Market analysis:
1. Degree of rivalry
There are 3 other exercise apps out there that also have exercises based on body areas / muscles: Fitness Point, JEFIT, and Fitness Buddy. Fitted will differentiate itself with a more simple UI and aesthetically pleasing design.
2. Bargaining power of suppliers
Since "Fitted" is an app, the "supplier" is the developer who codes the app. Since there is plenty of developers in the Bay Area, and the app's first versions are quite basic (will not require advanced coding skills), the supplier will not have much bargaining power.
3. Threat of new entrants
Threat of new entrants is high. Fitness is currently a cultural trend so it is likely an area of attention for many. A large company in the sports industry (ESPN, etc.) could easily clone the app.
4. Bargaining power of buyers
App users will not have any bargaining power as they will download the app through the app store.
5. Threat of substitutes
Users could always switch to looking up very targeted fitness tips online or in fitness books. However, since the overall trend is consumers increasing share of time on mobile, the threat of substitutes on other platforms is low to medium.
Market size:
Limit to US for near-term
318M people in the US
52% smartphone penetration
= 165M people with smartphones
94% Android & iPhone share of US smartphone market
= 155M people with Android or iPhone
50% of population that exercise regularly (source: http://www.statisticbrain.com/percent-of-americans-who-exercise-regularly/)
--> Market size of ~80M people
Trends Analysis: what are potential opportunities or risks within the four trend areas below?
-Technology / Societal: health monitoring devices (fitbit, etc.) are becoming very popular and more affordable. In turn, demand for Fitted could increase in sync with the rise in health monitoring devices as there is more awareness on health and fitness. On the other hand, once consumers start moving on from the devices trend, there is a risk that Fitted could face retention issues.
-Regulatory: a potential regulatory risk is if the government restricts non-certified parties from providing physical exercise recommendations to diminish consumer injury.
-Socialeconomic: since the product is a smartphone mobile app, one potential risk is if demand for smartphones for some reason decrease (on the other hand, the market increases if access to smartphones around the globe increases).
There are 3 other exercise apps out there that also have exercises based on body areas / muscles: Fitness Point, JEFIT, and Fitness Buddy. Fitted will differentiate itself with a more simple UI and aesthetically pleasing design.
2. Bargaining power of suppliers
Since "Fitted" is an app, the "supplier" is the developer who codes the app. Since there is plenty of developers in the Bay Area, and the app's first versions are quite basic (will not require advanced coding skills), the supplier will not have much bargaining power.
3. Threat of new entrants
Threat of new entrants is high. Fitness is currently a cultural trend so it is likely an area of attention for many. A large company in the sports industry (ESPN, etc.) could easily clone the app.
4. Bargaining power of buyers
App users will not have any bargaining power as they will download the app through the app store.
5. Threat of substitutes
Users could always switch to looking up very targeted fitness tips online or in fitness books. However, since the overall trend is consumers increasing share of time on mobile, the threat of substitutes on other platforms is low to medium.
Market size:
Limit to US for near-term
318M people in the US
52% smartphone penetration
= 165M people with smartphones
94% Android & iPhone share of US smartphone market
= 155M people with Android or iPhone
50% of population that exercise regularly (source: http://www.statisticbrain.com/percent-of-americans-who-exercise-regularly/)
--> Market size of ~80M people
Trends Analysis: what are potential opportunities or risks within the four trend areas below?
-Technology / Societal: health monitoring devices (fitbit, etc.) are becoming very popular and more affordable. In turn, demand for Fitted could increase in sync with the rise in health monitoring devices as there is more awareness on health and fitness. On the other hand, once consumers start moving on from the devices trend, there is a risk that Fitted could face retention issues.
-Regulatory: a potential regulatory risk is if the government restricts non-certified parties from providing physical exercise recommendations to diminish consumer injury.
-Socialeconomic: since the product is a smartphone mobile app, one potential risk is if demand for smartphones for some reason decrease (on the other hand, the market increases if access to smartphones around the globe increases).
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