Business and Creative Wealth

This document discusses FringeSports, a company that provides home delivery of products related to weightlifting, cross fit, and cardio machinery. It covers the situation analysis of the company, including SWOT, PESTLE, and Porter Five Forces analyses. It also talks about the sources of innovation, such as push and pull strategy, category of innovations, and FringeSports sources of innovation. The document concludes with recommendations for small businesses.

RUNNING HEAD: Business and CreativeWealth 0
FRINGSPORTS
Business and Creative Wealth
(Student name)
1/20/2019

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Table of Contents
1. Introduction.........................................................................................................................2
2. Situation Analysis...............................................................................................................3
2.1. SWOT Analysis...........................................................................................................3
2.2. PESTLE analysis.........................................................................................................5
2.3. Porter Five Forces Analysis.........................................................................................7
3. Sources of Innovation.........................................................................................................8
3.1. Push and Pull Strategy ...............................................................................................8
3.2. Category of Innovations............................................................................................10
3.3. FringeSports Sources of Innovation..........................................................................11
3.4. Other Examples of Innovations.................................................................................12
4. Recommendations to Small Business...............................................................................14
4.1. Justification according to the case study.......................................................................16
5. Conclusion........................................................................................................................16
6. References.........................................................................................................................18

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1. Introduction
Peter Keller has introduced one of the new concepts in sports which are Fringe sports. The
Fringe Sports provides home delivery of the products related to all kinds i.e. weightlifting,
cross fit and cardio machinery. Peter Keller is one of the most renowned business tycoons.
He has vast experience in cross fit society. He had introduced the concept of FringeSports in
year 2010; he played an important role in establishing this brand. It deals in satisfying the
consumers by evaluating their needs and correct evaluation of the goods such as Crossfit for
them. Peter Keller with his experience determined the position of such market and it helped
him to deals his consumers accordingly. Peter Keller always focuses on the innovative
products which is designed or modified according to the consumers. FringeSports has worked
for different segments of the consumers which helped them to capture the market in
successful manner. By providing innovation to its products it also helps to provide innovative
offers to its customers by online and offline methods or techniques, also it gives offer for
limited time which helps the consumers to take benefits in short time. Peter Keller focuses on
the Gym owners for selling their products by providing them schemes and offers which are
lucrative enough which helps them to wide spread the range and horizon of their products.
Peter Keller has circulated free rings to the gym owner which helps them in creating a bond
and repo building. It has provided mouth publicity to its products which indeed increased the
goodwill for the company. The Gym owners were also excited about the offers which
company is bringing in as customers love the offers which company is offering. It gave
tremendous amount of exposure to Peter Keller which helps him to know what to sell and
what not to. Peter Keller also got to know that he didn’t received much response form he gym
owners who he had circulated the free rings instead they were increasing the disappointment
for Peter Keller. In below discussion we would be seeing the main concerns/Issues faced by

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Peter Keller in his company and provide the suggested Innovative technique to enhance the
scope of FringeSports which will enable the company to capture more market share then
before.
2. Situation Analysis
FringeSports was founded in the year 2010 by Mr. Peter Keller and Alex Keller, the two were
brothers originated from Texas with a Zeal to create such equipments which helps the
customers in making most workout with minimum efforts. The tools and technique used by
FringeSports is such great that customers can build up strength while they are sitting at their
homes. FringeSports when introduced in the market was very new concepts which gave more
scope in spreading the things as compared to the competition. Fringesports used various
strategies and offers which help in building the reputation of the company. Although, setting
up of business is never easy and this is also the same case, company has faced couple of
issues/concerns during establishment. These Issues would be taken care of by certain tools
such as SWOT, PEST and Porter five analyses (FringeSports, 2018).
2.1. SWOT Analysis
(Sources: Finance New Mexico, 2017)
Strength

