit sells its products to businesses through its website to use for corporate wellness programs.
Why did google acquire Fitbit?
Google acquiring Fitbit can be seen as a counter to Apple’s recent purchase of the data-tracking app, Motion Stills. The two tech giants have been trying improving their mobile applications so they fit in better with the other.
Google has been trying to put all its energy into developing self-taught artificial intelligence
Acquiring FitBit will allow Google to collect data about the fitness habits of millions of people around the world. Not only can it use the data to make the AI smarter, the acquisition may also help Google develop hardware tools that will be used to collect physical data. Even when not at the top of the industry, Google is still part of the industry and the acquisition will strengthen its position in the field of wearable technology.
Who are Fitbit’s competitors?
There are many competitors of Fitbit. They are Garmin, Polar, Jawbone, Apple, MI, Samsung and Nike.
Who is Fitbit’s ideal customer?
Fitbit is a wearable technology, which means that fitness enthusiasts are more likely to be interested in this company. However, Fitbit promotes itself as an all around health tracker. This means that the company is interested in people that don’t work out at all, but still want to be healthy.
The most important factors to consider when targeting a fitness tracker audience are gender/age/location, income and the level of fitness. As far as income is concerned, Fitbit’s target customers are generally from the middle-class family. They are college students/professionals, and the general public. It is reasonable to assume that Fitbit’s ideal customers could be anyone who is interested in getting healthier and physically active. For example, retired people or those who are looking for a way to stay fit. The potential market is unlimited.