PEBBLE SMARTWATCH
Pebble, founded by Eric Migicovsky, burst onto the scene in 2012 with a Kickstarter campaign to launch its first smartwatch. It raised $10,266,845 (£6,285,947), the highest amount secured on the platform at that time at a short period of time, to fund the production of the first smartwatch.
Pebble proved there was interest in the wrist-worn gadgets, well before Apple introduced the
Apple Watch and other big tech companies followed suit. Its success elevated a trend that would end up being led by the likes of Apple, Fitbit and Jawbone. The smartwatch had arrived. This was then followed by a series of successful crowdfunding campaigns, raising million dollars order, and creating a cult-like Pebble community of users and third-party developers.
Yet, four years on, in December 2016, it announced $40m fire sale to Fitbit. As part of the deal, it will own Pebble’s intellectual property and operating system and be shutting down its hardware division; mthe jewel in the crown of the crowdfunding champions. Pebble is, ironically, sinking like a pebble.
As an analyst for Widiarto & Naqavi LLP, you are expected to submit a consultancy report covering the following three aspects:
1. Identify
Analyse why Pebble failed despite its previous success and its cult following, using Root Cause
Analysis using Ishikawa/Fishbone diagram (identifying the root causes), Multi-level Causal analysis, and external & internal cause theoretical frameworks that are covered in this module.
The analysis should be explained thoroughly and backed by strong arguments, as to what happened to Pebble and how it became factors driven the demise of Pebble. (30%)
2. Compare
One of Pebble’s competitors, Jawbone, was one of the prominent players in the fitness tracker which first entered the public sphere as a maker of wireless technology, selling Bluetooth headsets and wireless speakers under the stewardship of CEO Hosain Rahman, and later became a unicorn which raised funding with $3 billion valuation from some of the biggest venture capital
in Silicon Valley. However, it also failed in 2017.
Analyse why Jawbone failed using Root Cause Analysis using Ishikawa/Fishbone diagram (identifying the root causes) and Multi-level Causal analysis, Compare and contrast the failure case of Pebble to the failure case of Jawbone, and
present what your keytakes are from these two failure cases. (40%)
3. Strategize If you were replacing Eric Migicovsky as CEO of Pebble, what turnaround or exit strategy that you want to develop? (20%)
Additional Marking Weight:
Presentation (structure, language and referencing style) 10%
This final coursework is expected to be prepared in consultation report style, not academic essay.
Use tools, theories and concepts drawn from lecture material, recommended reading, reputable business and news media sources (e.g. Forbes, BusinessWeek, BBC), and independent study to identify root causes of failure and develop a turnaround or exit strategy.
A good assignment will:
• Conduct an analysis to identify and evaluate the root causes of failure using
Ishikawa/Fishbone diagram, evaluating any changing conditions or major decisions
central to failure
• Conduct an effective analysis using Multi-level Causal Analysis (for both cases) and
internal-external causes theoretical frameworks (for Pebble)
• Have a clear argument and thesis, with a balance of analytical and descriptive writing, and diagrams where necessary
• Frame and support analysis with relevant company performance information, industry evidence, references to material from the module and wider academic readings
• Offer considered rationale for turnaround or exit strategy
• Be clearly structured and written with references in report style (not Harvard
referencing style, but footnote-style Chicago Referencing system)