Business Strategy Essay

1549 WordsJun 8, 20157 Pages
4. How do the financial results of the major golf equipment manufacturers compare? Which rivals seem to be coping best with the competitive forces prevailing in the industry? How do the growth rates of golf’s major equipment manufactures compare? Have Callaway Golf Company and TaylorMade-adidas Golf found growth easier to achieve in some product categories than others? Golf is an industry characterized by strategic endorsements combined with appealing new technology to entice a fickle consumer base. The golf industry has been shrinking over the past few years; golf is decreasing in popularity. After a peak of golfers and rounds, a downward trend has occurred in 2007 17 million fewer rounds were played than in 2000. Callaway enjoys a reputation as one of the world’s leading manufacturers of high-end golf clubs and golf accessories. It places great emphasis on developing cutting edge technology. For example, Callaway was the first to mass-produce titanium drivers and composite drivers. This strategy has helped the company establish a strong product portfolio, including especially Big Bertha Drivers, X-series Irons, and White Hot putters. Callaway Golf (ELY) operates in the Sporting and Athletics Goods Manufacturing Industry segment (NAICS Code 339920). ELY’s operations are split into five primary segments: drivers, irons, putters, golf balls and accessories. TaylorMade-Adidas Golf Company is a manufacturer of golf clubs, bags and accessories based in Carlsbad, California, United States. It is a subsidiary of the German company Adidas Group. The participation of “core golfers” and rounds of golf played yearly drive the golf equipment sales. Core golfers are adult golfers who play eight or more rounds of golf per year and account for 87% of total domestic participation and 87% of total golf expenditures. The majority of core golfers are located in the Atlantic (35%

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