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Case Details

Case Code: BSTR580
Case Length: 16 Pages 
Period: 2007-2019   
Pub Date: 2019
Teaching Note: Available
Price: Rs.400
Organization : Fitbit, Inc.
Industry :Technology & Communications
Countries : United States
Themes: Turnaround Strategy/Competitive Strategy/Strategy Formulation
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
Technology
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Economics
Leadership & Entrepreneurship

Fitbit: Turnaround Challenges

 

ABSTRACT

 
This case is about the success and fall of leading global wearables company Fitbit, Inc. (Fitbit). As a pioneer in the wearable fitness tracker business, Fitbit tasted initial success and introduced many models of wearables, which became highly popular. With Apple Inc. (Apple), foraying into smartwatches, Fitbit also started making smartwatches. At the same time, Chinese players like Xiaomi entered the market with feature-rich, low-priced wearables. Fitbit could not compete either with Apple at the high end of the market, or with Xiaomi at the lower end, and started losing its share rapidly. Its problems were compounded by a rise in operating expenses, quality control issues, data security issues, and durability and the company found itself struggling in the wearable device market. And with consumer interest in the wearable devices going down, Fitbit had huge challenges ahead.

James Park (Park), co-founder and CEO of Fitbit, was looking to implement a suitable turnaround strategy to bring Fitbit back on track. He brought in Jeff Devine (Devine) who was given the task of coming up with a strategy to turn the company around.

 
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Issues

The case is structured to achieve the following teaching objectives:
  • To appreciate the importance of focus and a clear recognition of its strengths for a company.
  • To analyze the reasons behind the decline of the pioneer in the wearable devices industry.
  • To examine the events that would lead to the turnaround of a company.
  • To study the future of the wearable devices industry, considering the changing trends and preferences of the consumers.
Contents
INTRODUCTION
BACKGROUND NOTE
THE RISE OF FITBIT
PROBLEMS
THE ROAD AHEAD
EXHIBITS

Keywords

Turnaround Strategy; Decline; Evaluation of a turnaround plan; Competitive strategy; Fitbit; James Park; Strategy Formulation; Wearable Devices Market

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