Start Point

Once upon a time there were two prosperous recreation centres in the city of Sportville. The special feature of Sportville is that the Bigbend River flows west to east right through the middle of the city. Furthermore there are no bridges, only a ferry, for inhabitants to cross from north to south.

Although the two recreation centres are only 2Km apart as the crow flies, they are separated by the Bigbend river.

The customers of Northpoint Recreation Centre are drawn from North Sportville. Equally, Southbank Recreation Centre enjoys a virtual monopoly on the southside. A river crossing by ferry takes 20 minutes from start to finish and this virtually assures that customers do not cross the river.

This situation continued to exist until one day the Sportville City Council acquired sufficient funds to build a bridge across the Bigbend River. It is now possible to travel by car or bus from Northpoint to Southbank in 9 minutes at normal city traffic speeds.

When each centre begins to receive visits from the customers of the other centre, the managers of both recreation centres realise that for the first time they are in direct competition. It is time for some serious thinking and planning!

If you were the manager of Northpoint Recreation Centre what would you do?
Create three-year membership plan
Give the centre a face lift
Under cut your customer's prices
Make an agreement with your competitor in south Sportsville
Get some advice from a friend