Taylormade's Competitors Essay
E. Issues facing competitors Going forward, competitors continue to face steep challenges within a market industry that is becoming gradually tougher. Considering industry competitors including Callaway Golf, COBRA PUMA GOLF, PING, Nike Golf and Wilson Golf, they all face a common challenge in taking over market share from Adidas subsidiary and market share leader, TaylorMade. Earlier this year in March, TaylorMade-Adidas Golf reported to have broken records and reached stronger numbers than before. According to the company, its sales have soared from $1.5 billion to $1.7 billion worldwide within the past year. Taking a closer look, irons sales gained 32 percent (grabbing 25% of U.S. market share), footwear sales increased 19 percent and miscellaneous golf hardware improved 48 percent. In addition, industry research firm Golf Datatech mentioned that in the United States, the company’s “wood market share was 47 percent, [which also] accounts for about half of the company’s global sales,” (Freeman, 2013). While the Adidas subsidiary has been continued to perform better, its fellow peers have
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seen certain struggles in regards to keeping up with sales. According to San Diego Business Journal writer, Lou Hirsh, competitors such as Callaway Golf has struggled with recent annual operating losses up to $52 million, due to rising production costs and a golf industry that hasn’t yet regained its footing from the financial crisis, (Hirsh, 2012). While TaylorMade may be dominating the market today, the industry is always changing dynamically.
As some market leaders are targeting Adidas closely, it would be careless to ignore the market potential that other companies may have looking forward, such as Nike Golf. Although it is a dominant global leader in virtually the rest of the sports industry, its market share in golf equipment is still relatively raw. That being said, there are signs that should put fellow competitors on alert, as Nike Golf is continuing to improve its market position. According to Erik Siemers, Portland Business Journal writer, Nike Golf sales “grew 10 percent last year to $726 million, [posting] its second-straight year of sales last year after a three-year decline that coincided with the economic recession and Nike Golf athlete Tiger Woods’ on- and off-course regression,” (Siemers,
2013).
While things won’t certainly change overnight, it is apparent that experts find Adidas and Nike emerging as market leaders. Market competitors should treat the two companies as threats, considering their strong financial stability and its ability releasing compelling, innovative products.
References
Hirsh, L. (2012, July 13). Callaway golf plans to cut workforce by 12 percent. San Diego Business Journal. Retrieved September 18, 2013, from http://sdbj.com/news/2012/jul/13/callaway-golf-plans-cut-workforce-12-percent/ Freeman, M. (2013, March 20). TaylorMade-Adidas golf posts stronger sales. The San Diego Union-Tribune. Retrieved September 18, 2013, from http://www.utsandiego.com/news/2013/Mar/20/TaylorMade-Adidas-Golf-Posts-Sales-Gains/
Siemers, E. (2013, January 25). Nike golf seeks larger market share. Portland Business Journal. Retrieved September 18, 2013, from http://www.bizjournals.com/portland/print-edition/2013/01/25/nike-golf-seeks-larger-market-share.html?page=all
seen certain struggles in regards to keeping up with sales. According to San Diego Business Journal writer, Lou Hirsh, competitors such as Callaway Golf has struggled with recent annual operating losses up to $52 million, due to rising production costs and a golf industry that hasn’t yet regained its footing from the financial crisis, (Hirsh, 2012). While TaylorMade may be dominating the market today, the industry is always changing dynamically.
As some market leaders are targeting Adidas closely, it would be careless to ignore the market potential that other companies may have looking forward, such as Nike Golf. Although it is a dominant global leader in virtually the rest of the sports industry, its market share in golf equipment is still relatively raw. That being said, there are signs that should put fellow competitors on alert, as Nike Golf is continuing to improve its market position. According to Erik Siemers, Portland Business Journal writer, Nike Golf sales “grew 10 percent last year to $726 million, [posting] its second-straight year of sales last year after a three-year decline that coincided with the economic recession and Nike Golf athlete Tiger Woods’ on- and off-course regression,” (Siemers,
2013).
While things won’t certainly change overnight, it is apparent that experts find Adidas and Nike emerging as market leaders. Market competitors should treat the two companies as threats, considering their strong financial stability and its ability releasing compelling, innovative products.
References
Hirsh, L. (2012, July 13). Callaway golf plans to cut workforce by 12 percent. San Diego Business Journal. Retrieved September 18, 2013, from http://sdbj.com/news/2012/jul/13/callaway-golf-plans-cut-workforce-12-percent/ Freeman, M. (2013, March 20). TaylorMade-Adidas golf posts stronger sales. The San Diego Union-Tribune. Retrieved September 18, 2013, from http://www.utsandiego.com/news/2013/Mar/20/TaylorMade-Adidas-Golf-Posts-Sales-Gains/
Siemers, E. (2013, January 25). Nike golf seeks larger market share. Portland Business Journal. Retrieved September 18, 2013, from http://www.bizjournals.com/portland/print-edition/2013/01/25/nike-golf-seeks-larger-market-share.html?page=all