Golf Industry Competition

TaylorMade selectively chooses its retailers to more effectively sell its products. Being part of the adidas Group allows TaylorMade to use the wide distribution channels and infrastructure that adidas brand currently operates to grow its product line in new emerging markets. TaylorMade focuses on strategic accounts to create and make available state-of-the-art floor displays that showcase products and communicate key messages, which allows it to better position its clubs and balls among the top-selling golf products (adidas Group, 2013). TaylorMade is also focusing on smaller golf shops and privately owned retailers to gain a more personal approach with consumers.

Companies currently operating within the golf industry, specifically Calloway Golf, must change their current marketing approaches and strategies to withstand the recession and threats facing the industry. Although Calloway has a strong R&D department that tends to remain competitive with products and technology, there have been little results in reference to scores. It is imperative that if companies are going to market a product that will help golfers drive further and straighter that the results depict this so that not to damage the brand name of a product. Secondly, due to the decline in equipment sales and the number of golfers, prices are dropping and companies are outsourcing to maintain the volume needed to remain competitive. Companies must be cautious and aware so that counterfeiting may be reduced. This reduction would also allow companies to reduce their pricing and have more sales without the competition of these cheaply priced knock-offs. In the instance of

Looking at the market we can see that Golf Companies have suffered after the 2008 recession. However, in 2012 golf ball market was $483 million in retail sales from 17.6 million units which was 4.1% growth from 2011, showing that there has been improvement in the market performance from companies that had lower prices for golf equipment as people were willing to spend on their product. However Altius could not regain

Competitive environments are defined by the identity, track record, financial strength and market share of key competitors. Harvard Professor Michael Porter 's Five Forces model can be used to evaluate a company 's competitive position. These five forces are barriers to entry (the ability of new players to enter the market), buyer power (the ability of customers to influence price),

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.

The game of golf is one of the oldest of today’s modern sports. Its exact beginnings are not known; however, some historians trace golf back to the Stone Age while others claim it originated from the “idle antics of shepherd boys knocking small stones into holes in the ground with a crook while their flocks grazed nearby” (Peper 1). Researched back to the time of the Roman Empire, it is also believed the sports-oriented Romans played a forerunner of the game of golf called paganica. This sport involved the use of a bent stick and a ball stuffed with wool played in the open countryside.

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

In the five forces model by Porter, four forces will influence the fifth one (see the model on the right). The bargaining power of suppliers, the bargaining power of customers, the threat of substitute products and the threat of new entrants will influence the fifth force: the level of competition in the industry (S.Clegg, C.Carter, M.Kornberger, & J.Scheitzer, 2011).

Callaway Golf Company (CGC) excelled in designing, development, manufacture and marketing of Golf clubs and accessories. Established in 1982, the publicly traded company recorded a steady growth in sales from $5million in 1988 to $800 million in 1997. This was possible due to clarity in vision of its CEO Ely Callaway, which was aimed at making a satisfying product which was uncommon and enjoyable for the average player rather than professionals. The revolutionary clubs were sold to professional as well as average players at premium prices driven by the high performance delivered by them.

Size – Callaway is the #1 golf manufacturing company in the world. With Callaway’s size, it gives Callaway power and advantages over competitors.

Products in the golf ball category include balls sold under the Callaway Golf and Top-Flite brand names. Callaway holds the #2 position in the golf ball market, with a 12.2% share domestically and a 13.5% share in the U.K.

We have carefully looked at our external and internal environments. The external analysis looked at the market and the competition, while the internal analysis examined Callaway’s performance, as well as its customers. We also performed a “SWOT” analysis, enabling us to identify our strengths, weaknesses, opportunities, and threats. This analysis lends to the view that it is imperative that we change our existing strategy and focus on other markets. It is not suggested that we ignore our existing markets, but rather that we expand our customers and potential customers access to custom club fitting. I firmly believe that by pursuing this avenue, and by implementing and controlling the proposed fundamental marketing strategies and marketing mix strategies, we will be able to achieve the stated objectives.

Callaway Golf Company should change their focus and perception of marketing because their premium priced golf clubs do not match today’s hard economic struggles that average golfers are in as well as the changing golf culture that is threatening their sales.

This article summarizes the key ideas and gives an overview of how this concepts works. Describes, how this five competitive forces shape every organization and every market. Summarizes how these forces will define the power of profitability, competitiveness, and attractiveness of the industry. Depending on the facts which is derived from the five forces analysis, the management of organizations will decide how to effect or abuse specific features of their industries.