FringeSport Case Study: Innovation, SWOT, PESTLE, and Strategy

This case study examines FringeSport, a company founded by Peter Keller, focusing on its innovative approaches in the sports equipment market, particularly within the CrossFit community. The analysis includes a situation assessment using SWOT, PESTLE, and Porter's Five Forces frameworks to understand the company's strengths, weaknesses, opportunities, and threats. It identifies FringeSport's sources of innovation, such as push and pull strategies, and categorizes these innovations into disruptive, manufacturing, product, service, and business model innovations. The study also provides recommendations for a small fitness business aiming to emulate FringeSport's success, emphasizing the importance of understanding market dynamics and leveraging innovative strategies. Desklib offers similar case studies and solved assignments for students seeking further insights.

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