Golf Equipment

We are aiming at understanding how Recreational Equipment INC. (REI) achieved a competitive advantage through their strategies and how they implemented those strategies. REI differs from the other sporting goods stores in their quality product selection, complements, and excellent brand name promotion. These qualities enable REI to sell merchandise at premium price levels (Morse, 2003).

It is unknown when the game of golf originated, but it is believed that people began playing in Europe during the middle ages. In the United States, golf was a sport primarily played by the wealthy individuals until tournaments began being televised. Since then, golf has grown to be a very lucrative industry with over 27 million golfers nationwide by the end of the 1990’s. “Competition in the Golf Equipment Industry,” a case study written by John E. Gamble of the University of South Alabama, is an overview of the problems currently facing major companies in the golf equipment industry: technological limitations (due to golf’s governing organizations), a decline in the number of golfers,

Imagine the sun bursting through the trees for the first time of the new day, the smell of freshly cut grass still potent to your nose as you tee the ball up for a round of golf in the cool mist of a spring morning. "That is what brings you back every time, the smell of the air, the coolness of the whether and the beautiful surroundings that make every shot enjoyable." (Suess, PI) This is the game of golf in its finest and most exquisite time to many people and many people it has touched in its long history. Golf is a lifestyle and not just games to people that are avid in playing. The game of golf has a history that is rich in technological advances and personal accomplishments, which through time has shown to shape

The partners must do additional analysis prior to determining if they should invest in a new miniature golf venture in Golden City. Before establishing marketing objectives, advertising and promotional programs, plans for addressing demand fluctuations and considering alternate locations, they must determine if they can generate sufficient sales to fund operations. They have done market research which provides a good baseline for establishing the demand, course capacity and anticipated costs. Once they have analysed this data and established that the business is financially viable, they can address advertising, demand and location questions by developing a marketing strategy.

According to the porter's typology of corporate strategy (Richard, 2009). Suggests that corporate strategies can be categorized on two dimensions, based on whether the firm is seeking to be the low-cost producer of standards products or whether it is attempting to differentiate itself by having unique products or services. And the multi product case is not a competitive environmental one cause it shows that people who want the product will generally be willing to pay what it takes to get it and it will have a fixed volume and fixed price and nobody else will be able to manufacture a similar club, due to the patent protection. So the

While it would theoretically improve their individual performance, it would also limit their access to cheap balls by driving up the price for used balls, requiring them to purchase more new balls and drive an overall increase in their annual golf ball expenditure. Purchase figures show that the vast majority of balls used (171 out of 220 million dozen) are either found or bought used, meaning that the majority of golfers do not buy new balls. Accordingly, this majority would likely view the reduction in access to cheap golf balls and increase costs as an affront.

Rob Osinski and Bob Winskowicz began a start-up venture that developed a new technology that reveals golf balls that have undergone water damage through discoloration. They patented the idea with “the exclusive right to employ any technology that would lead to a change in the appearance of a golf ball as a signal that its performance had been impaired by exposure to water”. They both quit their jobs and pursued the idea that later became Performance Indicator. The technology would expand the market of golf balls by reducing the number of used golf balls recycled and reused. The golf ball industry is worth 1 billion dollars and sells 50 million dozen golf balls at an average of $20 a dozen a year. It is projected that 220 million dozens of golf balls are lost are year yet, golfers use 100 million dozes of recycled balls a year. This creates a potential for profit among all golf ball manufactures, however, no manufacturer wants to adopt this technology first due to possible risk it might create. If only one manufacturer adopts this technology then it might affect the consumer’s choice of purchase. Instead of relying on the manufacturers to make the first move, I recommend that Performance Indicator appeal to The United States Golf Association (USGA) to make their technology a regulation for all golf balls. The USGA has strict specifications that makes a golf ball legal and regulation. If the technology was considered to be a specification of all golf balls to secure good

