Measuring the game of golf Submitted by Kavitha A Karthikeyan GolfLogix: Measuring the game of golf Brief overview about the company: GolfLogix Inc. was founded in May 1999 by two people with an innovative idea to the golf players. By 2000 it has 6 full time employees and after three years and $2 million in investments things were getting better for the company. GolfLogix has developed two different types of golf GPS technology in the form of handheld GPS receiver
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strategy is primarily focussed on ‘avid’ and ‘core’ golfers with the aim of increasing sales by 400K XCaddie units in the first year. Alternatives: 1. The first option for Golflogix is to implement a strategy to market the product more effectively through golf courses without worrying about direct consumers. This will give Golflogix a freedom to market their product in one segment while still maintaining the revenue growth even if there is no surge in demand at a consumer level. We believe the product
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GolfLogix has just launched the xCaddie‚ a GPS based device that aids golfers in estimating the distance to the next green. As things look up financially for the company with leases to golf courses and increasing awareness‚ the company ponders whether it wants to explore the retail channel. Through this case analysis‚ we explore the various paths before GolfLogix and recommend a course of action. Company & Product GolfLogix Inc.‚ a three year old company with just six employees‚ has introduced
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are lower‚ this variance is known as favourable. If sales are lower or costs are higher than expected‚ this variance is known as adverse. Firms spend money making their products. These are called costs. There are two types of costs involved in breakeven‚ these are variable costs and fixed costs. Variable costs are costs that change according to output. These costs change directly according to how many products are made. Fixed costs are costs that do not change‚ regardless of the number of goods
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CASE 1 GolfLogix - How does the xCaddie create value? Is it compelling? To start with I am going to talk briefly about GolfLogix and its different products. GolfLogix is a quite recent company which was founded in 1999 in Arizona (US). It was based on a simple concept‚ using the GPS to aid golfers to improve their game or to make it easier. For this reason‚ GolfLogix developed the xCaddie‚ a handheld GPS receiver. Nowadays‚ the company offers two different systems. The first one is
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equals the fixed cost. Breakeven analysis provides data for • profit planning • policy formulating and •decision making Break-even analysis may be based on: •historical data‚ •past operations‚ or •future sales and costs‚ Depending on management’s need and desire. •The break even analyses technique is used in various business decision making areas‚ as this help in knowing the minimum desired level to be achieved to avoid loss situation. •The Breakeven analysis is mostly used at
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Introduction:GolfLogix has developed a small‚ GPS-based device to help golfers track their play. With the fact that GolfLogix has two devices it is trying to sell: a distance-only device and a complete device‚ currently the company meets a problem that how best to distribute their devices: under the current leasing relationship with golf courses‚ whether should the company still need to market a direct-to-consumer version of the Distance Only xCaddie?Analysis:Retail channel: Advantages: 1)To increase
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Recommendation: Golflogix should sell the Distance-only and Complete-System through the golf courses channel and not in retail to golfers. However‚ Golflogix can reduce their pricing on the Complete-System and generate revenue from an additional stream of subscription from golfers to the Complete-system. This not only generates additional revenue but also increases demand for the system and builds pressure on the golf-courses to provide the infrastructure for it. Analysis: Market numbers suggest
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A breakeven analysis is used to determine how much sales your business needs to start making a profit. Every business wants and needs to make a profit but the only way you can determine if your product or service is profitable is by conducting a break-even analysis. This is a tool used by companies to understand how many products they have to sell in order for the company to break even. However‚ for you to understand how to come up with the breakeven analysis‚ you first need to understand the process
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• The breakeven analysis using the margin of safety is an invaluable tool to assess the impact of the risk of a change in revenue or costs. It is particularly useful for reviewing financial forecasts and business plans. This is illustrated as follows – Forecast 1 Forecast 2 Forecast 3 A Sales volume in units 20000 25000 25000 B Selling price per unit $100 $100 $100 C Forecast revenue A x C $2000000 $2500000 $2500000 D Variable cost per unit @$60 E Variable costs A x D $ 1200000 $1500000 $1500000
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