1.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
2.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.
3.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 newsletter
...s. 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.
4.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
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, and they were able to convey this to customers.
Having an information system is how fitness quest determined what their best competitive strategy would be. They were able to differentiate by building relationships and alliances with more than 10,000 professional trainers. They maintained the quality of their system by making sure the trainers succeed with their product.
Other factors that contributed to the success of Bosu were their commitment to quality and pricing. By ensuring high product quality, they satisfied the trainers and customer needs. By holding their price steady while the competition was cutting prices, they maintained their image and met their revenue requirements.
5.The case does not state all of the uses that Fitness Question makes of its trainer database. List five applications of that trainer database that would increase Fitness Quest’s competitive position.
FitnessQuest currently uses their database for email and postal correspondence, and well-received messages increases trainer registrations. Five other applications that could increase competitive advantage are:
1. Create features in the database (such as an exclusive members club) that will serve to lock trainers class participants into the product, make it so participants will be more inclined to maintain steady loyalty to FitnessQuest products.
2. The database could make use of cost reduction techniques such as finding and re-establishing or removing wasteful activities so trainers and suppliers can run more classes per day.
3. Provide data that allows trainers to mix classes and
create custom exercises.
4. Provide trainers with diagrams and videos that they can give to customers to help during classes.
5. Allows trainers to search for more options (outside sources) of training classes
6.Describe major differences between the BOSU product and the IndoRow product. Consider product use, product price, customer resistance, competition, competitive threats, and other factors related to market acceptance.
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