GolfLogix Case of Study Essay
How does the xCaddie create value? Is it compelling?
To start with I am going to talk briefly about GolfLogix and its different products.
GolfLogix is a quite recent company which was founded in 1999 in Arizona (US). It was based on a simple concept, using the GPS to aid golfers to improve their game or to make it easier. For this reason, GolfLogix developed the xCaddie, a handheld GPS receiver. Nowadays, the company offers two different systems. The first one is the
“Distance Only System”, which can calculate the distance from where the golfer is hitting to the green; and the second one, which is called the “Complete System” and makes even more for the golfer, such as recording the progress of the …show more content…
1. This option is less risky. Looking at the point that golfers form a quite traditional market, GolfLogix would risk more if the company goes through retail channels, its products would have a long introduction stage into the market, because players
(above all the avid golfers) are a bit resistant to new technologies if they are in relation with the game of golf, because, as we see in the text, they might think “What’s next?
Do they also provide a robot to hit the ball for you?”. However, many golfers who have tried either of the systems said they would use them again if they are available in the courses they usually play.
2. The number of golfers grows by about 200,000 to 400,000 each year. For this reason, we feel it would be hard for GolfLogix to target the individual consumer because there are so many of them and not all are avid golfers, what means that the
“Complete System” will fail in their majority.
3. Both systems need so many of labor hours in mapping the courses. If a golfer doesn’t play golf as a routine, he or she would not take the time to map out the course and download all of his or her personal information into his or her own personal xCaddie. On the other hand, if the courses offer these systems already ready, golfers would use the xCaddie without any problem.
4. By targeting the golf courses, GolfLogix would also be indirectly targeting the consumers. If the consumers like