imen 301 - technology management and strategy - put emphasis on dominant design

IMEN 301 - Technology Management and Strategy

- Put emphasis on Dominant design

IMEN 301 - Technology Management and Strategy

- Put emphasis on Dominant design

Contents

1. Screen Golf Market2. About GOLFZON3. Motivation of innovation4. Pattern of innovation5. Dominant Design6. How to continue Design Dominance7. Suggestion

Screen Golf Market

Recently, market of screen golf has been increased dramatically in Korea.

2005 2006 2007 2008 2009 2010 2011 20120

1000

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8000

The number of Screen Golf Room

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Patents about Screen Golf

KoreanForeign

Application Year

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um

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applicati

on

Market of Screen Golf

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et

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Screen Golf Market

Recently, market of screen golf has been increased dramatically in Korea.

GOLFZON

2000. Golfzon was founded 2002. Golfzon-P, P+ model was released 2003. Golfzon Software 2003 Ver 3.X was revealed Golfzon was selected as Inno-Biz company 2004. Golfzon-S model was released 2005. Golfzon signed a partnership with PGA Germany

Golfzon Software 2005 ver 5.x was released 2006. Golfzon established R&D center 2007. Golfzon Live “ 나스모” service was launched 2008. Golfzon-N model was released

Golfzon reached 100 billion won revenue 2009. Golfzon Japan CO.,LTD. was founded

Golfzon was awarded grand prize as 2009 Korean Invention and Patent Contest and etc.

2010. Golfzon was awarded grand prize of IMI Management 2011. Golfzon was listed in Kosdaq 2012. Golfzon established a Taiwan corporation

• Revenue of Golfzon has been increased dramatically since 2002.

• Since Golfzon revealed finance informa-tion by listing in Kosdaq, profit has been also increased.

• Rate of liability per asset has been de-creased. It indicates Golfzon has been safe more and more.

• Now, Golfzon has shops over 4,000.

2002 2003 2004 2005 2006 20070

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Sales of Golfzon(billion won)

GOLFZON

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Sales of Golfzon for last 5 years

Sales Profit

(billion won)

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Liability and Asset

Liability Asset

(billion won)

Motivation of Innovation

•New knowledge - After 2000, by developing of VR technology, people could play screen golf more realistic.• 2002, screen golf system was developed.• 2003, technology of screen sensor was developed first in Korea.• 2005, motion replay technology was applied.

Patterns of Innovation

• Unification • It is hard to play golf, because of high price, weather, time, etc.• By using Virtual Reality(or IT), able to play golf easily.• Screen golf can become playing sport whoever can do.

Dominant Design

Market Share in Korea

GolfZon

Albatross

X-Golf

Family Golf

Market Share in World

GolfZonOthers

84% 52%

Golfzon: They early constructed their database system well, So managing system and On-line lesson, Reality of field are better than any other screen golf. Also events are most vari-ous. Game, through networking system, makes more fun. They expanded their market share to golf café or golf room.

Albatross: Feeling of Putting is best. And Moving footholds are most strong point. Although they are one of first movers, online system was adopted too late

Family Golf: Control of system is easier than any other screen golf, and composition of screen is simplest, but they seek interest too much. So, when people play screen golf of Family Golf, they feel ‘this is game, not golf’.

X-Golf: Generally, system of X-Golf is faultlessness, but they are last mover. They entered the market too late, so people think ‘Screen golf is Golfzon or Albatross’.

Golfzon & Competitors

Recently, Golfzon is dominating screen golf market

First mover

Technol-ogy

Golf Network

Management Customer

Business Expansion

5 Factor

Dominant Design

How Golfzon excels competi-tors to be the dominant de-sign?

Dominant Design

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

GOLFZON is First Mover in screen golf market in Korea.

GOLFZON was founded in 2000.

“Whoever can enjoy golf!”

Popularization of golf Expansion the golf base

Securing Customers

Newness and Curiosity

Dominant DesignGOLFZON’s Technology takes the lead in screen golf market.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

GOLFZON concentrates on accuracy, diversity, and reality.

Accuracy

High tech T-sensor: Exquisiteness and deli-cateness of sensor un-derstand information of pitch accurately.

