GolfLogix just launched the xCaddie, a GPS structured device that aids golfers in calculating the distance to another green. Since things look up financially for the company with leases to golf courses and elevating awareness, the organization ponders whether it wants to explore the retail route. Through the case analysis, all of us explore the different paths prior to GolfLogix and recommend an alternative.
Organization & Product
GolfLogix Inc., a 3 year old organization with just six employees, has introduced an innovative product to the conservative associated with golf. The xCaddie should improve the golfer's game by displaying the length to the next gap. This information then can be used to pick the appropriate club. As golf grows in popularity among a diverse cross-section of the human population as demonstrated in Exhibit 1, GolfLogix hopes to cash in on this craze.
Following some success with rental the xCaddies to golfing courses, GolfLogix is considering targeting the individual consumer immediately with its product. The potential advantages of this method can be:
To improve adoption by individual customers thus placing pressure on the courses to acquire into the finish system and get their the game of golf courses planned To provide a supporting source of income separate from your lease income to golf courses Several disadvantages nevertheless would be:
The personal xCaddies would be ineffective on training which were not really already mapped out. Newly planned courses wasn't able to automatically end up being added to the library of courses about existing devices A increasing personal possession of xCaddies may suppress courses via buying their particular devices killing a continuous source of revenue intended for GolfLogix If the retail funnel is attacked, customers would expect all courses they regular to be mapped involving a big incremental cost for each course. Even if a golf course can be mapped, there is absolutely no guarantee that xCaddie owners is ever going to golf there. On the other hand, specific xCaddie owners may require that their own favorite golfing courses end up being mapped even if it does not make economic sense for GolfLogix to do so.
Consequently, even though the direct-to-user prepare sounds eye-catching, we feel that GolfLogix should certainly defer the master plan till even more golf programs are mapped. It should concentrate on the lease contract revenue by encouraging classes to be planned under a risk-free trial offer that may showcase the huge benefits of the xCaddie system.
The xCaddie has many direct and indirect competition and substitutes. Direct opponents include the Cart-mounted and PERSONAL DIGITAL ASSISTANT system also based on GPS technology and targeting precisely the same niche market. The strongest competitor is the PDA-based system for its price point, adaptability and features. Its key advantage is the ability to publish and download user-calibrated course mappings. Nevertheless , the customer uploaded mappings can be inaccurate. The Golflogix technique will present professionally carried out high quality mappings to separate itself. Offered the rapid growth in PDA possession, these GPS UNIT systems may possibly quickly become well-liked for applications like generating navigation. However, the need to use a PDA can be viewed a buffer to enter intended for non-PDA owners. The other direct competitor is the cart-mounted system having its many functionalities, however , it can be both expensive and harder to use mainly because itaВЂ? t fixed to the cart. The low-tech alternatives to the xCaddie are simple yet inaccurate and inconvenient (say at night). These alternatives are offered without or inexpensive and are acquireable on various courses. The products are indirect competitors seeing that our target market desires the accuracy gadgets like the xCaddie can provide.
In order to make the best decision about whether to enter the realtor mls database or remain in the business to business (B2B) market, GolfLogix has to consider the value that its item brings to all the markets.
For golfing courses, the primary benefit in leasing the xCaddies can be an...