Review the principles of competitive advantage in Figure 3-12. Which types of competitive advantage has BOSU used to defeat copycat products?
Bosu has successfully used the principles of product enhancement, customer lock-in, raising entry barriers, and alliances to defeat copycat products
What role did information systems play in your answer to question 1?
Information systems were very important. The database of trainer data was used extensively to help create and maintain the close relationship Fitness Quest desired with their trainers.
What additional information systems could Fitness Quest develop to create barriers to entry to the competition and to lock in customers?
Fitness Quest could enhance its products through information systems. Bosu buyers could register for email-based newsletters. Bosu buyers could participate in chat groups about how they like and use their Bosu trainers. Fitness instructors could share ideas about Bosu-based classes via a special trainer blog. Bosu buyers could track and monitor their weight loss, and fitness goals on the Web site and share progress with others. These features would help distinguish Bosu from copycats. The systems described here would also help to strengthen ties to customers.
In 2004, Fitness Quest had alliances with trainers and their competitor had alliances with major retailers. Thus, both companies were competing on the basis of their alliances. Why do you think Fitness Quest won this competition? To what extent did their success leveraging relationships with trainers depend on information systems? On other factors?
Through trainers, Bosu was able to differentiate. Its focus was on fitness trainers within the industry. The trainers made it so each customer would have a relationship with the product. This worked because the trainers believed the Bosu was the best product for giving customer value. The trainer believed this because they used the product themselves,...
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