GOLZON Simulator

Reinforced analysis of batted ball and advices helps rounding plan and strategy of hole.

Accurate data analysis makes users be able to do personal practices.



Diversity

Various holes: Users can choose hole that they want

GOLZON Simulator

Various modes: Users can choose mode that they want like mis-sion mode, practice mode, short game mode and so on.

Various analysis: Users can improve their ability based on result of analysis about driving distance, pitch and so on.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor



GOLZON Simulator

Swing plate and grass mat: Swing plate can ex-press slope of spot and there are 3 types mat like fairway, rough and bunker

Reality

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

Real Course

Golfzon Course

Realistic Display: GOLFZON took a pictures domestic golf park using plane and the company reenact that place realistically

Dominant DesignGOLFZON is forming various golf network.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

CEO of GOLFZON introduce himself.

“GOLFZON is not ‘system supplier’ but ‘golf network company’.”

In 2011, Sales of network service in GOLFZON is 16% of total sales.

Online Screen Golf Competition

GOLFZON Live Tournament(GLT) GOLFZON Moving Experiment Exhibition

GOLFZON concentrated on expansion of population of screen golf market

Lesson program MyT

Dominant DesignGOLFZON adopted online service for management customer.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

Customers can contact score, ranking and their swing motions for home-page easily

39%

19%17%

11%

10% 4%

Reason for Using Golfzon

Online ServiceGraphicSensorCompetitionEventsCourse



First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor


Customers can learn golf showing lesson video in online.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

Dominant DesignGOLFZON turn its gaze on the world market.

GOLFZON Simulator has been sold in 31 nation.

First move

r

Tech-nol-ogy

Golf Net-work

Man-age-ment Cus-

tomer

Busi-ness Ex-

pan-sion

5 Factor

2008 Golfzon Hongkong CO.,Ltd. was founded.2009 Golfzon Japan CO.,Ltd. was founded.2011 Golfzon China CO.,Ltd. was founded.Golfzon expands in Japanese market for ‘Golf Bar’ and Chinese market for ‘Golf Room’ with big screen.

GOLFZON plans to enter North Area market, because of cold weather.

Ratio of world market revenue is only 5%, but market share of world is over 50%.It means world market is small, but growth potential is higher.

How to continue design dominance?

Analysis- P5CFM (Porter’s Five Force Model)- SWOT & TOWS

Suggestion- Collaboration- Global Market

Degree of Existing Rivalry

Other screen golf companies.

Bargaining Power of Buyers (Customers)

Customer royalty.Brand image.

High Technology.

Bargaining Power of Suppliers

Screen golf Technology is a kind of IT. Supplier is less important than

other things.

Threat of Potential Entrants

Foreign companies and Other big com-

pany.

Threat of Substi-tutes

Substitutes of screen golf are field golf and indoor driving range. But these may not be

a threat.


P5CFM

Threat

Other rival companies’ aggres-sive marketing.

Economic recession.

Opportunity

Screen golf market is not satu-rated yet. Golfzon has chance of growth.

Many people are interested in screen golf and want to do play.

Global Market is a blue ocean.

Weakness

Screen golf is inexpensive, but it is pricy sports.

High R&D cost.

Strength

High Technology(Accurate putting system)

Rower price than field golf.

Golfzon is not far from residen-tial area.


SWOT

Turn-around

Diversification into other related system.

Defensive

Low price strategy.

Adjust

New services for grap-ping customers.

Collaboration with other device or software com-panies.

Offensive

Continuous R&D to de-velop more accurate & realistic screen golf sys-tem.

ThreatOpportunity

Str

engthW

eakn

ess


TOWS

GOLFZON has competing force to rival companies and Customers. Also it has good technology power. So we suggest collaboration with other com-panies and expansion to overseas market

Collaboration Strategy : Strategic Alliance

- 3D display system + Screen Golf


Suggestion

Suggestion

Expansion to global market

- Korean screen golf market is not saturated yet, but after some years, it must be stop growing. Investing to global market is required as soon as possible.

- Expansion to global market is good opportunity, but it is also risky. So collaboration with local company is good strategy.


imen 301 - technology management and strategy - put emphasis on dominant design

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