An Analysis of “Competition in the Golf Industry”
It is unknown when the game of golf originated, but it is believed that people began playing in Europe during the middle ages. In the United States, golf was a sport primarily played by the wealthy individuals until tournaments began being televised. Since then, golf has grown to be a very lucrative industry with over 27 million golfers nationwide by the end of the 1990’s. “Competition in the Golf Equipment Industry,” a case study written by John E. Gamble of the University of South Alabama, is an overview of the problems currently facing major companies in the golf equipment industry: technological limitations (due to golf’s governing organizations), a decline in the number of golfers, and the economic recession, and the threat of counterfeit products. These limitations are causing leading competitors in the golf industry, namely Calloway Golf, to rethink their strategies in 2010. PLAC Analysis for Calloway Golf
Ely Reeves Calloway Jr., Calloway’s 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 across the golf equipment industry. Calloway Golf now encompasses drivers (with the introduction of Big Bertha), putters (with the acquisition of Odyssey), irons (designed to compete against Titleist), golf balls (with the acquisition of Top-Flite), footwear and clothes branding, and GPS units (with the acquisition of UPlay). See Timeline in Appendix 1.Calloway has differentiated itself from its competitors by its innovation, beginning with the success of their driver, Big Bertha, which initiated the technology race among firms. Calloway and its’ competitors introduce more innovative products every 12-18 months to remain competitive. Furthermore, Calloway has acquired several firms since its origination in 1983 in order to expand its product breadth....
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