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 The core Power of FringeSports is in their free enterprise which cater in applying the
techniques and strategies in most efficient manner.
 The pricing of the products was competitive enough which gave them upper hand
then competition.
 The strategies introduced by the company was such innovative manner that it become
the one of leading company in short time
Weaknesses
 Inventory management was of the key issues which company was facing. They were
missing on the technique which can trace their stock effectively.
 They have the most costly shipping management from the competition.
 Petter Keller also had differences in between products that are available in store
compared to online sales figures.
Opportunities
 Consumers in UK are dedicated in healthy physique which gave them motivation to
join gym and use the tools and equipments accordingly which gave them the
opportunity to reach out the consumers in efficient manner.
 Due to Government support to such industry helps the company to grow their
business in Europe.
Threat
 The Market of Sports is huge and competition is stiff which a challenging situation is
for the company and it has led to various monitory aspects
 Due to Boom and recession in the market loyalty of consumers is not steady which
led to price differentiation (McDONALD, 2016)

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2.2. PESTLE analysis
(Sources: MindMap, 2018)
Political
The Government is in support for healthy lifestyle which enhances the scope of the business
in UK. It is governed by West Minister who is leading political authority on the health
business opportunities in UK. The government is bit worries for the taxes and buy and sell
limitations.
Economic Factor
In comparison to other countries, unemployment rate in UK is very high which impacts the
purchasing parity of the customers to a great extent. The customers can be able to spend less
due to their low income. Hence the level of investment that company is doing can directly
impact the gross profit margins to a great extent.
Social Factors

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Both males and females are very concerned for their health. There are high demands of the
training and development regarding fitness. Every age group is concerned for their health
hence the demand of the products is high.
Technological
It plays a critical role in the business where in fitness is prime focus as companies need to
regularly evaluate the need for up gradation hence increase the cost factor for the companies.
Legal
It plays a vital role in health fitness as there are certain rules regulations and restrictions
which should be followed to have a standard products and approaches. The quality of the
products is also important.
Environmental
It is one of the factors which cannot be ignored as we all live in healthy environment hence
products should be designed in such a manner that it does not impact the environment instead
it keeps the environment healthy and safe. Hence environment Law should be follwed to the
core (Boniface, 2017).

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2.3. Porter Five Forces Analysis
(Sources: Jurevicius, 2013)
New Entrants Threat
The entrance barriers in the fitness industry are quiet low that attract maximum companies
towards such business. There is fast growth of such industry that increase trhe profit margin
of the company in effective and efficient manner.
Buyers Bargaining Power
The bargaining power of the consumers are high in the market due to the reason , the
companies are offer similar products or services to the consumers that provie an option to the
consumers to switch to any company.
Suppliers Bargaining Power
The bargain influence of the supplier is quiet low because there are high competition among
the suppliers in the UK that provide an option to the retailers to bargain with their suppliers in
effective and efficient manner.

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Substitutes Threat
The menace of substitute in the business is low due to the reason there are restricted
organizations in the country UK that provide other services than fitness. The strong substitute
of fitness business is not available in the market that gives opportunities to the company to
receive profit with high margin.
Environment of Rivalry
The marketplace of fitness is extremely cut-throat due to the low barriers in the entry of new
companies in the market. The major well-known brands are David, Total Fitness, Lloyds as
well as La Fitness. They are highly recognized and trusted in the market that increases the
level of competition in the market (Prasetyo and Lo, 2016).
3. Sources of Innovation
3.1. Push and Pull Strategy
Push Strategy
The push strategy is one of the effective promotional strategy that are majorly used by the
companies to generate the demand for their products or services in the market through using
variety of tools of promotion. The companies approach their consumers through promoting
their product by offering discounts and other offers in effective manner. One of the leading
company FringeSports that worn push approach
in efficient way as company has dispersed
gymnastic rings at free of cost to the gym

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vendor with the hope that they are the chief customers that can purchase their merchandise in
mount of bulk.
Pull Strategy
The pull strategy is the approach that pulls the customers near to their goods or services. Such
strategy helps in creating ongoing relationship or bond with the brands in more effective
manner. The company majorly pull their consumers through advertisement in newspaper,
social media or any other platform to construct the demand for specific products or services.
One of the company FringeSports also used that approach as they target their consumer’s
thor8ugh social media and YouTube that enhance the demand of their products in effective
manner (Singla, Ahuja and Sethi, 2017).
(Source: Research Gate, 2018)

