ipl-logo

Fitbit Swot Analysis

1214 Words5 Pages

Business Opeartions: Equity Funding Jaspreet Kaur Brar 7236144 MGMT 8340 David Knight August 4, 2015 FITBIT IPO Fitness is the most popular company and it is well known for its products of the same name that the company has. Fitbit offers compact, wireless and wearable sensors that track the daily activities of the person in order to promote a healthy lifestyle to the people (CrunchBase, 2015, p1). Fitbit was founded by Eric Friedman and James Park in 2007 and is located in San Francisco, California. On June 17, 2015, fitbit went off public and “FIT” is the trading symbol of the company (MediaWiki, 2015, p2). Reasons to Become Public Corporation: Competition There is a tough competition between the companies making …show more content…

After the IPO, the range of the price was raised from $17 to $19. $20 was the final price which was increased again for an IPO. It gives a Fitbit $4.1 billion valuation. In the mid of march 2015, fitbit has sold over 20.8 million devices since its inception. More than half of the device, 10.9 million were sold in 2014, up from 4.5 million in 2013 and only 3.1 million devices were soli in 2013. The high value of fitbit already surged to more than 6.1 billion and on the first day of trading, forbid stock price gained more than 50% (Lombardi Publishing Corporation, 2015, p3). Money raised by the IPO expected to be used for Fitbit decided to use the money in the expansion of the business in future as well as also to re-invest in the infrastructure of the company. Secondly, fitbit looks to invest in new models. Last, the company will use the raised money in the process of research and development so as to strength the products and line up the services of the company and possible acquisition as well. Popularity Fitbit has turned out to be more popular than expected, which along with raising the price of the deal twice. It also sells more shares than expected. Sales of the company rose from 174% to $175 million last year. (Fortune, August 2015, …show more content…

Competition Wingstop follows the footsteps of a number of other fast casual restaurant companies. They aimed to fly above the fast casual competition as well as ready to spread its wing. Therefore, wingstop decided to go public in order to give the tough competition to QSR chains because of their ability to stand out against fast casual investments. Stock Wingstop became a public corporation in order to list all its common stock on the Nasdaq Global Select Market under the symbol Wing (Jon c, 2015, p3). Attraction The other reason for becoming public corporation is to attract the investors and stakeholders in order to sale its additional shares of the common stock and also to create the awareness among people. Revenue After the IPO, the total revenue of the wingstop was increased to $67.4 million and net income also rose by $9 million. Dollar Objective of Wingstop The IPO price range expected by the Wingstop chain was in between $12 to $14 per share. After the IPO, the range of the price was raised to $19 per share that was about $110.2 million. In the offering, a Dallas based company sold 2.15 million of the 5.8 million

Show More
Related
852 Words | 4 Pages

The initial share price is proposed at $3.00, though this may be adjusted at pricing based on market response. Full exercise of the over-allotment would bring the post-IPO share count to 46.7 million. The IPO's net proceeds, estimated at $4.7 million or $5.6 million with over-allotment, are slated for executive loan repayment and enhancing inventory and workforce. Directors, officers, and significant shareholders will face a six-month lock-up period after the IPO. 4.

Read More
571 Words | 3 Pages

SWOT remains the universal language of an organization that stimulates influences over the business’s greatest strengths, weaknesses, opportunities, and threats (UMUC, 2017). For that reason, a company should also evaluate internal influences (e.g., the strengths and weaknesses) that affect the business as well (UMUC, 2017). In addition, a company should evaluate external influences (e.g., opportunities, threats) when assessing SWOT (UMUC, 2009). Additionally, when assessing SWOT of the organization, it becomes imperative to assess internal as well as external factors that reflect positively and negatively on the business environment.

