...CASE 3: COMPETITION IN THE GOLF EQUIPMENT INDUSTRY 2009 Background There is no exact date as to when the game of Golf came into existence. The first known reference of golf was made in 1452. Golf has come into its own during the early 1950’s and 1960’s. The game was televised in America, which ultimately meant that more and more people would become exposed to the game. During the late 1990’s.it was estimated that more than 27 million Americans were playing golf. However, between 1998 and 2008, the number of people playing golf had declined from 27.5 million to 25.6 million players. The industry is currently in a state of decline. The recent recession and the onset of regulations from the USGA and the Royal and Ancient society have had a negative impact on the golf equipment industry. 1. The industry is defined by endorsements, branding, technological advances and regulation. - Endorsements – Leading golf brands have always struck endorsement deals with leading golf players. The value of the endorsements has increased significantly since 2000. During the 1990’s top players were receiving between $250 000 - $400 000. By 2007, the top golfers were earning at least $4 million. Tiger Woods has earned more than $80 Million in endorsements in 2009 alone. - Branding – Golf is characterized by brands such as Nike, Callaway, Titleist, TaylorMade, Cobra, Ping, and so forth. - Technological advances – Golf clubs today can hit a golf ball approximately 265m...
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...Competition in the Golf Equipment Industry in 2009 Karina Diamond 2012 Strategic Management 3/14/2012 Competition in the Golf Equipment Industry in 2009 Karina Diamond 2012 Strategic Management 3/14/2012 Table of Contents Question One 2 * Details of the characteristics of the golf equipment industry Question Two 4 * Includes Michael Porter’s Five Forces Model Question Three 7 * Discussed the competitive weapons used by rivals Question Four 9 * Looks at the drivers of change within the industry Question Five 11 * Key success factors Question Six 13 * Financial Statement Analysis Question Seven 15 * Recommendations Conclusion 18 Appendices 19 * Includes a breakdown of Financial Analysis References 22 What are the defining characteristics of the golf equipment industry? How would you characterise the state of the industry? The sport of golf has a long and regal history. Televised tournaments in the fifties and sixties in America meant that more people became interested in the game. The golf equipment industry in 2009 is in the middle of a crisis with the number of players stalling and the sales of equipment declining since 2006. The industry is defined by endorsements, branding, technological advances and regulation. The industry is currently in a state of decline. The recent recession and the...
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...Strategic Report for The Callaway Golf Company Innovation through Collaboration Scott Damassa Amy MacKinnon Alisher Saydalikhodjayev April 14, 2007 Harkness Consulting Table of Contents Executive Summary ................................................... 3 Company Background ................................................ 5 Competitive Analysis.................................................. 7 Internal Rivalry ................................................................ 8 Entry .............................................................................. 12 Substitutes & Complements ........................................... 13 Buyer & Supplier Power ................................................. 14 SWOT Analysis ..........................................................15 Strengths ....................................................................... 15 Weaknesses ................................................................... 15 Opportunities ................................................................. 16 Threats........................................................................... 16 Financial Analysis .....................................................16 Strategic Issues & Recommendations .......................21 References…………………………………………………………25 Harkness Consulting 2 Executive Summary Harkness Consulting has been asked by Callaway Golf to assess its strategic market position and to make recommendations for improving...
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...Entertainment~ 1940s movies NOW ARE VERY dramatic and nice to watch with the family. Bert Lahr from the movie “the wizard of oz” played the lion without courage. I found that funny because lions are courageous, brave, and strong. Billie burke, also a wizard of oz character, played the good witch of the north. She helped Dorothy get to the wizard so she can get back to her home in Kansas. Judy garland, the character of Dorothy, was a young girl who cared much about her dog toto. Once when a twister hit they got stuck into the wonderful and awkward world of oz. 1940s music now is so soothing and very enjoyable. Louis Armstrong was a jazz musician who played jazz music on his trumpet. He was well known for his distinctive singing voice. Cab calloway was a jazz scatter of the 1940s. he was referred to as the “hi de ho” guy of the 1940s. dizzy Gillespie was known for his puffy cheeks. But he was in the music business as a jazz trumpeter or trumpet player. ~1940s fashion~ 1940s fashion now Is so Fashionable And In Style. We Have all you can think of hats that will suit your taste, coats that will blow you away, and shoes that will blow your mind. Our fashion coats are made of what you can think of wool, fox fur, leather, etc. now our hats are so comfortable and relaxing to you heads, you will enjoy them some much that you will forget you were even wearing them. Finally, the important things are the shoes. These shoes are so beautiful, sassy, and comfortable. These shoes will...
