Golf Equipment Industry

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Case: Competition in the golf equipment Industry 1.What are the defining characteristics of the golf equipment industry? What is the industry like? The golf industry in total contains 62 Billion Dollars of goods and services. The golf equipment industry in particular contains 4 Billion Dollars. It contains golf clubs, balls, gloves, footwear, weges, bags, irons, putters, etc. There has been a decline in the industry from 200-2003 and an increase from 2003-2007 especially in drivers and woods. Moreover the number of golfers declined from 1998 (27.5 Mio) – 2007 (22.7 Mio). Reasons are the difficulty to play, expensiveness and time to spend in order to improve. The industry consists on few competitors. (there are 5 big manufacturers).…show more content…
What are the underlying drivers of change and how might those driving forces change the industry? Through the rules of USGA concerning product innovation and quality there is a big change and pressure in this industry. This results in discourage of Innovation and less technological advance. Through these rules there is a big differentiation of products because everyone has the same product specialization and these only differ in differentiation or design or even the materials they insist. There has been made a big effort to outsorce many companies into Asian countries in order to save costs and increase efficiency. Many manufacturers suffered retail decreases because of the decrease of golf players and the legislation changes of USGA. There is also a high marketing platform of Endorsement which insist in marketing of famous and succesfull golf players. 4.What does your strategic group map of the golf equipment industry look like Which strategic groups do you think are in the best positions? Which are in the worst positions? There are 2 Axes: One of them is Product Innovation concerning legislation (Vertical) and the other one is Price/Performance (horizontal). The measurement consists from low to high. The size of the circle depends on the market shares (net sales). Best position would be high product innovation within low prices. Worst position would be high prices and low product innovation. Callaway has a net sales volume of $ 1,124 Bio.

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