...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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...What are the defining characteristics of the golf equipment industry? Defining characteristics for the golfing industry focus mainly on innovative technology and name or brand recognition. Golf companies essentially sell the same products, so they need to differentiate their products through technological advances such as size, weight, swing velocity, and distances. Research and development is essential to any golf company wanting to stay ahead of competitors. Fortunately for them, golf as a sport attracts mostly upper middle class to wealthy consumers of the economy so the industry can focus on quality with the assurance of high-end sales. Unfortunately for them, because of the expense of golf, when the economy falls, so do sales of golf equipment. Due to the maturity of the market, golf companies are turning to different aspects of the economic market instead of focusing only on clubs and golf balls. International interest in the game of golf has helped to turn the maturing sport into higher profit margins when adding overseas sales, and a new focus on younger generations (and ultimately their large amounts of disposable income available to them through credit cards) has helped to promote the sport to confirm long-range interest in the golf equipment market. Golf companies commonly gain brand recognition by hiring professional golfers to promote their products because testimonials by well-known golfers can be one of the most effective forms of advertising for a company....
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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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...Alternative Strategies Healthy competition within the industry is apparent. The major issues lie with regulations, loss of consumers/interest, the recession, and the counterfeiting wars. All companies have strategies that are effective, but should be changed to adjust to the current environmental issues. Callaway currently has an effective strategy focusing on research and development and remains the industry leader. TaylorMade is focusing on out sourcing production in order to increase operating margin and is second in the industry. Titleist is focusing on their strong golf ball market. This is dangerous because if they were to start losing market share, the heavy reliance could negatively impact the company and they could lose millions. Ping currently focuses on its drivers and irons which are selling well, but because of their limited amount of product lines it remains fourth in the industry. Nike relies heavily on endorsements and is the younger company in the golfing industry. The following are three alternative strategies that can help the companies and industry as a whole live up to their full potential at this point in time. Blue Ocean Strategy All the golfing manufacturers could benefit from a blue ocean strategy. A blue ocean strategy is one in which “growth in profits or revenues is achieved by discovering or inventing new industry segments that create altogether new demand.” (Gamble, 2011) In the golfing industry competitors are constantly trying to beat each other...
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...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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...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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...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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...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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...Club Fitting, The Importance Of Page Break Impossible; it is impossible for a golfer to maximize the potential without two key components. First component is understanding how to properly position and accurately move to body. Simply having an understanding of the fundamentals of golf and the ball flight laws will not give any golfer the best possible opportunities to succeed. Knowledge of what the body does during the golf swing and how to maximize the potential of those body parts will allow the coach and golfer to assess and train for maximum performance. While possessing these fundamentals will increase the ability of the golfer to make their best possible swing, maximum potential can't be reached if the perfect swing is swinging incorrect equipment. Proper and accurately fit equipment is the second and equally important key to maximizing potential and player ability enhancement. (1)"Fitters say the reason a lot of people hit it sideways is because they haven't been custom-fit. Trying to figure out the swing with clubs whose length, weight, lie angle, shaft flex or grip size don't match the body encourages players to make unnatural compensations that prevent them from developing proper mechanics." Meeting with and interviewing the potential student or fitting client will allow the fitter to have the most accurate ability to assess what the client can and can't do. Physical disabilities will effect what the golfer can do and what the fitting professional should...
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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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...Callaway Golf Clubs Term Paper Assignment Webster University Marketing 5000-02 Fall I 2010 Rashad A. Myers Executive Summary Callaway is a premium golf equipment company which focuses on increasing the overall experience of playing the game for those that use its products. The company will increase market share and profits by focusing on specific target markets over the next 12 months. Environmental Analysis Socio-Culturally, Callaway is affected by the fact that the majority of its customers are Caucasian and male. Further, this demographic is largely made up of male baby boomers, and this segment is aging rapidly, with many giving up the game due to health reasons. Also, children are not taking up the game with the numbers that they used to. Instead, they opt for video games and other sports. Politically, Callaway is not affected by legislation. Callaway is certainly impacted by what is going on economically. Golf is a relatively expensive sport to play with any regularity, when you take into consideration the equipment costs and green fees. One of the first activities that are limited is recreational spending in a down economy. The company will suffer if people’s discretionary spending is limited for extended periods of time. Callaway is affected by Legal and Regulatory forces because its governing body, the United States Golf Association (USGA) can make changes to equipment any time it wants to. Callaway incorporates technology heavily in their...
