Golf and Permanent Time Holders
Case Study Findings
Exercise 1:
Based on the following information, what are your conclusions regarding?
* Is the market over or undersupplied? * Undersupplied * If so, by how much? * Within 10 minutes there’s 5,004 people per 18 holes * Within 20 minutes there’s 4,818 people per 18 holes * Within 30 minutes there’s 3,814 people per 18 holes * Are the age, income, ethnicity, and population density conducive to golf? * Yes, the area that the course is located at yields a high income average compared to the U.S. average. * 73.4% of the population that play golf are Caucasian within 10 minutes. Only increases to 77.7% within 20 minutes * I feel we are at a disadvantage though because the average age is 37.6 within 30 minutes. * Which of the characteristics reflects the greatest strength or weakness in the market? * Some of the strengths in the market are: that the population in the area has a higher income rate and within 10 minutes the ratio of people per holes is 30,024 to 108. * One of the weaknesses is that the average age is 37.6 which would decrease the amount of players during normal business hours. * Based on the conclusion, what is your preliminary conclusion regarding the green fees charged versus the customer demographics? * 50% of the courses within 10 minutes charge less than $40 and the customer demographics would show that the average person could afford to pay a higher premium for a round of golf but doesn’t necessary mean that they will pay that higher fee. * At a first glance, should one of the courses be closed or is renovation of one or both courses desirable? * Yes, the Wind Couse should be closed due to the fact is has too many problems and would be too expensive to renovate. Renovation of the Earth Course would be a great idea because that course already brings in an average of 42,946 rounds per year and with a little work could increase that number.
Exercise 2:
Exercise 1:
Based on the following information, what are your conclusions regarding?
* Is the market over or undersupplied? * Undersupplied * If so, by how much? * Within 10 minutes there’s 5,004 people per 18 holes * Within 20 minutes there’s 4,818 people per 18 holes * Within 30 minutes there’s 3,814 people per 18 holes * Are the age, income, ethnicity, and population density conducive to golf? * Yes, the area that the course is located at yields a high income average compared to the U.S. average. * 73.4% of the population that play golf are Caucasian within 10 minutes. Only increases to 77.7% within 20 minutes * I feel we are at a disadvantage though because the average age is 37.6 within 30 minutes. * Which of the characteristics reflects the greatest strength or weakness in the market? * Some of the strengths in the market are: that the population in the area has a higher income rate and within 10 minutes the ratio of people per holes is 30,024 to 108. * One of the weaknesses is that the average age is 37.6 which would decrease the amount of players during normal business hours. * Based on the conclusion, what is your preliminary conclusion regarding the green fees charged versus the customer demographics? * 50% of the courses within 10 minutes charge less than $40 and the customer demographics would show that the average person could afford to pay a higher premium for a round of golf but doesn’t necessary mean that they will pay that higher fee. * At a first glance, should one of the courses be closed or is renovation of one or both courses desirable? * Yes, the Wind Couse should be closed due to the fact is has too many problems and would be too expensive to renovate. Renovation of the Earth Course would be a great idea because that course already brings in an average of 42,946 rounds per year and with a little work could increase that number.
Exercise 2: