GOLFLOGIX: CASE

CRITIQUE
Kevin Barnes
Mackensey Kelm
Zhi Lor

MBA 629 Marketing Management

Critique of Original Presenter’s
Decision
 Team 2’s 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.
 Ifthe 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 2’s 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
 inaddition 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/news-
releases.asp?k=AUSTRALIA
 http://www.bizjournals.com/phoenix/stories/2002/0
8/05/newscolumn5.html?page=all
 http://www.golflogix.com/NewsFiles/10ecb73e-
d61f-401f-9991-80ce8d239493.html
 http://www.golfgps.com/latest-
news.asp?k=HARDWIRE
 http://www.golfgps.com/news-
releases.asp?k=SOFTWARE
 http://www.golfgps.com/news-
releases.asp?k=USGARA
Works Cited
 http://www.golfgps.com/latest-
news.asp?k=ENTERS
 http://www.golfgps.com/news-
releases.asp?k=INCREASE
 http://www.worldgolf.com/newswire/browse/13434
-GolfLogix-GPS-8-quickly-gaining-acclaim-from-
golfers-worldwide - GolfLogix GPS-8
 http://www.worldgolf.com/newswire/browse/62564
-GolfLogix-Offers-FREE-Golf-Scorecard-Stat-
Tracking-App-Membership-iPhone
 http://www.worldgolf.com/newswire/browse/63827
-GolfLogix-Launches-New-Website-1-Selling-Golf-
GPS-App-Access-FREE-Download-Easier
Works Cited
 http://www.worldgolf.com/newswire/browse/63982-GolfLogix-
Creates-Free-Online-Golf-Community-Thousands-Golfers-Joining-
Daily
 http://www.worldgolf.com/newswire/browse/70743-GolfLogix-
Surpasses-30000-Courses-Mapped-Precise-GPS-Technology
 http://www.worldgolf.com/newswire/browse/73537-GolfLogix-
Launches-%E2%80%98-Pro-Shop-Powered-
Golfsmith%E2%80%99-Bringing-Exclusive-Product-Offers-Righ
 http://www.worldgolf.com/newswire/browse/73984-GolfLogix-
World%E2%80%99s-No-1-Golf-App-Surpasses-2-Million-Active-
Members
 http://www.worldgolf.com/newswire/browse/74638-GolfLogix-
Integrates-247-GolfNow-Tee-Time-Booking-World%E2%80%99s-
No-1-Golf-GPS-App
 http://www.worldgolf.com/newswire/browse/84918-GolfLogix-
World%E2%80%99s-No-1-Golf-App-Surpasses-3-Million-Member-
Milestone