Question Completion Status: A company called Flex Information Systems (FIS) comes with a unique business model. It will sell multi-exercise machines that have sensors in them. These are meant to be installed in the buyer's home. These machines are workstations that combine multiple exercises - such as strength training stretching treadmills etc. The machines come with free trackers that buyers can wear when they exercise. FIS has also partnered with companies that track other key lifestyle metrics such as sleep patterns, activity levels and even nutrition based on lot mechanisms installed at home. FIS will install these machines for a one time fee plus a monthly subscription fee for usage and separate fees for using the inteligence - analytics - that comes out of these machines. Based on the above which of the following statements below is most accurate? of FIS can change its business model and compete head on with the fitness clubs and gyms using their business model, it will be able to succeed over a period of time. However, their current business model makes it unlikely that they will succeed in disrupting the fitness club and gym Industry. FIS's product-service bundle has a low marginal cost and therefore, to be a true disruptor of the fitness club and gym industry it must do versioning and price discrimination. FIS is a potential disruptor of the fitness club and gym industry. Whether it succeeds or not depends on how quickly the incumbents in the fitness club and gym industry can respond with a very similar business model with low marginal cost product-service bundles of their own. FIS is a potential disruptor of the fitness club and gym industry. Currently it may segment the market into those that can afford its products and services and value them sufficiently and those that do not. Its lot based solutions may appeal only to a smaller segment of the larger market in the short term FIS has succeeded in creating a product-service bundle that has Network Effects associated with it. As more and more customers (buyers)join this network it will become more valuable and the fitness club and gym industry's networks will become less valuable. FIS is a potential disruptor of the fitness club and gym industry and is sure to succeed in disrupting this industry over time