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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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...Industry Report Jim Bob Cooter MANGT 595: Mo/Wed/Fri 1:30 3/4/16 Industry overview: use a maximum of 2 paragraphs to define the industry (e.g., major customer needs met), history, and average profitability. The overview should be as focused as possible The game of golf has been on this Earth for many many centuries. Starting in Scotland in the 15th century the game of golf most likely was brought to the United States when Europeans migrated here. According to an article on Livestrong.com titled “Early History of Golf in the United States”, we know that golf dates back as early as the 1600’s. The article states that two men in Albany, New York were documented being arrested for being drunk and breaking windows by hitting balls with their clubs. Jump ahead to 1744, the article states that shipping records document golf equipment being shipped from Scotland directly to the Savannah Golf Club in Georgia. This evidence tells us that the sport of golf arrived in the United States as early as the mid 1600’s. The golf industry continues to have it’s ups and downs, but the truth is that the future of the golf industry is looking up. According to a Forbes.com article titled “The State Of The Golf Industry In 2015”, CEO of World Golf Foundation, Steve Mona, was quoted saying that about 25 million Americans participate in the sport of golf as of 2015. Over 455 million rounds are played annually at about 15,350 golf courses around the U.S. The golf industry alone is practically...
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...recognized as one of the more popular sports, golf makes quite the impact on the economy. What many people don’t realize is that the golf industry is larger than spectator sports and preforming arts combined. Golf’s popularity and the number of players have continued to rise as the years go on. Golf makes an impact through many ways such as employment, equipment sales, endorsements, number of courses, investments, and golf course housing. Overall golf brings in a lot of revenue. A recent report stated “The World Golf Foundation's Golf 20/20 report estimates that the industry generated $68.8 billion in goods and services in the U.S. in 2011, with a total economic impact of $176.8 billion.” (Murphy 1). Generating $68.8 billion for one sport is already impressive but than making an economic impact of $176.8 billion is outstanding. Even as a golfer I never would’ve guessed that golf attained that much revenue or made such an impact on our economy. The golf industry was not immune to the tough economic conditions that the US faced but it is predicted that it’s moving back towards the $79.5 billion it produced in 2005 (Murphy 1). Experts believe as the economy continues to heal, the golf business will begin to as well (Hutheesing 1). It is great to see the sport of golf climbing its way back up since the struggling US recession. Along with bringing in a lot of revenue, golf makes a big contribution to employment in the US. The industry employs about 2 million people whose combined...
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...December 10, 2014 Russ Sumpter Table of Contents I. Executive Summary 3 Description of Business 3 Mission Statement 3 The Product 3 Market Analysis 3 Future Projections 4 Financial Overview 4 II. Market Analysis Summary 4 Industry Analysis 5 Market Trends 6 Barriers to Entry 6 Changing Forces 6 Customer Analysis 7 Competitor Analysis 7 Critical Success Factors 8 III. Business Implementation and Evaluation 8 Implementation Plan 9 Evaluation 9 I. Executive Summary Description of Business Increasing demand for accurate score keeping coupled with advances in golfing technologies and the ever expanding locations of golf courses have dramatically altered the golfing world by making golf courses more accessible and have leveled the playing field between novice and experienced golfers. However, unlike times past when scores were tallied based on personal integrity, there is now a way to keep a golfer honest about their score keeping. . This will be accomplished by partnering with local golf courses to promote this new technology during the initial roll out phase of the Integrity Glove (IG). The company will provide a select few North Texas golfers with an opportunity to try out the latest innovation in golf scoring equipment at their preferred course. Innovations that improve the accuracy of scoring will enhance the competition and enjoyment of the game for all parties involved. Scoring has traditionally been a function of human inputs. During...
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