1-2 - Final Project Milestone 1

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Southern New Hampshire University *

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210

Subject

Information Systems

Date

Dec 6, 2023

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pdf

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2

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Running for Glory (RfG) is a running-based fitness store located in Seattle, Washington. The store has a long history in catering to running enthusiasts for over 40 years while maintaining a loyal and dedicated customer base. However, in recent times, the company faces many challenges and limitations. Situation Analysis RfG has not kept up with technological advances and lacks comprehensive data from its customers. RfG does not have information on customer demographics because the fitness store heavily relies on sales without having an interest for its customers. Without customer data, RfG is unable to analyze trends or develop strategies/tactics to make decisions to further increase revenue. RfG’s commitment to the niche market of running has endeared it to a dedicated customer base, thus limiting growth opportunities. One of the partners believes that RfG should expand to a suburban town to attract younger customers but this decision is solely based on instinct. Problem Identification The primary problem facing Running for Glory is the lack of access to comprehensive customer data and analytical capabilities. RfG lacks data on customer demographics, preferences, and behavior. This hinders their ability to understand their customer base, tailor their offerings, and provide personalized experiences. Without data-driven insights, hey risk making decisions based on intuition rather than market trends. The company's commitment to its running-centric focus has kept its existing customer base loyal. However, it may limit its growth potential as it fails to tap into emerging markets or respond to evolving customer preferences. RfG’s decision to expand to the suburbs to target younger customers can be considered a good
decision. However, without actual data, this decision is risky because there is no assurance that the target demographic is interested in the market in which RfG operates in. Business Processes Affected The lack of customer data hampers RfG's ability to design effective marketing campaigns, engage with customers on a personal level, and tailor promotions to individual preferences. RfG cannot develop comprehensive strategic plans for expansion, product assortment, or supplier relationships. This affects their ability to adapt to market changes and remain competitive. RfG relies on supplier records for inventory management. With limited insights into customer demand and preferences, they may struggle with optimizing their inventory and product selection. All major decisions, including the expansion to the suburbs, are being made without the benefit of data-driven analysis, increasing the risk of making suboptimal choices. Conclusion Running for Glory is facing significant challenges due to its lack of access to customer data and the resulting inability to make informed strategic decisions. To address these issues and position the company for sustainable growth, it is imperative that RfG invest in data collection, analysis, and technology upgrades. By leveraging customer insights, the company can better understand its market, adapt to changing customer preferences, and make strategic decisions with confidence. Hiring a consulting company to assist in this transformation is a crucial step toward unlocking RfG's full potential and ensuring its continued success in the competitive fitness retail industry.
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