Business Essay

553 WordsMay 3, 20123 Pages
Competition in the Golf Equipment Industry in 2009 Even though there are less percentage of consumers purchasing golf clubs and playing a round a golf; companies are still competitive with golf club equipment. I will use Porter’s Five Force Analysis to prove that the golf club industry will still have competition in 2009. Firms in other industries offering substitute products, buyers, and potential new entrants, suppliers of raw materials, parts, components, or other resource inputs, and rivalry among competing sellers are Porter’s Five Forces that will help me make my case. The first force is industries offering substitute products. The golf club industry is getting competitive pressures from many different sports and products. Golf may be one of the oldest and maybe the first sport to ever exist but it is certainly not the most popular. If you are not a golfer than you may not know that you have to pay every time you want to play a round of golf. Consumers can make a one-time purchase of a basketball, baseball, soccer ball, or football. Then the consumer can play that sport as much as they want for no charge. During 2009, the economy will not get any better which means people won’t have the money to spend to play a round a golf. It is a lot cheaper to switch to a substitute sport. With technology innovation it has made the bargaining from seller to buyer much easier. Customers can use websites such as EBay or Amazon to purchase golf clubs which means the companies of that product aren’t getting money but the seller is making money and their used products. Also customers are switching to cheaper golf club products to save money. Potential new entrants are definitely low. There are so many name brands that customer are loyal to. A new entrant wouldn’t have the money to have a celebrity endorsement and all large golf club industry have a huge PGA

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