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Int 640

Product and country background

Young company Fitbit Inc. was established in 2007. The head quarter is situated in San Francisco, California USA. The company produces their products in Singapore, Indonesia, and Malaysia, because these countries provided the cheapest labor force and raw materials (Brown, 2008). We are going to consider fitness tracker, which produced by Fitbit. Zip, One, Flex, Charge, Charge HR, and Surge are different models of fitness trackers. Primarily they look like bracelet. According to the website of Fitbit Inc., Fitness tracker is an innovative device, which allows people to measure a distance run, number of steps for the whole day, quantity of burning calories, and pulse (2015). Moreover, the gadget determines sleep phase and wakes up user in the best time for him. In addition, some models have а display, which demonstrate all data on the screen. However, it is possible to connect Fitbit with PC, tablet, or smartphone and apply certain app for it.

Even Fitbit Inc. is American company, which operates outside the country in Europe, Asia, and South America. The most interesting country for future development of Fitbit is Germany. Germany has the most powerful and effective economy in the whole Europe. High salaries, good social security, and lack of corruption make German market more attractive and provide excellent conditions for entry.

Rate of unemployment is just 6%. Inflation is extremely low and counted as 1.6% (The world bank, 2015). Country has perfect geographical location in Europe. It is а relatively small country, where population is about 81 million Germans. Germany has own natural resources like arable land, natural gas, potash, iron ore, salt, uranium, nickel, coal, copper, lignite, and timber,. Also, country has very famous manufactories in the world like BMW and Mercedes. Thus, country sells outside foodstuffs, vehicles, machinery, metals, textiles, and chemicals. As Germany is а leader of Euro Union, country has good relationships with many other partners like Belgium, China, USA, Poland, Italy, Austria, Spain, United Kingdom, Netherlands, and Switzerland (Infoplease, 2015). Furthermore, Germany is а developed country, where people apply innovative technologies. Thus, the country is the best choice for fitness tracker of Fitbit.

Market Segment

Last year, actual sales of health and fitness trackers (HFT) easily outstripped smartwatches. This was driven, in part, by the significantly lower average sales price of HFT, making these devices more affordable than full-feature smartwatches. Another reason for the higher popularity of HFT (according to a GfK survey of 5000 smartphone owners across five countries1) is the fact that a majority of consumers see activity tracking as being the most important function of a wearable – including a smartwatch at the present time.

In Europe’s biggest markets, Germany, Great Britain and France, actual sales3 in Q4 accounted for 36 percent of the total volume sold in 2014. This leads to the conclusion that wearables are a popular gift during the holiday season and provide an optimistic outlook for 2015.

The global fitness industry continues to benefit from growing awareness of health issues and the importance of exercise in maintaining good health. Consumers of fitness services and products are aware that fitness can provide the necessary tools to optimize one’s health, improve quality of life and extend life span. Examples of fitness industry services and products include physical training equipment, fitness coaches and fitness tracking tools, allowing consumers to keep a close record of their progress and fitness goals.

Apart from growing demand among private consumers, the launch of corporate wellness programs also continue to fuel demand. Companies are paying more attention to employee health and investing in fitness solutions to improve well-being, which in turn boosts productivity, cuts down on absent days due to illness and promotes social interaction between employees. Demand for fitness solutions from individuals with busy work and home lives are catered for through technological innovation and a constantly widening array of exercise options.

With increasing awareness of the potential of fitness regimes in extending life span, older adults are undertaking fitness programs with far greater frequency than in the past. The 2012 World Survey of Fitness Trends points to the high level of discretionary money at the disposal of the retired baby boom generation. This age bracket is in a position to finance memberships with top-end fitness clubs and has the time to undertake long-term exercise programs.

The global fitness industry will continue to record steady growth as demand for a wide range of fitness solutions grows due to health awareness and government programs to promote healthy living. Health centers and sports clubs will remain competitive through innovation, offering clients new fun ways to exercise.

Germany: Based on low prices, a cool city, and a few successful entrepreneurs, Germany’s capital Berlin has become a major startup hub in the last years. If combined with the strong industrial basis of the country (incl. in electronics and watch manufacturing), Germany is a promising place for future health fitness trackers innovation.

Reference:

About the Company. (n.d.). Retrieved June 6, 2015, from http://www.fitbit.com/about

Brown, J. (2008, November 12). Where the Fitbit is built. Retrieved June 6, 2015, from https://blog.fitbit.com/where-the-fitbit-is-built/