Golf Equipment

3844 WordsMar 2, 201116 Pages
CASE STUDY #4 1. What are the defining characteristics of the golf equipment industry? What is the industry like? 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…show more content…
| Ping Golf | 20 endorsement contracts with PGA Tour golfer, 12 LPGA Tour members. | Nike Golf | 17 PGA Tour members, Tiger Woods for club, shoes and apparel. | c) Equipment manufactures have moved to competing on price due to challenges with differentiation brought on by new USGA and R&A rules. While Callaway Golf, TaylorMade, Ping, Titleist and Cobra Golf tightly controlled retail prices, Nike Golf is the only brand that uses different strategy with the lowest price charge that came from an uncontrolled retail price. The competitive force that seems to have the greatest effect on industry attractiveness is the bargaining power of the golf’s governing organizations. USGA and R&A limitation to the innovations affects the whole industry from the technology advancement manufacturers to the declining numbers of golfers. The restrictions to the high technology advancement of golf equipment decline a large number of recreational golfers. The manufacturer who tried to continued produce the equipments that against USGA’s rules had face with the failure because golfers did not dare to buy any products that against the USGA’s regulations. USGA and R&A limitation to the innovations force the overall industry and each company to find its own strategic in order to compensate with the USGA. The competition in the golf equipment industry is fierce among rivals in this industry. The competition weapons that are being used are centered on the technological

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