Read More
1286 Words | 6 Pages

The creation of the company came after the creators recognized the power and capabilities of wires and sensors and their application to fitness and health in people’s everyday life. So what is Fitbit? Fitbit is a wearable device that promotes health through its interactive interface that allows users to track and record their accomplishments by creating graphics and chart of: steps walked, calories burned, pace, etc. In addition, this wearable device

Read More
912 Words | 4 Pages

The company owns and operates network in 26 countries, in addition to over 50 countries where it maintains partners. In 2012, market capitalization approximated by the time to be 89.1 billion pounds. It was recorded as the third largest of any company listed on the London stock exchange at the

Read More
1042 Words | 5 Pages

Since their foundation in 2007, FitBit has empowered users with revolutionary technology capable of tracking activity and reaching fitness goals. However, the rapid advancement of smartphone technology and app development was a threat to the company. In other words, smart-phone compatible wearable technology was on the horizon of FitBit’s impending doom. Competitive forces such as the Apple Watch and various devices through AndroidWear were beginning to tap into the wearable technology industry. This meant early FitBit products were going to be competitively outmatched by superior products.

Read More
232 Words | 1 Pages

It manufactured, marketed and designed BlackBerry product and lately reached 14 million subscribers globally and completely $6 billion in revenue. The BlackBerry’s first project was a $600,000 contract with

Read More
407 Words | 2 Pages

Currently they invested around a million dollars from fund to improve the business as well as to raise the leads. On the other hand, when compared

Read More
757 Words | 4 Pages

The business began public trading on NASDAQ December 8th, 2000, at fourteen dollars a share. To this day, they have grown to sixty dollars a

Read More
1280 Words | 6 Pages

The growth did not cease, continued to inflate with the addition of “BuzzFeed UK” in 2013. Within a year, BuzzFeed was valued at $850 million

Read More
3388 Words | 14 Pages

At the end of the day, Under Armour became the first American based initial public offering to double on its first day of trading, in 5 years. About 12 million shares were sold allowing Under Armour to generate $157 Million. Under Armour continued its steady assent the following years and in 2010 accomplished an incredible milestone of $1 Billion in annual

Read More
564 Words | 3 Pages

As of April 18 of 2017, Farabella’s stock price is at $26.2 price per earnings according to the Morningstar website. They have had a revenue growth in a 3 year average of 12.2 of stock. Currently their day change has increased 0.03%, where this emphasizes that overall this company is doing okay and had declared dividends earlier this year in March with a yield of

Read More
1808 Words | 8 Pages

Fitbits pricing strategy needed major improvement, the company suffered major losses in the previous years, the new ionic watch is promising good news for investors with the new smartwatch. The company generated $393 million of revenue in the third quarter, which was near the top end of management's guidance range. This may still be a 22% of sales decline, but it is an improvement from the last quarters 40% slump. This is the first time in the past two years the company sales have not worsened. However, Fitbit still needs to up its game like competitor, Garmin.

Read More
2869 Words | 12 Pages

Since 1995, the studio has produced 14 feature films, the majority of which were successful financially making more than $8,6 billion worldwide, and also have obtained good critics from knowledgeable individuals. Especially 13 films are within the 50 animated films with the highest gross income. The studio eventually made an IPO in November 1995 in NASDAQ, with 6,9 million shares.

Read More
1390 Words | 6 Pages

• • The apple watch has popularised the market of smartwatches which is something companies like Samsung could not do. This is due to the clever marketing strategies of apple, and in turn gives them an upper hand in the smartwatch market as they are the centre of attention. • Apple can use its advantages in the smart watches in order to shift towards a new market of bio-technological gadgets. The development of the bio-sensors in the apple watch could provide a gateway for development into another market. Weaknesses

Read More
1308 Words | 6 Pages

At last, on August 30, 1994, the company announced going public and listing on the New York Stock Exchange (NYSE) by launching an Initial Public Offering (IPO), decidedly accepting the strong benefits but also risks associated with it. 1) What are alternatives for HPI to raise money? How did they raise money? Why did they use the NYSE and not the HKSE?

Read More

More about Fitbit Swot Analysis

Related Topics

Open Document