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GolfLogix Case Study
By: Levi Genesove 918407
With regard to the GolfLogix Case, it seems to me there a few problems with introducing a consumer-based product to the market.
The first problem I noticed is that if customers start buying their own xCaddie, it will upset the owners of the golf courses because the owners are already renting 60 xCaddies from the company and get their profit from people renting. If people come in with their own xCaddies the golf courses will not get a cent from them so why would buy the GolfLogix system in the first place? The company should be trying to install their system in as many golf courses as possible. If the customer had his own xCaddie and golf courses are not willing to install the systems because customers own their own xCaddies, that will also make the customers upset if he cannot obtain the map for the course he’s playing. If GolfLogix want to sell to consumers it should do one of the following: allow the golf courses to charge a smaller fee for owners for xCaddies, the golf courses can raise the price of playing a round up for everyone, have cheaper plan for golf courses who want to rent out less devices, or have a special feature like the PDA-based systems where the customer can measure the green himself or download already measured maps, otherwise selling to consumers will not be good in the long run.
My second problem is that I don’t see how they should make the risk to sell to consumers. My first reason is that the surveys showed very great results with people saying they are willing to pay a few dollars for every round of golf. If customers are willing to pay the rent, why make a consumer product? My second reason is that one of the reasons for Jeff Saltz to have the consumer xCaddie is to build the GolfLogix brand name. Instead of selling the product to the consumers to build brand name, why can’t the company force the golf courses to put on their signs and advertisements the ability to use GolfLogix....