GOLFLOGIX: CASE CRITIQUE

Kevin Barnes Mackensey Kelm Zhi Lor

MBA 629 Marketing Management

Critique of Original Presenters Decision

Team 2s decision was based on analysis of the following factors:

Break-even

costs per golf course with course fees SWOT analysis Assumption was made based on pareto analysis
80/20% 80%

was based on distance only, 20% was based on complete

Selling

to Pro shops, specialty stores, and golf discount stores, which we feel limits how many customers will be included in your target market.

Break Even Analysis Critique

The presenting team provided variable costs that are based on what the CEO said, a gross profit margin of 50-65%. Presenting team stated variable cost of $117.
If

the price of purchasing the Garmin GPS system is $200 per system, then there is no way that the variable cost can be below $200. Financial justification link to spreadsheet

SWOT Analysis Critique

Strengths:
We

agree with the two points that they made, however we feel there are more strengths, such as:
Ability

to customize directly for consumers

Weaknesses:
Additional

data could have included their limited human resources

Opportunities: we agree with their conclusion Threats: we agree with this conclusion as well

Critique of Alternatives Mentioned

We feel that Group 2s explanation of alternatives was insufficient due to:

There were only two alternatives offered:

Sell directly to consumers Offer a free 30-day trial

We could not make a determination as to whether or not they planned to continue with the current leasing of systems to golf courses The assumption was made that the audience already knew the details of the case, which is not true Additionally, they included selling xCaddie to distributors in their final recommendation, however did not mention this as an alternative

Critique of Alternatives Mentioned

The alternatives that were not identified that we feel should have been mentioned include:
Continuing

to lease to golf courses Selling complete systems directly to golf courses Group 2 did not offer DIFFERENT alternatives, but rather broke their final recommendation into pieces, and did not have an alternative that they did not choose.

Our Final Recommendation

Sell directly to consumers/agree with presenting group

in

addition to pro shops, golf specialty stores, and golf discount stores, we would also tap into mass merchants and sporting goods stores.
30%

of core golfers obtain their goods through mass merchants and sporting goods stores.

Lease directly to golf courses through distributors Sell directly to golf courses at the same cost as a 3 year lease

Pros and Cons of Recommendation

Pros: We expand our market base We appeal to customers on different levels, meeting their needs in a more customizable manner Larger revenue source (this is due to expanded target market) Marketing directly to the consumer

Cons: Increased investment HR costs would increase due to increased need for sales staff, advertising costs, and mapping of courses Potential to alienate golf courses (by advertising the complete system, golf courses would still have the opportunity to differentiate themselves from the product that is available directly to the consumer)

Company Updates

August 2002: Golflogix expanded into Ohio and the New England States. September 2002: Golflogix assigned exclusive licensing rights to UK based GPSL for distribution of their products throughout Europe and the Middle East. 2003: Golflogix was granted a U.S. patent for its unique GPS and internet-based round tracking application June 2003: Golflogix announced that it had signed an exclusive licensing agreement with on-pin GPS golf systems, based in Sydney, Australia March 2004: Golflogix announced the availability of hits hardwire option.

Updates Continued

April 2005: Golflogix launched new software November 2005: Golflogix announced that the company was seeing the immediate effect of the USGA and R^A new sanctioned use of distance measuring devices. January 2007: Golflogix and Garmin entered the consumer handheld GPS golf market; Golflogix selected Forefront to be their exclusive distributor. February 2007: Golflogix GPS unit was a highlight of the PGA merchandise show. April 2008: Consumer reviews state of one the great benefits of Golflogix is that it is so easy, there are no buttons to push.

Updates Continued

July 2009: Blackberry Turf, the first ever golf app for smartphones was launched February 2010: Golflogix made the Top 10 list of incredible iPhone apps. April 2010: Golflogix offered free download of its applications for iPhones July 2010: Golflogix launched a new website, www.golfgps.com August 2010: a FREE online community was launched at golflogix.com December 2011: Golflogix was now on Google+

Updates Continued

March 2012: Golflogix had maps for over 30,000 golf courses with precise GPS technology November 2012: Partnered with Golfsmith January 2013: Golflogix golf app surpassed 2 million active members March 2013: Golflogix partnered with GolfNow February 2014: Goflogix golf app surpassed 3 million member milestone

Works Cited

http://www.golfgps.com/newsreleases.asp?k=AUSTRALIA http://www.bizjournals.com/phoenix/stories/2002/0 8/05/newscolumn5.html?page=all http://www.golflogix.com/NewsFiles/10ecb73ed61f-401f-9991-80ce8d239493.html http://www.golfgps.com/latestnews.asp?k=HARDWIRE http://www.golfgps.com/newsreleases.asp?k=SOFTWARE http://www.golfgps.com/newsreleases.asp?k=USGARA

Works Cited

http://www.golfgps.com/latestnews.asp?k=ENTERS http://www.golfgps.com/newsreleases.asp?k=INCREASE http://www.worldgolf.com/newswire/browse/13434 -GolfLogix-GPS-8-quickly-gaining-acclaim-fromgolfers-worldwide - GolfLogix GPS-8 http://www.worldgolf.com/newswire/browse/62564 -GolfLogix-Offers-FREE-Golf-Scorecard-StatTracking-App-Membership-iPhone http://www.worldgolf.com/newswire/browse/63827 -GolfLogix-Launches-New-Website-1-Selling-GolfGPS-App-Access-FREE-Download-Easier

Works Cited

http://www.worldgolf.com/newswire/browse/63982-GolfLogixCreates-Free-Online-Golf-Community-Thousands-Golfers-JoiningDaily http://www.worldgolf.com/newswire/browse/70743-GolfLogixSurpasses-30000-Courses-Mapped-Precise-GPS-Technology http://www.worldgolf.com/newswire/browse/73537-GolfLogixLaunches-%E2%80%98-Pro-Shop-PoweredGolfsmith%E2%80%99-Bringing-Exclusive-Product-Offers-Righ http://www.worldgolf.com/newswire/browse/73984-GolfLogixWorld%E2%80%99s-No-1-Golf-App-Surpasses-2-Million-ActiveMembers http://www.worldgolf.com/newswire/browse/74638-GolfLogixIntegrates-247-GolfNow-Tee-Time-Booking-World%E2%80%99sNo-1-Golf-GPS-App http://www.worldgolf.com/newswire/browse/84918-GolfLogixWorld%E2%80%99s-No-1-Golf-App-Surpasses-3-Million-MemberMilestone