Case #4: Competition in the Golf Equipment Industry in 2008
Competition in the golf industry in 2008 is incredibly fierce. This is due to the fact that there is a decline in the number of golfers and the number of rounds played. Golf is viewed by many as a recreational event, or in other words something to do for fun. As the recent economy has had a downturn the golf industry has reflected this. Golf on most consumers list has moved towards the bottom has disposable incomes and salaries decrease. The rise in counterfeit apparel has affected the golf industry greatly. Due to this decline in amount of golf played it obviously causes a decrease in golf equipment purchased. This has caused in increase in counterfeit clubs, bags, and other equipment. Overseas companies can produce cheap equipment that looks like the more expensive clubs but do not perform quite as well. Some say that you cannot tell a difference in this counterfeit clubs but an avid golfer should be able to notice a difference. Product differentiation is a large focus for many of the golf companies. For example Nike Golf has the driver with the adjustable head on it. This was revolutionary and everyone who follows golf wants to try it out. This caused other golf companies to follow in producing a driver with an adjustable head. The pace of rivalry is rapidly quickening because there are not as many purchases in the golf industry today. Due to fewer customers buying brand loyalty is extremely important and to do this you have to have reliable products. Having competitive intelligence helps give these companies an edge in the rivalry of gaining customers. 3.
The golf industry has been rapidly changing since Tiger Woods and other factors inspired many Americans to pick up the game of golf. At first when America saw a rise in the golf industry Americans were met with poor equipment that didn’t help their novice golf game. Many changes were made to all sorts of golf equipment. Golf balls were molded...
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