BX3173 - Innovation Driven Entrepreneurship
Overall, activity trackers have been emerged due to users’ awareness of their physical activity and the demand of self-monitoring has been increasing (Alley et al., 2016). Those devices and the associated applications could offer a range of training plans and assistance from the advanced data in order to offer proactive support or help with decision-making (Canhoto, & Arp, 2017). The increase of using wearable technology is also the result of the increase in population ageing, chronic diseases and healthcare costs (Canhoto, & Arp, 2017). Those collected data from the devices is also useful for other stakeholders facilitating their purposes such as governments, insurances, marketing, or hospitals.
Situational analysis (SWOT) is conducted to overview the products’ aspects which are strengths, weaknesses, opportunities and threads (see Table 1). We target to the smartwatch consumer market, because the growth of this market has been higher than fitness trackers and other markets (see Figure 1). Smartwatches are believe that giving users more benefits by their features (Business Insider Australia, 2015). We assume that Australian market is great opportunity, because Australians positively respond to activity tracker devices. The number of smartwatches sold in Australia has grown 80% compared to just 8% worldwide in 2017 (Dudley-Nicholson, 2018). The important characteristics of the wearable technology are wrist located, providing accurate information and sync ability (Alley et al., 2016). The market share of wrist wearable location make up more than 90% of the global wearable market (Wieneke, Lehrer, Zeder, & Jung, 2016) (see Figure 2).
We also assume that our potential customers can affordable for our products, because the level of disposable income increase 1.5% 2017-18 compared to 2015-16. Australians are interested in the latest technology and have spent 8% more on electronic goods according to Comsec, 2018. Interestingly, we find that Australia is a great potential market, due to there is about 50% of Australians falls into inadequate physical activity levels (Alley et al., 2016), if those people are influenced by those active people or social trend of healthier lifestyle, and turn to be more active, which positively impacts on our product sales. In fact, employers and government aids boost consumption of activity trackers in order to encourage people being more active, because the increase of costs are related to health.
We are aware of some threads related to information privacy concerns of data disclosure collected by product. Population ageing increases, elderly prefers simple technology rather than advanced products due to ease of use, so that it could end up switching costs and brand loyalty. More importance is high costs of manufacturing for a start-up company including research, marketing & promotion, shipping, licensing, software, and development of wearables. In addition, innovation development has led to high competition environment among larger companies such as Apple, Garmin and Fitbit.
Mitigation, avoidance, or acceptance Managing supplier sustainability risk?
Integrating risk management in the innovation project?
Smartwatch sales are skyrocketing but Fitbit users need friendly rivals to get fitter fastest?
Inquiry into National Freight and Supply Chain Priorities