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...one beer to the prohibition crowd. The Cotton Club was a “Whites-only” foundation. Even in the heart of Harlem, the race line divided the black performers from the white patrons. Inside the Cotton Club, African themes were exploited and only "jungle music" was played to an all white audience. Duke Ellington put together one of the most talented jazz bands ever to walk on stage to play for the patrons of The Cotton Club six nights a week. As the twenties went on, Ellington would continue his huge success at The Cotton Club into many classic recordings, cementing Duke Ellington to go down in history as one of the great jazz musicians and entertainers ever. In 1931, Ellington left his thrown at the cotton club to the bandleader Cab Calloway. Although Calloway wasn't as talented he did have a distinct style called scat singing. Scat Singing is singing in which the singer substitutes improvised nonsense syllables for the words of a song. Which...
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...The Blues Brothers Hero Cycle In The movie "The Blues Brothers" (1980), the main character Joliet Jake Blues travels the hero's journey along with his brother Elwood, to save the orphanage in which they grew up. They face many obstacles along this journey and receive help from many different sources. The call for the journey comes after Joliet Jake's release from prison, he had vowed to visit the mother nun at the orphanage they were raised in, and was now forced to go by his brother. Once they arrive they are soon greeted by their friend and mentor Cab Calloway an old friendly janitor from the orphanage who tells them that the bank wants to foreclose on the land. Although it is never stated it is inferred that the mother at the orphanage scared Jake with the concept of evil, and wanted to go on this journey in order to cleanse himself of this evil. This is a transformative crisis because Jake has never before been a religious man, he has never before worried about the after life. It is a sudden irrational fear which derives from the lecture which the nun gave them upon their return to the orphanage. The Threshold is overcome when the blues brothers visit the church of Reverend Cleophus James who inspires Jake and Elwood to reunite their former band, The Blues Brothers, in order to earn enough money to save the orphanage. Jake is touched by the reverends sermon he is scared into action by the idea of eternal damnation. He has an epiphany during the church's gospel...
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...Discuss the trends in the golf equipment industry and how it may impact a company’s strategy. Ans: According to new the United States Golf Association (USGA), Golf equipment manufacturers are forced to launch the equipment within the limitation. Therefore, the product differentiation is not quite high while recreational golfers do not enjoy playing due to lack of innovational equipment. Also, the USGA states that there are various factors that result in the declining of golfers such as: - Game difficulty: Golf equipment manufacturers are forced to follow the new USGA rules, thus, recreational golfers are suffered from the limitation of golf equipments. They cannot enjoy playing golf as much as before while new golfers face the difficulty of playing. - Time consuming for practice: According to the limited innovation of golf equipment, golfers need lots of time to practice while they also have take responsibility to their job and spend time with their families. - High golf fee: Some golfers realize that golf fee is high, as a result, they cannot practice frequently. 2. Discuss the importance of innovation, brand, performance, and price in the golf equipment industry. Ans: Good reputation and image can lead to brand loyalty. That’s why many brands use lots of advertising expenditure to promote their brands. As the leading sports brand in the world, Nike has a clear marketing advantage over its competitors. Nike spends some of their annual revenues on advertising to...