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3.2. Category of Innovations
(Source: Iamyourcoach, 2018)
Innovation of Disruptive
It is one the novelty that includes the usage of fine equipment or process in the recent market
of business.
Innovation in Manufacturing
It is the type of novelty in which the innovative idea applies on the process of manufacturing
of their production to enhance the quality and quantity in effective manner.
Innovation in Product
The innovation in product can lead to the product innovation the product can be raw material
merchandise or services of intangible which is the requirements of the customers as well as
obtain by them (Bessant and Tidd, 2007).
Innovation in Service

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The service innovation can be define as a novel or substantial changes in the notion of
services, delivery system of services, buyer interface that help in attracting utmost customers
in effective manner.
Innovation in Business Model
Business model is the manner trough which the company work and earn money. It consist of
innovative strategies, marketing, supply chain as well as creation of value (Omri, Frikha and
Bouraoui, 2016).
3.3. FringeSports Sources of Innovation
The company has used different strategies in their business such as innovation in business
model as well as innovation in marketing. They have used different sources in their business
these are explained in below points:
 The company use the platform of social site to target their consumers. They uploaded
the videos in social networking sites such as YouTube, Facebook in which they
explain the method of using their product in accurate manner. It increases awareness
about the product among the consumers. The company used the experience and
exposures of their employees in such process in such manner, the employees
participate in the growth and success of FringeSports. The participation of employees
assists the company in competing such market of competition in more effective and
efficient manner.
 One of the effective sources used by the company is analysing their competitors. The
copany has adopted proactive approach in their business for competing their
competitors. They used testing strategy in their business in which they check product
of competitors and compare with their products. Through such process they would

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able to find the deviations in their products and able to work accordingly. With the
help of such process the company would able to enhance their quality of product in
ore innovative manner.
 The company has also used the innovative source to target their consumers they have
adopted the strategy of “Brick and Click” in which they target their consumers
through the source of online and offline. Through such source the company would
able to cover the market in more effective and efficient manner. The company able to
enhance their sale up to 60% that increase their existence in the market.
 The company has also taken feedback from their consumers to enhance their
satisfaction level and able to target their consumers in more effective manner. They
have received feedback from consumers through mail.
3.4. Other Examples of Innovations
 The iPhone of Apple is one of the innovative products in the market of mobile
phones. The company is based on US and one of the leading companies at global level
due to their innovative ideas and strategies. The iPhone was invented through the

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increase and movement of technology that takes years in inventing by phones of Plan
Treo as well as assistants of personal digital.
 Tesco is one of the leading companies in UK. They have adopted the strategy of
“Bricks and Click” to target maximum consumers in the market. They have analysed
that the market are turned to online that made an opportunity to them to expand their
business through online. Therefore, therefore, the company operates their business
though the source of online as well as offline
 One of the Australian based companies BlueScope has applied variety of marketing
strategies in their business to enhance their sales. To increase their sales, the company
has adopted effective promotional strategy in which they promote their goods as well
as services through the platform of social media. It helped the company to reach out
maximum consumers in limited period of time. The company build healthy
relationship with the base of clients to increase their level of consumers in more
effective manner (Souto, 2015).
 One of the fast food chains in Singapore, VeganBurg has managed their sales through
the source of social media. They promote their products on Twitter as well as
Instagram rather than simply marketing their foods (Freel, 2016).
 Samsung lead as a innovative company in the market of digital. The company is based
on South Korea. They achieve success in the market with the help of the effective
participation of their employees. The staffs of Samsung is creative as well as
innovative that help the company to lead in the market in innovative manner. Thus,
company has supported their employees by providing them various kinds of facilities
that help in creating innovative ideas in their mind.

