- 1 Fitbit SWOT Analysis 2022
- 2 General Overview Of Fitbit
- 3 Introduction to Fitbit
- 4 The SWOT Analysis Of Fitbit
- 5 Strengths In The SWOT Analysis Of Fitbit
- 6 Weaknesses In The SWOT Analysis Of Fitbit
- 7 Opportunities In The SWOT Analysis Of Fitbit
- 8 Threats In The SWOT Analysis Of Fitbit
- 9 Benefits and limitations of SWOT analysis Hermes Paris
- 10 SWOT Analysis Weighted By The Weight
- 11 Recommendation
Fitbit SWOT Analysis 2022
Fitbit created the wearable health tracker market back in 2007 and has since grown into the market leader in its field.
With fierce competition and a constantly changing environment that is characterized by a myriad of technology-based sectors, maintaining market share is not a simple job.
Below, we will discuss the Strengths as well as the weaknesses, opportunities, and threats that the forward-thinking company is facing.
General Overview Of Fitbit
|Industry||Consumer electronics and fitness company|
|Founded||2007, March 26, Delaware, United States|
|Headquarters||San Francisco, California, United States|
|Founders||James Park, Eric Friedman|
|Annual Revenue||The U.S. $ 1.42 billion (2019)|
Introduction to Fitbit
To conduct the fitness tracker’s SWOT review it is essential to be aware of its past and its plans for the future.
The American fitness and consumer electronics company produces products such as activity trackers, smartwatches, and wearables with wireless connectivity that help monitor heart rate, steps taken as well as the quality of sleep and the number of steps taken and more.
The parent organization for Fitbit was called Healthy Metrics Research, Inc. The devices could boost fitness, however, it is unclear if they will enhance the health of people.
Fitbit is fifth in the biggest wearable company, as of the year 2019. It is growing at 14.8 percent. It has more than 28 million users and has sold more than 100 million smartphones.
The development timeline for Fitbit
|2007||The foundation stones were laid by James Park and Eric Friedman.|
|2015||The company first began trading using its ‘F.I.T.’ symbol.|
|2016||The company’s stock plummeted by more than 50%.|
|2017||Fitbit is partnered with Adidas.|
|2018||The revenues of the company have exceeded US$1 billion.|
|2019||Adidas brand Fitbit iconic was launched. Blue Cross Blue Shield Association was partnered with Fitbit.|
The SWOT Analysis Of Fitbit
The SWOT analysis performed by Fitbit will reveal strategies that help the business to improve its position and boost revenues.
It can identify the impact of competition and the weaknesses in relation to the organizational culture and structure.
The business can enhance its chances by taking into consideration opportunities. At the same time, it needs to develop strategies for diversification of business to improve market stability and build a name.
Strengths In The SWOT Analysis Of Fitbit
❤️ Fitbit retains its strong position in the market, despite its strong competitors. Fitbit is the pioneer of the wearable fitness device, and its first-mover advantage, allows it to sustain a stable market share. Since its launch, Fitbit has maintained roughly 3 percent market share. Fitbit established its own market and the name is associated with wearable fitness and health technology, which has created an incredibly prominent brand image that persists even today. The amount of wearable devices used by users is expected to grow from $51.55 billion up to $62.69 billion. (Statista)
❤️ The Fitbit ecosystem Fitbit provides has been extremely well-liked by its customers and has enjoyed great popularity and success. Fitbit lets its users connect to various platforms and devices, which range from apps for tracking sports and health insurers looking to reward their customers for their healthy lifestyles. This has led to significant growth and increased adoption of Fitbit’s ecosystem. This allows for increased market participation and potential revenue. Fitbit is the second largest fitness and health app available on the Google Play Store worldwide with revenues of $1.439 million. (Statista)
❤️ With Fitbit’s continual monitoring of the health of its users and its data access is unrivaled. Due to the size of Fitbit’s user database, as well as the characteristics of the device worn by the user, Fitbit has managed to accumulate a vast amount of information about the people who wear its devices. This information can be utilized in many ways including risk analysis, to preventative measures against diseases. The data is proven to be extremely valuable to many industries, allowing companies to understand their markets and the market’s habits. Fitbit has attracted more than 30 billion customers. (Statista)
❤️ The direct connection between Fitbit and its users through its direct distribution provides the company with a wealth of information about its market. Fitbit has a close relationship with people who purchase its products. It also distributes products directly to customers. This gives the company the advantage of keeping its fingers on the market. Fitbit has both direct and retail shipping to serve its customers. Fitbit has attracted more than 500,000 customers to Fitbit Premium. (Fitbit)
❤️ Google owns Fitbit and is bringing the strength that comes from Google to the Fitbit brand. While there are some concerns about privacy concerns, due to Fitbit controlling vast data sets that contain crucial data on the health of the population, Fitbit benefits from being controlled by Google. Google’s technology ecosystem provides an effective barrier to competitors’ entry into the fitness tracker/smartwatch industry, Google offers Fitbit a new edge thanks to its capabilities in research and development along with budgets and data. Google’s acquisition of Fitbit was valued at $2.1 billion. (The Verge)
