Golf Equipment Industry
Case: Competition in the golf equipment Industry
1.What are the defining characteristics of the golf equipment industry? What is the industry like?
The golf industry in total contains 62 Billion Dollars of goods and services. The golf equipment industry in particular contains 4 Billion Dollars. It contains golf clubs, balls, gloves, footwear, weges, bags, irons, putters, etc. There has been a decline in the industry from 200-2003 and an increase from 2003-2007 especially in drivers and woods.
Moreover the number of golfers declined from 1998 (27.5 Mio) – 2007 (22.7 Mio). Reasons are the difficulty to play, expensiveness and time to spend in order to improve. The industry consists on few competitors. (there are 5 big manufacturers). Retail values of the industry declined (1997-2000) and rise from (2000-2007). Characterizations of the industry is its high price pressure and the invention of new technologies and product innovatiosn (e.g Big Bertha).
Men, women, junior golfers are the protagonist of this type of sport. They can be divided in Professionals and recreational. This sport depends on household income (over $ 100.000). Especially white people spend their time performing this sport.
Important to mention is the fact that 1/3 of golfers are core golfers, which means they play frequently during one year. These are making 87% of industry equipment sales. Product differentiation in this industry is low in wedges whereas it is high in shaft performance. Custom fitting becomes very important.
The industry has to suffer from Counterfeits by Chinese products which are hard to figth against.
2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? Competition consists in the
1.What are the defining characteristics of the golf equipment industry? What is the industry like?
The golf industry in total contains 62 Billion Dollars of goods and services. The golf equipment industry in particular contains 4 Billion Dollars. It contains golf clubs, balls, gloves, footwear, weges, bags, irons, putters, etc. There has been a decline in the industry from 200-2003 and an increase from 2003-2007 especially in drivers and woods.
Moreover the number of golfers declined from 1998 (27.5 Mio) – 2007 (22.7 Mio). Reasons are the difficulty to play, expensiveness and time to spend in order to improve. The industry consists on few competitors. (there are 5 big manufacturers). Retail values of the industry declined (1997-2000) and rise from (2000-2007). Characterizations of the industry is its high price pressure and the invention of new technologies and product innovatiosn (e.g Big Bertha).
Men, women, junior golfers are the protagonist of this type of sport. They can be divided in Professionals and recreational. This sport depends on household income (over $ 100.000). Especially white people spend their time performing this sport.
Important to mention is the fact that 1/3 of golfers are core golfers, which means they play frequently during one year. These are making 87% of industry equipment sales. Product differentiation in this industry is low in wedges whereas it is high in shaft performance. Custom fitting becomes very important.
The industry has to suffer from Counterfeits by Chinese products which are hard to figth against.
2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? Competition consists in the