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Competition in the Golf Equipment Industry

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Competition in the Golf Equipment Industry in 2009
Karina Diamond

2012

Strategic Management
3/14/2012
Competition in the Golf Equipment Industry in 2009
Karina Diamond

2012

Strategic Management
3/14/2012

Table of Contents

Question One 2 * Details of the characteristics of the golf equipment industry
Question Two 4 * Includes Michael Porter’s Five Forces Model

Question Three 7 * Discussed the competitive weapons used by rivals

Question Four 9 * Looks at the drivers of change within the industry

Question Five 11 * Key success factors

Question Six 13 * Financial Statement Analysis

Question Seven 15 * Recommendations

Conclusion 18

Appendices 19 * Includes a breakdown of Financial Analysis

References 22

What are the defining characteristics of the golf equipment industry? How would you characterise the state of the industry? The sport of golf has a long and regal history. Televised tournaments in the fifties and sixties in America meant that more people became interested in the game. The golf equipment industry in 2009 is in the middle of a crisis with the number of players stalling and the sales of equipment declining since 2006. The industry is defined by endorsements, branding, technological advances and regulation. The industry is currently in a state of decline. The recent recession and the onset of regulations from the USGA and the Royal and Ancient society have had a negative impact on the golf equipment industry. Political/Regulatory The increase of counterfeit items available and their easy availability shapes the industry greatly. It also shapes the relationship between the rival companies. They were able to form an alliance to take a major stance against this issue and

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