Golflogix Analysis

GolfLogix Case

1. What are the pros and cons of distributing through the three different channel options: golf course only, retail only, or both?

GolfLogix was founded on a simple concept – using the satellite-based global positioning system (GPS) to aid golfers in playing the sport they loved. After years of marketing effort, GolfLogix has been adopted by numerous golf courses, and several golf courses agreed to a 30-day free trial. Being supported and adopted by golf course is the first milestone, however, what would be the next surge? Direct-to-consumer market seems to be an unavoidable step.

On the top of all pros and cons, targeting consumers directly would jeopardize relationships with golf courses that the firm had worked hard to establish. First, focusing on the golf course channel could strengthen the relationship with golf course, and they could provide the stable revenue stream because of their conservative culture which create a long term relationship with firm, and their sale force which could bring in stable amount of golfers. Finally, the firm could obtain a steady growth in the future, however, this step could permanently rely on golf course, and the business could be manipulated by golf course because they are directly contact and obtain the first hand information from end-customers.

As the statement above, targeting consumers directly would jeopardize relationship with existing and future potential golf courses. However, the advantage of targeting direct-to-consumers market is that firm could open up the impression between the end-users and could further obtain different visibility among the golfers. Firms could not only open another doors for the business, but also reduce the risk of rely on the golf course. However, the cons of targeting consumers not only would jeopardize the relationship with golf courses, but also has no clear image and idea about the target customers. From a strategic point of view, this step is a double-edge sword....