Golf Equipment

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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…
The USGA and R&A have announced the limitation on many aspects even though there is little evidences that technological advance of golf equipment will lower the score. The regulations that enforce rules on club head size and performance also increase the profitability to shaft manufacturers. The USGA allowed interchangeable shaft which mean that golfers can install different shafts into the driver head to have different launch characteristics. So the differentiation of golf club changes toward the compatibility with shafts. The skilled core golfers might have strong preference for a particular shaft and select golf club based on which club is compatible with their preferred shaft. The introduction of new regulation will also have an effect on the industry competition as the competition will shift from technological capabilities to price competition and endorsement contracts. b) The number of Golf players and their frequency of playing The trends of golf playing are going down because of many factors or reason, the several reasons are: * Difficulty of the game which disappointed the existing players and make them quit playing * Lack of free time the play and practice from many reasons * Health concern and injury from playing * High playing fee These factors are accountable for the declining trends of golf industry and will reduce

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