...1. Discuss the trends in the golf equipment industry and how it may impact a company’s strategy. Ans: According to new the United States Golf Association (USGA), Golf equipment manufacturers are forced to launch the equipment within the limitation. Therefore, the product differentiation is not quite high while recreational golfers do not enjoy playing due to lack of innovational equipment. Also, the USGA states that there are various factors that result in the declining of golfers such as: - Game difficulty: Golf equipment manufacturers are forced to follow the new USGA rules, thus, recreational golfers are suffered from the limitation of golf equipments. They cannot enjoy playing golf as much as before while new golfers face the difficulty of playing. - Time consuming for practice: According to the limited innovation of golf equipment, golfers need lots of time to practice while they also have take responsibility to their job and spend time with their families. - High golf fee: Some golfers realize that golf fee is high, as a result, they cannot practice frequently. 2. Discuss the importance of innovation, brand, performance, and price in the golf equipment industry. Ans: Good reputation and image can lead to brand loyalty. That’s why many brands use lots of advertising expenditure to promote their brands. As the leading sports brand in the world, Nike has a clear marketing advantage over its competitors. Nike spends some of their annual revenues on advertising...
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...What are the defining characteristics of the golf equipment industry? Defining characteristics for the golfing industry focus mainly on innovative technology and name or brand recognition. Golf companies essentially sell the same products, so they need to differentiate their products through technological advances such as size, weight, swing velocity, and distances. Research and development is essential to any golf company wanting to stay ahead of competitors. Fortunately for them, golf as a sport attracts mostly upper middle class to wealthy consumers of the economy so the industry can focus on quality with the assurance of high-end sales. Unfortunately for them, because of the expense of golf, when the economy falls, so do sales of golf equipment. Due to the maturity of the market, golf companies are turning to different aspects of the economic market instead of focusing only on clubs and golf balls. International interest in the game of golf has helped to turn the maturing sport into higher profit margins when adding overseas sales, and a new focus on younger generations (and ultimately their large amounts of disposable income available to them through credit cards) has helped to promote the sport to confirm long-range interest in the golf equipment market. Golf companies commonly gain brand recognition by hiring professional golfers to promote their products because testimonials by well-known golfers can be one of the most effective forms of advertising for a company....
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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...
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...CASE 3: COMPETITION IN THE GOLF EQUIPMENT INDUSTRY 2009 Background There is no exact date as to when the game of Golf came into existence. The first known reference of golf was made in 1452. Golf has come into its own during the early 1950’s and 1960’s. The game was televised in America, which ultimately meant that more and more people would become exposed to the game. During the late 1990’s.it was estimated that more than 27 million Americans were playing golf. However, between 1998 and 2008, the number of people playing golf had declined from 27.5 million to 25.6 million players. 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. 1. The industry is defined by endorsements, branding, technological advances and regulation. - Endorsements – Leading golf brands have always struck endorsement deals with leading golf players. The value of the endorsements has increased significantly since 2000. During the 1990’s top players were receiving between $250 000 - $400 000. By 2007, the top golfers were earning at least $4 million. Tiger Woods has earned more than $80 Million in endorsements in 2009 alone. - Branding – Golf is characterized by brands such as Nike, Callaway, Titleist, TaylorMade, Cobra, Ping, and so forth. - Technological advances – Golf clubs today can hit a golf ball approximately 265m...
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...Steel vs. Graphite – What’s the Best for Club Shafts? Golfers who play close attention to their playing equipment know that there is a persistent debate out there: steel vs. graphite. Which one is best for club shafts? Here is an overview of the steel vs. graphite debate and what need to know if to choose between these two options. Steel or Graphite? Which One Will it Be? What is the difference between steel and graphite, and why should you care? Is one inherently better than the other? When it come to most golfing equipment, it depends on your personal preferences, your skill level, and your typical golfing environment, among other factors. Shopping for New Golf Clubs – the Steel vs. Graphite Question Many newcomers to the sport of golf may find themselves faced with this question. There is some common wisdom about the steel vs. graphite debate. Traditionally, it was believed that graphite shafts work best for mid to high handicap golfers, and most casual, recreational golfers. However, this bit of common wisdom is no longer quite true. It is now easy to observe many PGA Tour professional golfers using graphite club shafts. In fact, it was a big deal with even Tiger Woods, back in 2004, began to use a graphite shaft in his driver. However, at that time many professional golfers had already made the transition from steel to graphite golf shafts....
