BCOR 330 Simulation Chapter 2

Identify the industry forces that would affect GearOn. A. Bargaining power of suppliers___ B. Threat of substitutions___ C. Threat of new entrants___ D. Bargaining power of customers___ E. Existing Rivalries___

A. Many coaches are looking for work. B. People have many fitness options. C. There are many low cost gyms. D. Customers pay set fees at gyms. E. There are many national chains.

Now that you have examined the five competitive forces of the industry, you must choose a competitive strategy for GearOn. What do you choose? a. A gym with team sports programs for adults and children, and areas for both groups to exercise on their own. b. A gym that promises to be the best full-service gym in the country, with team sports, massages, and nutrition advice available. c. A gym with the promise of "Lowest Costs in the Nation!"

a. A gym with team sports programs for adults and children, and areas for both groups to exercise on their own.

Next Kelly asks you, "What kind of information system will GearOn need to track customer data?" What do you tell her? a. A very basic system that simply identifies whether or not the person is a member. b. A simple system that tracks membership, program enrollment, and participant progress. c. An elaborate system that tracks memberships, preferences, goals, and makes recommendations for other services the member may enjoy.

b. A simple system that tracks membership, program enrollment, and participant progress.

Kelly says that from your research into GearOn's competitive industry, you should have learned that the success of a company's value chain depends on marketing, sales, and service activities. Then she asks you, "What kind of employees will you choose to help maximize GearOn's value?" a. The lowest-cost employees b. Employees who will try to make GearOn fun and friendly c. Experienced employees who will know how to anticipate members' every need

b. Employees who will try to make GearOn fun and friendly

How do you begin your investigation? a. How do you begin your investigation? b. Examine the industry and then choose a competitive strategy. c. Assume that GearOn will use the same competitive strategy as GearUp, and move on to determine the new division's value chain structure.

b. Examine the industry and then choose a competitive strategy.

Kelly asks you to summarize the competitive strategy you chose. Using Porter's Four Competitive Strategies model, how do you answer? a. Industry-wide lowest cost b. Industry-wide differentiation c. Focus differentiation

c. Focus differentiation

Kelly smiles and asks you, "How can you use the information systems you have chosen to create a competitive advantage for GearOn?" a. Create a confusing customer interface and complicated forms to prevent members from quitting the gym. b. Use information about members' program enrollment to sell them sports equipment from GearUp. c. Use information about members' program enrollment to suggest other programs they might enjoy and try to create a "team feeling."

c. Use information about members' program enrollment to suggest other programs they might enjoy and try to create a "team feeling."