The U.S. Golf Association (USGA) specified the characteristics of legal balls within tight parameters. These restrictions on size, weight, materials, texture, etc., seemingly left little room for product innovation. In fact, the USGA regulations specified not just what went into a ball, but how it could perform, stipulating to within 10-20 yards how far the ball could travel when hit by a certain type of club traveling at a certain speed, all verified under controlled conditions with robotic testing equipment. Nonetheless, new product introductions were rampant in the industry, with slight changes in surface coatings and dimple patterns, for example, being touted for their ability to add a handful of yards to a golfer’s shots, to give more accuracy, or to create greater control through faster spin on the ball. In addition, ball manufacturers spent millions of dollars on advertising campaigns for their balls. There were three basic types of balls, all conforming to the same general specifications. The oldest technology still in use was the three-piece ball, which consisted of a core, windings, and a cover; this ball was good for spin and overall control. The second, and most popular, type of ball was the twopiece ball, which eliminated the windings of the three-piece ball; this ball produced more distance. The newest technology was the “solid core, multi-layered ball,” which had taken the

With the professional endorsement by these golfers, the target market was able to see the product in action and also learn how to properly use them. With practice, these average

founder of Callaway Golf Company turned the most-feared club into the most-loved almost overnight. The driver became the fastest-selling club at retail. Many innovations have followed. From woods, irons, and putters to golf balls and golf accessories, Callaway Golf has consistently used ingenuity, quality construction, and technology to make the finest premium products in the industry.

The decision for an individual manufacturer to adopt PI’s technology will be determined by the potential increase in sales as golfers replace performance degraded balls with their brand. It is reasonable to assume that individual manufacturers are hesitant to pioneer this technology because there is no assurance that a performance degraded golf ball would be replaced with their own. The data indicate that golfers are comfortable using used balls, or value brands. By removing approximately 50% of the used balls from circulation, numerous golfers may utilize the lower cost alternatives to fulfill their required quantities.

Helmstetter and his engineering team were very important to the execution of Callaway Golf’s competitive strategy. Callaway Golf Company consistently outspent its rivals in the industry on R&D which “allowed it to continually beat its competitors to the market with new innovations.” (P c210) In 1994, Callaway Golf opened the Helmstetter Test Center located a mile away from the main campus. The Helmstetter Test Center had two primary uses; it provided an ideal place to custom-fit clubs for the touring pros who used Callaway equipment, and it allowed Callaway R&D staff to test new products in the developmental stage. The development of new products at Callaway Golf Company not only included the research and development staff but also the sales and advertising staff. These teams worked hand in hand together. When the R&D would come up with a new product idea, the sales and advertisement staff would look over this idea and recommend changes based on the current market interests.

As the international sport of choice the rich and powerful, golf is viewed as a leisure activity and also as a source of economic development as. Golf’s challenges as well as opportunities are difficult. They are almost all the time linked in one. There isn’t lack of strategic challenges to the game’s feasible growth. On one hand, environmental laws as well as regulations are protecting the water sources, thus leading to limiting land and water availability. Similarly, in within the same industry, the game has taken a back seat. It is now second to its investor profits. This is of course is without conceding the real compatibility of the two. And this is where the advantage of sustainable golf development lies obvious. It is rather evident that, all over the world, the consumer’s choices are being directly prompted by ethical as well as environmental issues. Governments too are gaining votes for their policies that are based on resource efficiency, environmental protection and pollution prevention. Water, energy and other essential costs are growing all the time. The media on the other hand, is more than willing to spotlight suggestions of damage or injustice at the push of a button. This being the case locally to globally

Professional sports are a vital component to our society as we know it. Week in and week out, fans fill the stands to cheer on their favorite teams, just the same as they did 50 years ago. On the contrary, these professional sports have evolved with the introduction of new technologies that are erupting controversies, especially in the last decade. Experts suggest that these advantages that today’s players have over those in the past can ruin the integrity of the achievements and records they set during their era. Players are getting a distinct advantage, raising the question at hand. Are technological advancements in today’s sports harming the game as a whole? Golf is undeniably a sport that has been thoroughly impacted by

Even though golf had grown to be a sizable part of the U.S. economy, the golf equipment industry was faced with serious troubles in 2008. The convergence of a variety of serious hazards to the industry had caused the retail value of the golf equipment industry to decline from approximately $4 billion in 2000 to about $3 billion in 2003. Golf equipment sales had rebounded to an estimated $3.8 billion in 2007, but many threats to the industry continued to exist. The number of golfers in the United States had declined from 27.5 million in 1998 to 22.7 million in 2007. The number of rounds of golf played in the United States