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...Decision on Amending the Rules for the Formation of Securities Companies with Foreign Shareholders I. Article 10 is amended to read: “The shareholding of foreign shareholders or the stake of foreign shareholders in a securities company with foreign shareholders shall not exceed 49% cumulatively (including direct shareholding and indirect control). “The shareholding or stake of one domestic-funded securities company at a minimum among domestic shareholders in a securities company with foreign shareholders shall not be lower than 49%. “After a domestic-funded securities company is changed into a securities company with foreign shareholders, the shareholding of one domestic shareholder at a minimum shall not be lower than 49%.” II. Paragraph 1 of Article 25 is amended to read: “Foreign investors may legally hold shares in a listed domestic-funded securities company through securities trading on a stock exchange or hold shares in a listed domestic-funded securities company with the approval of the CSRC by establishing a strategic partnership with the listed domestic-funded securities company, and the approved business scope of the listed domestic-funded securities company shall remain unchanged. The restriction that the shareholding of one domestic shareholder at a minimum shall not be lower than 49% shall not apply to the listed domestic-funded securities company provided that its controlling shareholder is a domestic shareholder.” III. Article 27 is amended to read:...
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...characteristics of the golf equipment industry? What is the industry like? The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. 2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? There has been a great advancement in the equipment technology. Despite these advances in equipment, the average handicap according to the United States Golf Association for both males and females has not changed much. With the improvement in equipment and a wide...
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...Altius Golf is one of the leading produces of golf balls. Since the 2008 recession the company has yet to recover their revenues. However, the overall market for golf balls has increased in sales 4.1% in 2012 but continues to fall short of pre-recession records. There are several factors that play a role in the decrease in Altius financial position. Consumer spending has decreased significantly since the 2008 recession that further implicates the struggle with continued interest in golf as a sport with decreasing interest since 2003. With the decrease in golf participants there is a significant imbalance of supply and demand for golfing equipment impacting all production companies. The new strategy Altius is using to introduce the Fighter Brand is both promising but also imposes possible problems. The approach Evelyn is presenting focuses on some of the main problems facing the golf equipment industry including providing lower cost but high quality golf balls to consumers. However the population in which the strategy focuses on is at a higher risk for market losses. Altius would be changing their targeted population from on-course to off-course golfers and as a result their competing market. Because Altius is known as a leader in golf ball production for high quality and high prices balls they would essentially be demoting themselves in the industry. The research indicates a difference in sales from on-course and off-course in both shares and dollars. Essentially...
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...$1,200 in 1995. I remember it like it was yesterday. He loved that old truck. He spent more money fixing it than the truck was actually worth. The Ford was a kind of silver/grey color with two black stripes down the middle. It had a big dent above the left rear wheel that occurred when a drunk driver side swiped it while stopped at a red light. The truck’s bed was mostly full of my granddad’s golf equipment and covered by a black plastic truck bed cover. The golf gear was not arranged or organized in any way, only he could find what he was looking for any given time. There were always empty golf ball boxes piled up on the bed of the truck. Underneath the boxes, one could find the golfing equipment. Once I got inside of the cabin, I entered a whole different world. The door on the driver side wouldn’t open at times and I would have to go in through the passenger side door. Most of the time the passenger side was full of newspaper clippings, empty bottles, cans, 2 pairs of golf shoes and a pair of sandals. Inside the cabin, it usually smelled like dirt and grass. My grandfather played golf for a living, not in the PGA or anything like that, but he always managed to make enough money to support his family. Once I finally got past the odor. I proceeded to insert the key and hoped it would start. Sometimes it did nothing, but my Grandfather told me that this could happen and he said I had to keep trying until I could get it to start. So I continued to crank the engine a more times...
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...The external environment of Altius Golf consists of: the golf industry, its competitors, regulatory bodies such as United States Golf Association (USGA) and the golf players. External environment includes some opportunities as well as threats for Altius Golf which is discussed below: Opportunities Growth in industry has just restarted after a period of recession; hence this is an opportunity for Altius Golf to acquire the market share of reviving golf industry. Moreover, recent consumer study carried out by the United States Golf Association (USGA), has revealed that high cost of golf equipment is one of the reasons for the lack of interest in golf sport, however; Altius Golf can capture the market growth by offering low-cost golf balls to its consumers through off-course outlets. Additionally, the USGA has introduced “Tee it forward” movement, to make the golf game easy, moreover; USGA has introduced “Golf 2.0” program, which allow the new golfers to play 12-hole tournament instead of 18-hole and use larger holes, therefore; this step of USGA will induce more new golf players that is an opportunity for Altius Golf to gain increased market share of new players. Threats Because of the recent recession period, consumers of golf equipments have cut-down their spending on golf balls and this trend has badly affected the golf industry. Additionally, USGA regulatory requirements are very strict in terms of size, shape and material of the golf balls, which may affect Altius Golf’s...