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...Situational Analysis: Arena Park Golf The following information I have composed from the city of Cape Girardeau, specifically on economic climate, demographics, demand trends, technological trends, competitor analysis, regarding Arena Park Golf. This is for a class project that involves a situational analysis of Arena Park Golf and the surrounding area along with some history of golf. Opened in 1998, Arena Park Golf is a golf store located in Cape Girardeau, Missouri with approx. 3,000 square feet of retail space dedicated to golf clubs, golf clothing or other golf equipment essential for the avid Missouri golfer. There are also a public and private golf courses in Cape Girardeau, which shows a market for golf not only in the city but the surrounding area. The history of golf’s built environment in the U.S. has reflected the changing face of the game in terms of the number and type of golf courses built, as well as the demographic profile of those playing the game. Since 2000, the golf industry has experienced significant declines in the key barometers of its economic wellbeing as defined by: the decline in the number of golfers and rounds played and the decrease in the number of golf courses. During the 20th century, there were three “boom” periods of accelerated golf course development that peaked in 1930, 1970 and 2000. The first boom in the 1920s built private golf courses for the upper class. The second boom in the 1960s built public golf courses for the burgeoning middle...
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...Assignment Questions - Golf Q 1. What are the defining characteristics of the golf equipment industry? What is the industry like? A 1. The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. Golf companies usually gain brand recognition by hiring professional golfers to promote their products because this can be one of the most effective forms of advertising for a company. Companies are also focusing on creating new products for recreational players. For any company who wants to enter into this market would require significant amounts of investment. Q2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive...
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...PGA Player Introduction: Chuck contacted a sport psychologist at the end of May, approximately halfway through the year. At that time he was about 90-100 on the money list and had made about $65,000. Chuck indicated that he had an inability to concentrate on the course. He was very indecisive about club selection. He was also very intropunitive (self blaming), demanding, and negative self-talking. Intervention: The sport psychologist traveled to Chuck's home and spent 2 days with him. He utilized a paper and pencil "Golfing Profile" form to gather some intake information. This inventory proved very useful. They talked for 2-3 hours, went to the course and hit balls, played 9 holes and met again the next day with his wife, also a very good golfer. It was determined that Chuck's concentration problem was due to high internal overload; that is, he was thinking too much on the course. Chuck was able to hit shot after shot where he wanted the ball to go. Yet, he was always overly critical of the result. Nideffer's Model of Attentional Control was utilized to explain to him where his attentional difficulties occurred. SCORE was utilized as a way to go over his pre-shot routine, S (Scan),C(Contemplate), 0 (Overall feeling), R (Ritual), and E (Execute). It was decided that Chuck would cut down the amount of time in the scan and contemplate areas and to concentrate on the feel, ritual and execute stages. The plan was to eliminate or cut down the time for second...
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...a retail store that specializes in the distribution of golf supplies to the everyday recreational golfer. The Golfsmith chain operates with 75 retail stores in 21 different states providing not only golf but tennis equipment as well. Carl Paul founded Golfsmith in 1967 with the intention to create a retail service that helped golfers improve their games with custom club fitting as well as market all sorts of equipment in the golf industry. The golf industry is a large one where technology is always evolving along with the techniques and strategies to being a successful golfer. Golfsmith is one of the few chains that can cater to the various needs of golfers throughout the country. The chain defines its core purpose as “To inspire people to play better and live life more.” The golf market is more of an exclusive one compared to other sports such as basketball or football. Golf is a sport more played by wealthier consumers that reside in suburban neighborhoods. Therefore the marketing strategies of a chain such as Golfsmith can be narrowed down to specific demographics. About 85% golfers tend to be white males that fall into the age 18-65 ranges. Over half of the golf consumer market are some sort of manager, professional or executive and have some sort of college degree. The average household income for a golf consumer is over $80,0000. Also, 90% of them tend to be homeowners. These statistics show that golf is an expensive sport played by the more wealthier and...
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...1. Discuss the trends in the golf equipment industry and how it may impact a company’s strategy. Ans: According to new the United States Golf Association (USGA), Golf equipment manufacturers are forced to launch the equipment within the limitation. Therefore, the product differentiation is not quite high while recreational golfers do not enjoy playing due to lack of innovational equipment. Also, the USGA states that there are various factors that result in the declining of golfers such as: - Game difficulty: Golf equipment manufacturers are forced to follow the new USGA rules, thus, recreational golfers are suffered from the limitation of golf equipments. They cannot enjoy playing golf as much as before while new golfers face the difficulty of playing. - Time consuming for practice: According to the limited innovation of golf equipment, golfers need lots of time to practice while they also have take responsibility to their job and spend time with their families. - High golf fee: Some golfers realize that golf fee is high, as a result, they cannot practice frequently. 2. Discuss the importance of innovation, brand, performance, and price in the golf equipment industry. Ans: Good reputation and image can lead to brand loyalty. That’s why many brands use lots of advertising expenditure to promote their brands. As the leading sports brand in the world, Nike has a clear marketing advantage over its competitors. Nike spends some of their annual revenues on advertising...
