Golflogix Analysis

The main problem with GolfLogix was introducing their GPS "xCaddie" to golf courses exclusively or market the products to the general public. A common problem when on a golf course is determining the distance from the ball to the green. The "xCaddie" could calculate the distance with the click of a button to within feet. This accuracy could greatly increase the accuracy and effectiveness of club choice, thus lowering a golfers score. The "xCaddie" would be sold to golf courses and then rented out to golfers for a small fee to increase the golf experience. With innovation come obstacles. Many golf courses already have a form of range finding while on the course. Distance markers are located periodically in the center of the fairway. Usually at 200, 150 and 100 yards from the center of the green. What the "xCaddie" would do is take away the estimation of the distances between the markers or off to either side. Creating a more precise game.

GolfLogix has created two options to the "xCaddie", the basic model that indicates the distance to the green from where the ball is located. This model can be leased to golf courses for $1500 for 60 units.

The second model that Golflogix has created is a more deluxe unit. This unit will tell distance to the green along with keep progress around the course and mark each shot that the golfer takes. Once the round is over the golfer can return to the pro shop and print off his results and save them on an online database on the GolfLogix webpage. This would allow the golfer to track his progress easier and help improve his play.

The company had a good product to offer and it was clear what they were trying to do. I think they need to choose one market though. Either market direct to consumers or solely to golf courses. With the technology, costs and time that is required to map out a course I think that GolfLogix should stay with golf courses. This is how the "xCaddie" was designed, to know one course and provide detailed distances of that course. The costs for GolfLogix to map out every course and install the data onto each unit that is sold would be incredible. For the company to map out every course in America with the "Distance Only" unit would be $8,500,000 and for the "Deluxe" unit the cost would be $34,000,000 roughly. The cost to market the "xCaddie" would be to great for this company I believe.

17,000 golf courses in America

$500 to map out a golf course for "Distance Only"

$2000 to map out a golf course for "Deluxe"

(17,000 x $500 = $8,500,000)

(17,000 x $2000 = $34,000,000)

The environment that GolfLogix would have to deal with is completely different with the route that they would have to choose in order to market this product. If they were to stay with golf courses they would be able to meet the needs of many more environmental factors. They could focus on certain locations and design the product to fit the certain demographics of that location. For example in Arizona the unit could give you temperatures as well as the designated features. Or it could offer technological advances say for a course in Hawaii, which offers golf to many tourists possibly from international locations that do not speak English. The unit could have different language settings. Also, economics will play a big role in the sales of the product. If golf courses offered the units with the green fees more people could access and use them. If they were marketed publicly the costs to produce them would increase the unit price and certain lower economic classes might not be able to use them.

The treat of new entrants into the market would be constant with technology increasing and prices declining. GolfLogix will need to stay ahead of the race or at least stay with it.

Substitutes are in great accessibility for many golfers. The tried and tested method of just relying on course markers is free and accurate. Other GPS units already