Golf Equipment

3847 words 16 pages
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CASE STUDY #4 1. What are the defining characteristics of the golf equipment industry? What is the industry like?
Even though golf had grown to be a sizable part of the U.S. economy, the golf equipment industry was faced with serious troubles in 2008. The convergence of a variety of serious hazards to the industry had caused the retail value of the golf equipment industry to decline from approximately $4 billion in 2000 to about $3 billion in 2003. Golf equipment sales had rebounded to an estimated $3.8 billion in 2007, but many threats to the industry continued to exist. The number of golfers in the United States had declined from 27.5 million in 1998 to 22.7 million in 2007. The number of rounds of golf played in the United States …show more content…

The golf equipment industry started changing when the industry centered on technological innovations of golf equipment products. The pace of rivalry are quickening and becoming more intense because there is limited to grow potential in this industry. The rises of counterfeiting in the golf equipment industry are the major threat to the industry. The counterfeiting was taking a hug portion of the market sales. Some infrequent recreational golfers might not concern much about counterfeit goods because of the very high difference in price.
New entrants are becoming a major threat in the industry. For example, Nike Golf launching Nike Golf club and using Tiger Wood’s endorsement.

3. How is the golf equipment industry changing? What are the underlying drivers of change and how might those driving forces change the industry?
The golf equipment industry has been changing drastically in the past decade due to technological advances and regulations placed upon the Professional Golfers Association (PGA) and other pro golf tournaments. The golf equipment industry was changing by 4 driving forces which are the regulation from USGA and R&A, the number of golf player and their frequency of playing, the counterfeit golf equipment and the last one is the touring professional endorsement contract fee.

a) The regulation from the united states Golf Association (USGA) and the royal & Ancient Golf Club (R&A)

These two

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