Competition in Golf Equipment Industry in 2009 free essay sample

In 2009, the world had seen an economic downturn all over the year. In January, Danish Parliament agreed to a financial package worth 17. 6 billion USD. In response, markets panicked. At the same time, four US banks had lost half of their values since three weeks ago. Down Jones Industrial Average Index had dropped more than 50% from its October 2007 peak. On March, Bank of England provides 150 billion pounds of quantitative easing, increasing risk of inflation. On June, World Bank projected that global production for 2009would fall by 2. 9%, the worst since the World War II1. Otherwise stated, the U. S. and Japan market is analyzed as they –in 2014 make up 70% of the global golf retail market2. The financial crisis in 2009 resulted in the decrease of power of purchase in the US, as depicted in the below graphic, proxied by its consumer price index. Figure Historical U. S. and Japan CPI showing decreases in year 2009. We will write a custom essay sample on Competition in Golf Equipment Industry in 2009 or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Source: rateinflation. com In a survey3, more than 50% of respondent quit playing golf because they think it is too expensive. Now the logics are, global economy downturn caused many previously-active-golf-players quit the game. Consequently, consumer purchases of golf supply/equipment declined by 16% compared to 20084. The drop in sales, forced major golf equipment manufacturer review their business strategy. From changing business model, improve the golf equipment technology and features, looking for niche market, and so on. Figure Consumer spending on golf equipment In the next section, strategic analysis is conducted. It comprises discussion on the manufacturer business model, competitive advantage, vision-mission statement, and how they changed course of business strategy. The next section will discuss external environment of golf equipment business and analyze its dominant economy characteristic, Porter’s competitive forces, rivals, and strategic map. Last section would brief conclusion on the golf equipment competition in 2009. STRATEGIC ANALYSIS WHAT IS EMERGING BUSINESS MODEL BEFORE AND AFTER 2009? WHAT IS THEIR COMPETITIVE ADVANTAGE? VISION-MISSION COMPARED COMPANY VISION MISSION REMARKS Callaway Golf One good shot is not enough, so let’s play golf To be a world class organization that design, makes, and delivers demonstrably superior and pleasing different golf products that incorporate breakthrough technologies, backs those products with noticeably superior customer service, and generates a return on the shareholders in excess of the cost of capital. We share every golfer passion for the game, and commit our talents and our technology to increasing the satisfaction and enjoyment all golfers derive from pursuing that passion ? Acushnet To serve the needs of the serious and recreational golfer with value added products and services that have a competitive advantage worldwide ? TaylorMade-Adidas To have the leading performance golf brands in the world ? Nike To bring inspiration and innovation to everybody in the world Too broad. Could apply to many companies in many industry HOW THE COMPANY STRATEGY CHANGED DURING 2009 CRISIS? IS THERE ANY GCG APPLIED IN THE COMPANY? External Environment 1. What are the industry’s dominant economic characteristic Apa? 2. What kind of competitive forces are industry members facing, how strong? Masukkan Porter’s Five Forces disini. 3. What market position do industry rivals occupy, and what is their next move? Figure Comparative Market Position. Bubble size represents number of product sale5 Analisisnya apa? 4. What are the key factors for future competitive success? Analisisnya apa? 5. What are the company’s external opportunities and threats? Analisisnya apa? CONCLUSION Be comprehensive, and make sure they are in line with the previous analysis so that the recommendations fit together and move logically from one to the next. The recommendations section is very revealing because, as mentioned earlier, your instructor will have a good idea of how much work you put into the case from the quality of your recommendations.