|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
... 1 Evolution of the Golf Equipment Industry
• Popularity and Sales
• Technological Innovations
• Extent of competition
1.2 Callaway Golf Company
• Strategy and Success
• Challenges faced
2. Analysis of Golf Equipment Industry
2. ... S golf equipment
o Introduction of technologically advanced equipment
2.2 Porter’s 5 Forces – Industry Competition
• Industry Structure
• Consolidated (non-price competition)
• Increase in Demand
• Increasing supply of technologically advanced golf equipment, hence little influence on rivalry. ...
• Callaway’s Competitors
• Direct competitors (Karsten Manufacturing’s perimeter-weighted Ping irons and Taylor Made’s Bubble shaft) due to their track record in product innovation and strong brand recognition.
• Indirect competitor (Cobra Golf Company) due to inferiority in terms of quality and technological advancements compared to the Callaway product line. ... 5 Porter’s Five Forces – Buyers
• Low volume per customer
Most golf players do not purchase large volumes relative to seller sales. ...
• Differentiation of Golf Equipment
Differentiation of technologically advanced golf equipment sets one apart from the other in terms of design and features. Golf players will thus face difficulty in finding alternative suppliers for a similar golf club, causing it to be susceptible to the bargaining terms. ... Experienced players who have gotten used to a certain brand of pro-line golf clubs will be reluctant to fork out time and possible disappointment in their games following a switching of brands. ...
• Switching Costs
Due to the complexity of pro-line equipment, golf players who have gotten used to one brand of clubs would have continued to keep to it. ... 7 Porter’s Five Forces – Complementors
• Golf Balls
An increase in sales of golf balls does not necessarily increase sales of golf clubs. Hence, insignificant effect on profits and golf clubs.
• Golf Course
Following a reduction in club memberships and golf lessons, this might encourage more people to take up golf as a sport. Hence, driving up sales of golf clubs and consequently profits.
• Golf Accessories
Golf accessories are inclusive of bags, grips and head covers. Due to their relative low prices as compared to golf clubs, an increase in sales of accessories often does not lead to an increase in demand for golf clubs. ...
As shown, the only complementary product identified to have an effect on profits and sales of golf clubs is golf courses. ... 7 Summary of Golf Equipment Industry
The table shows a company’s ability to compete in the industry. ... Critical Success Factors of the Golf Equipment Industry Relative to the Other Sporting Equipment Industries
3. ... The proportion of golf equipment sales out of the total equipment sales has been increasing throughout the years (Table A), which could be attributed to the higher prices commanded from the technological innovations. ... 2 Backward Vertical Integration by Callaway and Cobra Golf
By designing and producing the graphite shafts in-house, the two companies were able to gain significant cost savings, hence increasing the profit margins. ... 3 Great Marketing
The endorsements of these professional golfers were vital to the success of the industry, as people became more aware about golf as a sport and the different brands of golf equipment available through watching golf tournaments on television. ... 1 Change in the Number of Golfers and Golf Courses
There was a 24. ... Overall, an additional 2 million golfers and increase in golf courses by the year 2000 is expected. ... 2 Popularity of Golf in the Different Countries
Golfing was gaining popularity in the former Soviet- bloc countries like Croatia, due to the fall of the Soviet Union and the new Western influences.
Approximate Word count = 2762
Approximate Pages = 11
(250 words per page double spaced)
|
|
|
|
|
|