❤️ Fitbit offers a platform on which for users to compete with a group of friends and colleagues. With individualized statistics and performance analysis and performance analysis, the Fitbit platform offers the perfect environment for healthy competition between colleagues and for measuring performance against other competitors. Because the metrics like the heart rate and speed and recovery time are defined and recorded with respect to each of your activities as well as uploaded onto a standard platform, it’s simple to compare your results with your peers. New Yorkers take the longest steps of any state in the country, taking an average of 7734 steps in winter, and 807 steps in the summer. (Verywell Fit)
❤️ There are Fitbit-specific apps available for other activities that are not fitness-related. Although the primary purpose of the Fitbit device is the purpose of tracking your health, there are numerous apps created by Fitbit and other third-party companies that utilize Fitbit sensors. For instance, Fitbit has a Find My Car application that determines the exact location of where you parked your car. Calorie Tracker has been the most popular fitness application in the Google Play Store with $1.44 million in revenue. (Statista)
❤️ There’s a wide selection of Fitbit products available in the market. If you’re seeking a device that can simply monitor your steps or how much sleep you get, Fitbit offers simple, basic devices that can be used for basic metrics. If you’re looking for more advanced features, Fitbit’s devices can provide full vital data, including heart rate levels, oxygen saturation levels sleep states, and ranges, along with measurements based on stress and temperature. Fitbit discovered the Covid-19 virus in 2,000 people in an investigation of 187,000 people who wear fitness devices. (Wareable)
Weaknesses In The SWOT Analysis Of Fitbit
❤️ In slow progress towards an intelligent ecosystem, Fitbit is struggling with a narrow audience. Fitbit has been a bit slow in transforming its products to go from fitness tracker/activity device to a full-fledged smartwatch permitting competitors to expand their market share. The competitors have built their own ecosystems that offer functionalities that cross over, such as the Apple wearable’s integration with various Apple products. Fitbit has tried to break into the market for smartwatches but has been only marginally successful. Fitbit’s sales soared during 2017 and reached 25.4 million sold, and then fell to 16 million sales in the year 2019. (Statista)
❤️ A lower cost of competition for Fitbit can mean that market share becomes difficult to regain. The market for fitness trackers and wearables has seen a huge increase in competition that is cheaper. Companies such as Huawei, Xiaomi, and to a small degree, Samsung, have products that have similar functions with lower costs. Fitbit’s market share has fallen from 3.8 percent to 2.6 percent of all units sold globally, whereas smaller brands like Huawei as well as boAT have seen their market share increase during the same time. (GSMArena)
❤️ Handset manufacturers sell competing products that are more functional. Wearable devices designed to be connected to their main devices – smartphones – offer similar features as those of Fitbit as well as the standard functions of a smart wearable device. Fitbit could consider creating a smartphone that is fitness-focused however, it would pose many challenges and is unlikely. Apple holds 55 percent of the market for smartwatches and has 7.6 million units shipped around the world. (Statista)
❤️ Trackers that are solely for fitness can be viewed as a novelty, with they have a limited value for the future. devices that are not able to perform beyond fitness tracking are utilized for a shorter time and tend to be less likely to return customers. The devices that have the ability to evolve into smart devices with enhanced capabilities and connectivity are more popular in the market and have more customers upgrading when new models are made available. A third of users quit tracking their health in the span of six months. (Digital initiative at Harvard Business School)
❤️ The Fitbit measurements have been criticized as being inaccurate. The Fitbit device is usually based on estimates instead of actual data. There has been criticism for the fact that using estimates doesn’t provide an exact picture of one’s health which is a valid justification to have the Fitbit device. A study has revealed that Fitbit devices may miscalculate heart rate by as much as 20 beats per min in typical training. (CNBC)
❤️ Fitbit utilizes the steps method as its primary measure to measure fitness. Although exercise is seen as essential to improve the health of an individual, Fitbit places too much weight on steps and fails to consider vital indicators like the body mass index, or calorie intake. Fitbit users complete over 46 trillion steps each year across the globe. (DMR)
Opportunities In The SWOT Analysis Of Fitbit
❤️ Fitbit has gained a hefty fascination with the health sector in the development of new ideas and synergies with its own brand. By combining Fitbit’s machine learning algorithms, a massive dataset, and sensors for target, Fitbit is able to provide the medical-grade screening equipment that is used to treat a variety of illnesses. This has enabled Fitbit to expand its market expansion from the fitness and health-related sectors to healthcare, which includes early warning capabilities as well as diagnostic functions. This new feature allows health professionals to monitor the health of patients from a distance. The Fitbit electrocardiogram (ECG) algorithm could detect 98.7 percent of cases of atrial fibrillation in the multi-site clinical study. (Fitbit)
❤️ Strategic partnerships provide Fitbit an edge in the medical and sporting industries. Partnerships have enabled Fitbit to study synergies within sectors where wearables had been previously absent. This provides insight that was previously unattainable and has benefited sectors like medicine and professional sports. Through a partnership with the Feinstein Institute of Medical Research, Early studies suggest that the vitals recorded by Fitbit can reveal the severity of certain diseases, like COVID-19 with 50 percent accuracy. (Nextgov)
