Fitbit Inc (NYSE:FIT) To Strategize To Compete More Effectively With Apple Inc. (NASDAQ:AAPL)
Fitbit Inc (NYSE:FIT) recently paid millions for ad time during the Super Bowl, so that it could promote its new fitness watch, Fitbit Blaze. This move aroused questions about the company’s strategy to compete against giants such as Apple Inc. (NASDAQ:AAPL).
There is no doubt that there is a lot of competition in the wearables industry especially the smartwatch division with the Apple Watch leading the race. The bar for success has therefore been set high, and any brand seeking to compete in this segment must, therefore, employ more competitive technology so as to stay afloat.
For any brand to maintain success in the wearables market, it must strike a balance between technology and market shifts while maintaining their focus on the qualities that make the brand what it is. In this case, Fitbit made its debut as Manufacturer of stylish fitness tracking wearable devices. The name itself was centered on fitness.
For a long time, the company has been thriving with products such as the Fitbit tracker which maintained its focus on fitness. The firm recently launched a smartwatch called Fitbit Blaze that is a significant shift from the pure focus on fitness into smartwatch territory. It also aims to be a direct competitor to the Apple Watch.
Critics describe the move as a risky decision because the firm decided to move from a market that it is completely aware of and jumped into a territory that it has not chartered before. Such a decision could spell doom for the firm. BlackBerry Ltd (NASDAQ:BBRY) is the perfect example of a company whose performance deteriorated when it tried to do what other companies were doing rather than maintaining focus on its core strengths.
A firm’s success is therefore determined by whether it maintains its focus despite the shift. Fitbit needs to preserve its differentiated market regardless of their decision to compete in a new segment. That way there is something to fall back on in case things go south in the new market. It should also have a clearly defined strategy that will surely step up against the competition.