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...3/20/2013 Case 7.3 Summary The Issue in this case is that Cassie Pfenning was struck in the jaw with a golf ball while driving a beverage vehicle during a golf scramble and received major and permanent injuries to her mouth jaw and teeth. She filed a complaint against the person who hit the ball, the Elks club holding the scramble and others and alleged “the defendants were negligent in failing to exercise reasonable care for her safety while on the golf course.” Pfenning claims that as a direct and proximate result of the defendants negligence that she was forced to suffer physical and mental pain and anguish. Rule of Law in this case claims that the court had consistently held that “there is no duty from one participant in a sports activity to another to prevent injury resulting from an inherent risk of the sport.” This means, that since she agreed to be there, she was in charge of her own safety. The applied rule of law in this case stated that even if you were to assume the Pfenning was completely ignorant to the game prior to the event, after the approximately 3 hours she spent prior to being struck by the ball, she should have been aware of the possible risks involved in the game and thus could not hold the defendants responsible for her safety. In conclusion, given Pfennings status as a participant of the scramble while driving the beverage cart, as well as her inherent knowledge seeing the game played, the court found the defendant did not owe her a...
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...wilderness and development that are still in the works. Of course this doesn’t mean that the entire island will be over-developed. We at Baderman Island have intentionally designed permanent wilderness areas – in addition to the 375 acres of the botanical gardens -- that will be integrated into the master plan of the Island.Here are just a few things that we have in the works: Pepicello Fairways are planning on adding an additional 18 holes of golf on 75 open acres adjacent to the existing golf course. This new range will be designed for those golfers seeking the additional challenge needed to drive up their game. The WIlliam C. Martin Botanical Gardens are growing. Currently the 225 acres of preserved wilderness is home to abundant wildlife, exotics plants, and colorful butterflies. In attempt to better protect the gardens, an additional 150 acre buffer area is being created around the garden. Additionally, the existing walking and hiking trails are being expanded to make for better access for wheelchairs and those guests that request golf cart accessibility. Plans are in the works to expand the Baderman Island Oasis Spa. The modest 50 acres site is being expanded by an additional 25 acres with additional facilities as well. These expanded facilities will include more private rooms, larger massage areas, and better availability for services. Need more room to play? Well you’re in luck. The 50 acre Recreation Area is being doubled. The new cove will have improved tennis facilities...
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...into Callaway establish a strong product portfolio. In 1987, Callaway became the first golf company to use computer controlled milling machines to produce innovative club designs. These clubs helped eliminate/reduce the impact of variables such as directional control, distance, etc. during the game thus making it easy to play. Callaway consistently produced innovative products at an impressive rate thus appealing to its present customers at the same time attracting new customers. Examples include: 1988 Introduced S2H2 technology 1991 Big Bertha club design is launched ruled the market in the 90s 1993 Big bertha Heavenwood club introduced 1994 Big Bertha stainless steel woods and Irons are introduced ACQUISITIONS: In 1997, Callaway acquired Odyssey which was one of the leading manufacturer of golf clubs at that time. This move of Callaway had several advantages: 1 This acquisition added more variety of clubs to the product portfolio. 2 Increased market share which is directly proportional to the increase in customer base 3 Reduced competition 4 More manufacturing capacity with Callaway can use Odyssey’s establishments GREAT CUSTOMER RELATIONS/ENDORSEMENTS: Callaway established great rapport with many leading golf players of the time by working closely with them and preparing custom clubs. Many players used Callaway’s clubs with some endorsing the brand and won major golf championships. Examples include: 1 1990 Don Bies becomes the first PGA tour player to...
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