Competition in the Golf Industry

An Analysis of Competition in the play gage Industry It is unknown when the game of golf game game originated, but it is believed that people began playing in Europe during the middle ages. In the united States, golf was a sport in the main played by the wealthy individuals until tour weents began be televised. Since then, golf has grown to be a very lucrative exertion with everyplace 27 million golfers nationwide by the end of the 1990s. Competition in the play Equipment Industry, a case study compose by John E.Gamble of the University of second Alabama, is an overview of the problems truely cladding major companies in the golf equipment industry technological limitations (due to golfs governing organizations), a lour in the human action of golfers, and the economic break, and the terror of counterfeit products. These limitations are causing leadership competitors in the golf industry, namely Calloway play, to think their strategies in 2010. PLAC Analysis for Calloway Golf Ely Reeves Calloway junior , Calloways original owner, CEO and President, bought a manufacturing company of hickory shaft wedges and putters in 1983.Calloway, originally restricted to reproducing antique golf clubs, has extended its product breadth crosswise the golf equipment industry. Calloway Golf now encompasses drivers (with the founding of bulky Bertha), putters (with the acquisition of Odyssey), irons (designed to grapple against Titleist), golf balls (with the acquisition of Top-Flite), footwear and garment branding, and GPS units (with the acquisition of UPlay). See Timeline in cecal appendage 1. Calloway has differentiated itself from its competitors by its innovation, beginning with the triumph of their driver, Big Bertha, which initiated the technology race among squares.Calloway and its competitors confine to a greater extent innovative products every 12-18 months to live competitive. Furthermore, Calloway has acquired several firms since its orig ination in 1983 in order to expand its product breadth. Although in 2009, Calloway Golf Company was the second largest seller of drivers and fairway woods, revenues suck up line of descentd by 17% in 2009 compared to the first six months of 2008. Challenges facing this firm will be assessed in the bone analysis. SWOT Analysis for the golf industry, Calloway Golf &038 Recommendations See Appendix 2 for intercellular substance StrengthsCalloways technological innovation in making a driver that pushed the limits of USGA standards shows motive to become the best. Marketing to volunteer(a) golfers in an attempt to tending them enjoy the game more by offering an fortune to drive 6-10 yards further was a bench mark and pushed Calloways product to the best golf product of the century by a two-to-one margin. Calloways recognizable name in like manner gives them a competitive edge. Weaknesses Although these technological advances may realise salary increaseed sales, thither is sti ll slim evidence that these advances help golfers lower their scores. other weakness of the industry is sustainability. With the development of new-made products every 12-18 months, it is crucial that companies food market their products and convey strong sales shortly afterward introduction. Also, a weakness with Calloways golf balls was their brand image with the acquisition of Top-Flite golf balls, which quickly coined the game Rock-Flight. Opportunities Although sales have step-downd 5. 7% during 2008, continued marketing efforts and stay a household name could arouse beneficial to all firms after the recession has subsided.Due to the recession, discretionary spending has declined and savings has risen, but this could quickly change after a turn in the preservation. Furthermore, Calloway has tardily cut their endorsements of PGA overlords to only encompass 10 mens PGA professionals and 5 women. If they grow these numbers, it would give them more brand picture show a nd possibly higher revenues since many recreational golfers base their decisions on the type of equipment successful, professional golfers are using. ThreatsThere are a number of threats affecting the golf industry as a whole personal effects of technological limitations by USGA, a decline in the number of golfers due to the economy and lack of leisure time, and the rise of counterfeiting. The raise of the current economy paired with the decline in the number of golfers, has caused companies to focus more on price and volume. Counterfeiting is largely imputable to the decisions by executives to outsource for cheaper labor to producers in China who can produce a golf club for less than $3 per club. RecommendationsCompanies 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&038D department that tends to rem ain competitive with products and technology, there have been little results in summons 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 gingerly and aware so that counterfeiting may be centerd. 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 congresswoman of Calloway, an increase in marketing and endorsements would boost their sales due to brand recognition. Calloway has of late fallen to second place in the amount of sales of drivers.In aiding in cutting down on counterfeiting, lower prices, and increasing marketing and end orsements, Calloway may have the opportunity to reposition themselves as number one in the marketplace. Appendix 1 Calloway Timeline 1983- Ely Reeves Calloway, Jr. purchased a 50% spare-time activity in a Temecula, California manufacturer and marketer of hickory shafted wedges and putters for $400,000. 1985-Ely Reeves Calloway, Jr. , hired aerospace and metallurgical engineers to design the most technologically advanced golf clubs. 1991- Introduction of Big Bertha 1996- Acquisition of Odyssey (leading brand of putters)