❤️ Corporate and health insurance benefits instill Fitbit in the daily routine of households. Insurance companies for health are using the information that devices such as Fitbit can provide to help them improve their policies on insurance. This is a win-win-win situation, where people gain from the incentives, while insurance companies profit from people who live longer and pay higher premiums over their lives, and fewer claims for preventable illnesses. Health insurance policyholders who subscribe to incentive programs that use fitness trackers are able to live 13 to 21 years more than those who do not. (CBC Radio-Canada)
❤️ Sensors for sports and wearables are becoming more essential in professional sports to monitor and monitor. Professional sports teams are increasingly incorporating wearables into their performance monitoring, and incorporating sensors in different areas that are part of their game. For instance, Sportable partnered with Gilbert to develop the world’s first smart rugby ball that collects information about the trajectory, impacts forces, as well as other crucial data. Professional sports teams use microprocessors to process 1,000 data points every second. (Medium)
❤️ Fitbit is able to draw in third-party developers to create compatible apps that work with its products. The metrics that are produced and measured by Fitbit’s platform are generated and measured. Fitbit platforms are made available to third-party app developers who can create software that uses these metrics for a variety of outcomes. This could be used to create applications specifically designed for sports users to download to their devices. One example could include accelerometers that can be used to detect when surfers have been caught in a wave, and then analyze what the surfer does with every wave. The Fitness app segment is forecast to increase by 32%, bringing it to $3.5 billion. (Club Industry)
❤️ Fitbit can increase its wearable flexibility by adding additional sensors, and also with diverse sensors. A growing number of sensor and variable sensors are being made viable through wearable technology, particularly when combined with near-constant internet connectivity. This opens up a plethora of possibilities for companies such as Fitbit to create wearables specifically to help with biometric analysis. In the past, Fitbit released a blood oxygen saturation sensor that could detect illnesses like sleep apnea. 18 million are affected by Sleep Apnoea in the United States. (Mobi Health News)
Threats In The SWOT Analysis Of Fitbit
❤️ Fitness is booming and health technology around the world. The market for Fitbit is under constant competition from the latest technology capabilities, capabilities, and new players entering the market. Existing brands with customers are taking market share through selling devices that complement their existing products, and also rival Fitbit’s capabilities. Apple and Samsung are the top two brands in device sales worldwide in terms of 7.6 million units as well as 1.9 million devices sold, respectively. (Statista)
❤️ Established brands in the field of athletics are more reliable. Companies with proven sports-related products and services can offer greater credibility on the market. While Fitbit could counter this by forming partnerships, such as the one it has made with Adidas and Nike, it could be easier for companies to get into this market to compete against Fitbit because of their current customer base and market presence. A good example is Garmin’s GPS customer base which makes it the perfect market to target for wearable GPS fitness trackers that are GPS-enabled. Garmin sales have increased by 37%, which gives the company 8 percent of the market for smartwatches. (Wareable)
❤️ Privacy concerns associated with the Google merger raise doubts among consumers and antitrust regulators. Google’s acquisition of Fitbit raises privacy concerns with antitrust and policymakers. Fitbit keeps the health information of its large user base in its internal servers this signifies it is possible that Google can access this data. The question is how Google will do with this information. Google could make use of this data to tailor its advertising on the basis of health and fitness information. Google was ordered to pay $230 million for data breach-related activities. (Wired)
❤️ Technology is always evolving It is never the same, so Fitbit must keep up. Brands are focusing on their respective fields and are constantly developing their product offerings. Garmin is a major player in the area of wearable fitness and has always built upon and enhanced its products, providing the latest technology and creating products that are specifically designed for specific sports. The global investment in wearables has increased by $218 million from 2015 and reached $6.3 billion by 2020. (The SMS Group)
❤️ Continued operations under Google could be a challenge to Google’s corporate policies and environment. Additional questions have been brought up by the market regarding the ongoing development of this Fitbit label under Google’s control. There is speculation that Google could remove the most valuable features of Fitbit and integrate them into its own wearable devices. Additionally, there is the possibility that Google could take the Fitbit information accumulated over time and use it to create specific advertising. The price of Fitbit’s shares fell 18% following the announcement of its deal with Google. (Barrons) Fitbit has established an industry segment for wearable devices for health tracking. It has been able to keep its market share in a healthy manner and has been able to influence how the industry develops and make its name an industry-specific name. The fact that it is part of Google will assist Fitbit to keep its market share should Google decide to continue to support it.
