If you could choose one of the two channels, which would you choose – courses or

retail? Courses. One reason is that Golflogix has built a strong relationship with golf
courses across the country, and changing the strategy to go through retail channels
might make these relations get worse, having as a consequence a loss in the
company’s revenue, due to which the courses can feel disappointed and move to
other competitors. As we see in the case “targeting consumers directly might
jeopardise relationships with golf courses that the firm had worked hard to establish”.

Golflogix systems (Distance Only and Complete System), through the xCaddies
provide golf courses an additional revenue because they help to improve the overall
golfing experience at its courses, which is exactly what players want to satisfy. Golf
courses would not receive these additional streams of revenue if golfers brought
their own GPS systems . Besides all, I think it is more difficult to reach success
through the retail channels, because most golfers aren’t willing to pay between $200
and $1,000 for a personal GPS system when they can simply play a golf course
offering a GPS system for little or no additional charge. Moreover, we have to take
into account that GolfLogix is a four-year-old company, so in case that the product
fails when it is introduced directly to the final consumers, the company won’t might
be able to handle this big loss because it is unlikely it has a large cash reserve due
to its age and maybe its initial investment (what means that probably the company
still has a financial debt).

– Given the option of selling through both channels, what would you do? Taking into
account that nowadays we don’t have a really good developed technology and it’s
very expensive at the same time, I would only sell the devices to the courses and I
would wait for the decreasing of the technology and production costs, as we can see
the success of our product and the progress of the demand.