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4. Recommendations to Small Business
Generally, the small companies’ dreams to attain achievement and growth in the competitive
market as like big companies. Various steps have been taken by them but due to some
reasons they lag that increase dissatisfaction among them. Therefore, North Face in Glasgow
is one of the small companies and wanted to nurture in the marketplace as like FringeSports.
They came for some suggestion as well as strategies that they need to adopt to grow in such
market. These strategies are explained in below points
Approach of Reactive
The reactive strategies are majorly used by the companies who are looking for low-risk
opportunities and mainly focus on the operations. It is the strategy in which the company
adopt and apply the existing and proven innovative strategies of other leading companies as
well as use entirely incremental innovations. FringeSports has also used such strategy in their
business, as they have engaged the replica of “Brick and Click” as of the foremost companies
in the market and develop their trade in that manner. It helps the business to enhance their
sale to 60% that would help them in leading the market. Therefore, North Face can adopt
such strategies in their business to grow without risk (Hassan, Nadzim and Shiratuddin,
2015).
Lenience for risk and failure
It is essential for the entrepreneur to have high tolerance level in the business for bearing risk
and failure. The business is full of uncertainty therefore, the innovative ideas can be
successful or not. The innovation includes the risk factors in which the entrepreneur would
not able to know that their pioneering idea would value it or not. Thus, the lenience level of
risk as well as failure plays an essential position in the growth of the business. FringeSports

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has also great tolerance level of risk and failure that made them succeed in the market. Their
strategy of distribution free sample did not give them worth but they would able to mould
their strategies. Thus, North Face should also have high tolerance level of risk and failure to
achieve in the market (Armisen and Majchrzak, 2015).
Implore Feedback of Consumers
Implore the subsequent criticism from the customers during the platform of relaxed
discussion, social media and customer survey would help in leading the company. It helps the
company to evolve the products or services according to the feedback of the consumers that
increase level of satisfaction among them. FringeSports has also engaged the criticism from
their customers after dispensing free samples to their customers. It helps them to rid from the
deviations faced by them. Therefore, every company should use such strategy to satisfying
their consumers in more effective and efficient manner (McDowell, Harris and Geho, 2016).
Analysing competitors
From growing in the market, the corporation should scrutinize the tactics and performance of
their rivals in effective manner (Omri, Frikha and Bouraoui, 2015). That helps the company
to compare their strategies with their competitors. FringeSports has also adopted such
strategies. They analyse the quality and product of their competitors and compare them with
their products. It helps the company to find any deviation and can able to work on that.
Therefore, North Face should analyse their competitor’s strategy to compete in the
competitive market (Rudenko et al., 2015).
Invest in employees
The investment in the employees is one of the effective tools that are mostly used by the
leading companies. The workforce is the essential assets of the corporation that would help

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the companies in attaining embattled goal in more effective manner (Bammens, Notelaers
and Van Gils, 2015). FringeSports has exploited their employee as resources for the growth
of their business. They mostly used the experience and skill of their workers that help the
corporation to increase their recital in the industry. Thus, North Face can use such strategy to
grow their small business in competitive market in more effective and efficient manner (Tidd
and Bessant, 2014).
4.1. Justification according to the case study
According to the above analysis of the strategies, North Face can use such innovative
strategies in their business just like FringeSports has used such strategies. The company
would able to grow in such competitive market as like FringeSports. The FringeSports has
used variety of innovative strategies to grown in the market. They are uncommon in nature
that is ignored by the businesses. Therefore, they should focus on their strategies in effective
manner to grow in the competitive market.
5. Conclusion
It can be concluded from the above analysis that the entrepreneurship plays a very important
role in the business to achieve targeted goal and growth in the market. FringeSports was
founded in 2010 by Alex Keller & Peter. Keller has already entrepreneurship skill that helps
the company to rise in the market. There are certain strategies adopted by the company that
made them more innovative in market. However, there are certain weakness of the company
such as the company would not able to track their inventory as well as their cost of products
are high that create an issue for the company. Still company cope up from there challenges
and made their company more successful in the market. Therefore, every company should

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adopted such strategies that would also help them to achieve success like FringeSports in the
market in more effective manner

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6. References
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innovation contests. Business Horizons, 58(4), pp.389-399.
Bammens, Y., Notelaers, G. and Van Gils, A. (2015) Implications of family business
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FringeSports. (2018) About Us [Online]. Retrieved from: https://www.fringesport.com/
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