Question

suggest steps the company might take to reduce its losses and establish profitability,

the cenario:

This February, FitBit reported a revenue of $1.6Billion, GAAP net loss per share of $(1.19), non-GAAP net loss per share of $(0.26), GAAP net loss of $(277) million, non GAAP net loss of $61 million, cash flow from operations $(61) million and free cash flow of $(25) million

According to USA Today, the shares plunged 15 % in after-hours trading after a disappointing quarterly report. They had been expected to have a break-even quarter with a revenue of $589 million.

This is a very difficult business with many competitors in the field including Apple’s new cellular watch. FitBit sold 15.3 million devices in the full year of 2017, a dramatic downswing from the 22.3 million sold in 2016. Some analysts claim the slow holiday season among others was a factor in the lower than expected results.

With the demand moving towards smartwatches, FitBit expects a revenue decline of 15-20 percent in the current quarter. Management says it will focus on managing down expenses, expand the smartwatch category and support the global health and fitness community to help boost sales in 2018.

Answer 1

Answer)

1) Here, the fitbit must try to decrease the holding costs by adopting the just in time policy.

2) Continuous innovation of new features as people who buy fitbit or apple watches expect better differentiation rather than pocket friendly.

3) innovation of me technology for cheaper production of watches.

4)Establishing a reliable channels of distribution network add they help in reducing costs through elimination of useless middle man charges.

5) Better customer service than competitors as customers will be attracted towards it.