1.Rivalry among competitor: StrongThe intensity of rival among competing sellers as Garmin, Under Armour and Apply is very vigorous and likely to remain so. All of them try the best to attract tocustomer and gain more market share. Rivalry is stronger because of some factors:All 3 rivals and the other are aggressively pursuing top-line revenue growth(chieftly by producting new products, creating more value for customers and so on). The industry is becoming somewhat mature, achieving fast revenue growth.It becomes the less costly for buyer to switch brands: the prices of 3 company have been at “bargain levels” in order to attract buyers . The level prices of rivals are the same as Fitbit, so it is easy for customers to change between some of brands. For example, Fitbit Charge HR is 130 USD while Garmin Vivosmart HR is 150 USDThe products of rival sellers become less strongly differentiated: from the case, we know that Apply also produce smart watches that perform many ofthe same tasks as Fitbit’s devices. When offerings of rivals are identical or weakly differentiated, buyers have less reason to be brand-loyal. The Fitbit Charge HR and the Garmin Vivosmart HR track many of the same metrics: steps, sleep, calories, distance, floors climbed and heart rate, and Garmin Vivosmart HR even creates more value for customer such as: offering greater water-resistance than the Fitbit (165 feet versus merely splashproof); providing notifications for email, Facebook and Twitter; letting you control music from your smartphone; showing the weather; and helping you find your phone.The number of competitors increases and they become more equals in size and capability: As of 2015, almost all of the major companies in the consumer electronics industry had launched smartwatch products, includingSamsung, Motorola, and LG, further suggesting that the market for wearable devices was growing. American market research firm
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- Spring '14