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...Assignment Questions - Golf Q 1. What are the defining characteristics of the golf equipment industry? What is the industry like? A 1. The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. Golf companies usually gain brand recognition by hiring professional golfers to promote their products because this can be one of the most effective forms of advertising for a company. Companies are also focusing on creating new products for recreational players. For any company who wants to enter into this market would require significant amounts of investment. Q2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive...
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...a retail store that specializes in the distribution of golf supplies to the everyday recreational golfer. The Golfsmith chain operates with 75 retail stores in 21 different states providing not only golf but tennis equipment as well. Carl Paul founded Golfsmith in 1967 with the intention to create a retail service that helped golfers improve their games with custom club fitting as well as market all sorts of equipment in the golf industry. The golf industry is a large one where technology is always evolving along with the techniques and strategies to being a successful golfer. Golfsmith is one of the few chains that can cater to the various needs of golfers throughout the country. The chain defines its core purpose as “To inspire people to play better and live life more.” The golf market is more of an exclusive one compared to other sports such as basketball or football. Golf is a sport more played by wealthier consumers that reside in suburban neighborhoods. Therefore the marketing strategies of a chain such as Golfsmith can be narrowed down to specific demographics. About 85% golfers tend to be white males that fall into the age 18-65 ranges. Over half of the golf consumer market are some sort of manager, professional or executive and have some sort of college degree. The average household income for a golf consumer is over $80,0000. Also, 90% of them tend to be homeowners. These statistics show that golf is an expensive sport played by the more wealthier and...
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...Club Fitting, The Importance Of Page Break Impossible; it is impossible for a golfer to maximize the potential without two key components. First component is understanding how to properly position and accurately move to body. Simply having an understanding of the fundamentals of golf and the ball flight laws will not give any golfer the best possible opportunities to succeed. Knowledge of what the body does during the golf swing and how to maximize the potential of those body parts will allow the coach and golfer to assess and train for maximum performance. While possessing these fundamentals will increase the ability of the golfer to make their best possible swing, maximum potential can't be reached if the perfect swing is swinging incorrect equipment. Proper and accurately fit equipment is the second and equally important key to maximizing potential and player ability enhancement. (1)"Fitters say the reason a lot of people hit it sideways is because they haven't been custom-fit. Trying to figure out the swing with clubs whose length, weight, lie angle, shaft flex or grip size don't match the body encourages players to make unnatural compensations that prevent them from developing proper mechanics." Meeting with and interviewing the potential student or fitting client will allow the fitter to have the most accurate ability to assess what the client can and can't do. Physical disabilities will effect what the golfer can do and what the fitting professional should...
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... STUDENT NO: 140201038 LAB SECTION: OTHER EXPERIMENTER: FULL NAME: EDA HAZAL RAŞİT STUDENT NO: 140203009 EXPERIMENT PERFORMED ON: 30/09/2015 REPORT SUBMITTED ON: 07/10/2015 EXPERIMENT 1: The Relationship between Time of Flight and Initial Velocity Equipments: 1. Projectile launcher 2. Time-of-Flight Accessory 3. Xplorer GLX (as timing device) 4. Yellow Nylon Ball (2.5 cm diameter, 10 g) 5. Photogate 6. Photogate bracket 7. Carbon paper 8. White paper 9. Measuring tape 10. Duct tape Purpose: Purpose of this experiment is to Procedure: I have equipment to measured the fall time and I have different ball. This lesson was my first LAB so I didn’t know anything about equipments and teacher have thought equipments. After that, we make a group and we have started. We started the experiment by connecting material such as control box, drop box and AC adapter. After, I set the h=1,50. This distance between the bottom of the ball and the time of flight accessory. It is very important because if we didn’t calculate truely, we could find wrong results again. However,...
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...Sinclair Company is considering the purchase of new equipment to perform operations currently being performed on different, less efficient equipment. The purchase price is $250,000, delivered installed. Sinclair production engineer estimates that the new equipment will produce savings of $72,000 in labor and other direct costs annually, as compared with the present equipment. She estimates the proposed equipment's economic life at five years, with zero salvage value. The present equipment is in good working order and will last, physically, for at least five more years. The company can borrow money at 9 percent, although it would not plan to negotiate a loan specifically for the purchase of this equipment. The company requires a return of at least 15 percent before taxes on an investment of this type. Taxes are to be disregarded. Main Problem: Should we replace existing equipment with more efficient, newer equipment? Brief Action Plan: I. Rate of return (cost saving - depreciation/ Initial investment) = 72, 000 - 50,000* 22,000 8.8 % = = 250,000 250,000 *250,000/5 years= $50,000 per year Although numbers are just a guide to the overall impact, considering the purchase of new equipment to perform operations currently being performed under less efficient equipment would belly a rate of return of 8.8 % which is below...
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