The Performance Indicator Dilemma

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The Performance Indicator Dilemma Discussing the inconsistency between the PI value proposition and the lack of adoption There is a clear inconsistency in the claim that Performance Indicator (PI) offers significant profit uplift potential for golf ball manufacturers and the fact that no single manufacturer is yet to adopt the technology. This memo discusses the key arguments on why this is the case. There are several key factors that explain this apparent inconsistency, including: customer preferences and buying behavior; manufacturers’ agendas, concerns and willingness-to-pay; and the reliability of financial forecasts proposed by PI. Overview of Performance Indicator value proposition PI offers an innovative, patented technology,…show more content…
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. Finally, there still appears to be significant questions regarding customer perception of grey balls of their favored brand and the subsequent impact on their purchasing behavior. Manufacturers’ agendas, concerns and willingness-to-pay Golf ball manufacturers would be looking to achieve several key strategic goals, such as increased sales, increased market share and / or increased profitability, to adopt and implement PI’s technology. Accordingly, manufacturers are mainly concerned with the cost and implications on manufacturing, competitor reactions (and customer perception), the forecast growth in the new balls market, the share they could capture and the financial details of agreement. Cost and implications on manufacturing While yet to be proven commercially, the PI process claimed to be easy and cheap to incorporate into the
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