Golf Industry Case
Golf Industry 2009 Case Analysis
Michael George
Central Michigan University
MGT 495 Section #2216221
Table of Content
1.Introduction page 1
2.Five Forces of Competition pages 1-4
3.Driving Forces page 4
4.Strategic Map page 5
5.Conclusion page 5
6.Biography page 6
1
Introduction
In this case study we look at the golf equipment industry in 2009 and its driving forces that affect the competition amongst its leaders. The companies examined in the study are Callaway Golf, TaylorMade-Adidas Golf, Titleist/Cobra Golf, Ping Golf, and Nike Golf. We will examine the competitive forces being dealt with by these companies, the driving forces that are affecting the industry, and the attractiveness of the industry to these existing companies and other potential entrants.
Five Forces Analysis of Competition
-Rivalry Among Competing Sellers(Gamble 2011 pp.53-57) The rivalry among the 5 competitors in the golf equipment industry detailed in the case study is based primarily upon technological innovation, product performance, brand image, tour exposure, and price(Gamble 2011, p.288). The opportunities to create competitive differentiations by innovations in golf club head design have been capped and limited by initiatives put in place by the USGA through the 1990’s and 2000’s that restricted continued improvement in “spring-like” effects and larger “sweet spots” that enabled golfers to hit better driver shots more often(Gamble 2011, pp283-286). There were also limitations put in place by the USGA that capped innovations in golf ball design and wedge grinding that restricted the spin of the ball(Gamble 2011, pp285-286). These restrictions worked to cap the technological innovations that allowed companies such as
2
Calloway and TaylorMade-Adidas to gain market share and brand recognition by continuously updating the equipment used by the Tour pros and sold in pro shops. The product performance that affects the
Michael George
Central Michigan University
MGT 495 Section #2216221
Table of Content
1.Introduction page 1
2.Five Forces of Competition pages 1-4
3.Driving Forces page 4
4.Strategic Map page 5
5.Conclusion page 5
6.Biography page 6
1
Introduction
In this case study we look at the golf equipment industry in 2009 and its driving forces that affect the competition amongst its leaders. The companies examined in the study are Callaway Golf, TaylorMade-Adidas Golf, Titleist/Cobra Golf, Ping Golf, and Nike Golf. We will examine the competitive forces being dealt with by these companies, the driving forces that are affecting the industry, and the attractiveness of the industry to these existing companies and other potential entrants.
Five Forces Analysis of Competition
-Rivalry Among Competing Sellers(Gamble 2011 pp.53-57) The rivalry among the 5 competitors in the golf equipment industry detailed in the case study is based primarily upon technological innovation, product performance, brand image, tour exposure, and price(Gamble 2011, p.288). The opportunities to create competitive differentiations by innovations in golf club head design have been capped and limited by initiatives put in place by the USGA through the 1990’s and 2000’s that restricted continued improvement in “spring-like” effects and larger “sweet spots” that enabled golfers to hit better driver shots more often(Gamble 2011, pp283-286). There were also limitations put in place by the USGA that capped innovations in golf ball design and wedge grinding that restricted the spin of the ball(Gamble 2011, pp285-286). These restrictions worked to cap the technological innovations that allowed companies such as
2
Calloway and TaylorMade-Adidas to gain market share and brand recognition by continuously updating the equipment used by the Tour pros and sold in pro shops. The product performance that affects the