Company "Pivot"

Pivot has many competitive advantages, which can be assessed according to Michael Porter theory (included in an appendix):
Porter's Five Forces Analysis;
The value chain;
Cost leadership, differentiation, focus (economics);
Global strategy
As we know Pivot began in early 1970’s, what gives them an advantage, customers already know them a certain period of time. It means, Pivot has developed its technology and working process. Knowing and working with them, Pivot has established relationship with a customer. Customer trust and reliance is an important thing to company own.

Pivot customers are in the high-volume and low-cost segment of the fitness business. Low-cost accepts responsibility for buyer propensity to substitute the products, which is one of Porter's Five Forces.

High-volume products are with reputation with good quality. Combining the quality with price, Pivot can avoid the threat of substitute products. Although there is an existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand).…