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MGMT2998: Business Strategy
Facts included are comprehensive, accurate, and complete. Key ideas are clearly stated, explained, and well supported.
Evidence of thought, insight, and analysis. Answer makes sufficient connec!on between the case and course theory. Draws some deduc!ons or inferences from analysis.
Introduction
The business model on which Fitbit functions can be stated to be a model whereby they offer portable accessories to the target audience which not only helps them to track their health activities but also goes a long way in assisting the different individuals to reflect their social status. The business model simply offers the goods to the consumer in return for their cost and so far their model has been working well, however, the company faces competition from the different local suppliers in China which are cheap (Arthur, Strickland III & Gamble, 2008). The strategy which has been followed by Fitbit can be classified as a Product differentiation strategy where this hand accessory is very different from the other products which were present in the market at the time of its launch. It has prominent features which promise complete data to the different customers.
However, currently, the strategy has not been working well as there are other players as present in the market like Xiaomi and other premium brands like Apple and Samsung. However, recently as per the analysis of the financial data it can be mentioned that the market share of the firm has been falling whereby from a 38% market share in 2014, the company got down to 22% in 2016. The revenue of the company has also been going down consistently and has reduced by a margin of 30%. Read More...
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