Benefits and limitations of SWOT analysis Hermes Paris
A thorough SWOT analysis could help Hermes Paris capitalize on opportunities that exist by capitalizing on its strengths more quickly than its competitors.
SWOT analysis can bring many benefits to Hermes Paris, as shown in the following paragraphs:
- It could provide valuable information to help you develop effective business strategies.
- It allows Hermes Paris to maximize its strengths. Hermes Paris to increase its strengths and overcome weak points, minimize risks and take advantage of opportunities.
- Hermes Paris can pinpoint the core competencies, perform market forecasts, and also do future planning.
But, the SWOT analysis of Hermes Paris is not without constraints that the business has to take into consideration in order to meet its strategic goals.
- Sometimes, it’s difficult to distinguish between threats and opportunities as the same opportunity could also act as a serious threat if a company cannot seize it promptly.
- It simplifies the process of the identification of strengths, weaknesses opportunities, threats, and strengths. The factors that are identified are not placed in order of importance and importance because of this, SWOT offers only a limited amount of details.
- The complex interdependency between the internal (strengths/weaknesses) and external (opportunities/threats) environmental factors make the analysis more difficult.
- SWOT analysis is not able to take into consideration the rapid nature of a changing environment.
- The SWOT analysis is not able to provide alternatives or suggest strategies.
- The analysis of weaknesses, strengths potential threats, strengths, and weaknesses creates a wealth of data that can only be of use to a small extent.
The limitations that SWOT Analysis has for Hermes Paris highlight the necessity to look at the whole picture.
Understanding and acknowledging these limitations could further improve the process of strategic decision-making.
SWOT Analysis Weighted By The Weight
- The weighted approach to Hermes Paris SWOT Analysis is utilized to assign weights after identifying weaknesses, strengths opportunities, threats, and weaknesses.
- The decision-making process based on SWOT analyses that are weighted could enhance your Strategic effectiveness of Hermes Paris and result in a more insightful strategic analysis.
- The weights are determined by taking into account the likelihood of its incidence, intensity, and impact on the environment.
- The weight-assigning system permits Hermes Paris to identify the areas that need to be emphasized, which areas should be avoided for the short-term, and which ones are best avoided due to their lack of importance.
However, a weighted SWOT analysis is a superior method over the conventional, unweighted SWOT analysis.
However, a weighted SWOT analysis does not come without its own limitations. It, for instance, doesn’t provide a comprehensive view of how internal and external environmental factors affect the company in the short – and long-term.
Fitbit has built its reputation by providing users to have a pleasurable and exciting way to monitor their fitness goals.
It gives them the knowledge and expertise needed to extend efforts in providing valuable insight into the health of an individual.
Fitbit offers a huge chance to grow over time by focusing on what led them to become its position as a market-leading company, and focusing all its energy on health and wellbeing by offering more convenient and thorough ways for both patients and health care providers to keep track of the data of an individual. Fitbit’s aesthetic will also assist in replacing bulky devices that aren’t aesthetically appealing.
Fitbit will be required to conduct market research in order to discover the needs of healthcare providers and patients. need to create the tools they require and also understand the data that requires tracking.
This process will also necessitate Fitbit to invest in development and research to satisfy the needs of those who require it.
Partnerships can be formed not just with healthcare providers as well with medical devices and insurance companies too.
If Fitbit can integrate other medical devices within the app, they could benefit from an additional advantage over their rivals by providing greater features and services which could provide an amazing competitive advantage, particularly considering how fierce the competition within the market is, as was shown earlier in The Porter’s Five Forces model.
Based on research, it’s conclusive that both companies are actually in control of the Fitbit case helping the industry over the past four years.
They compete fiercely with the introduction of innovative products to lower their costs either to improve an existing product or even to launch new products.
The two companies have expanded their competition to different markets by expanding their reach to the world market and by operating production facilities in various geographical regions throughout Europe as well as Asia. In order to boost its revenues, it needs to be able to expand its geographic reach.
This will allow the company to increase its customer base, and allow it to keep its position within the Fitbit business.
The business must alter its products to attract the attention of consumers to its products and gain an important market position.