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COMPETITION IN THE GOLF EQUIPMENT INDUSTRY  IN  2008 KELOMPOK 4: Yudha Arisanto NIM.  E090261017 Juliana do Rego NIM.  E090271009 Thomas Yulianto NIM.  E090271015 Wiedy Giribaldi NIM.  E090271017 Wahyu NIM.  E080231016 Yosef Prihanto NIM.  E090271018
Sejarah Singkat Golf ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
E volusi  I ndustri  P eralatan  G olf ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Kondisi Lingkungan Eksternal Kategori Kondisi Ancaman/ peluang Politik & legal Peraturan  USGA dan R&A tentang golf equipment Banyaknya produk palsu  dipasaran Ancaman Ancaman Ekonomi Krisis Ekonomi  tahun 2008 Meningkatnya pendapatan di negara BRIC  Ancaman Peluang Sosial kulutural& demografi Kesehatan/ gaya hidup Kepedulian terhadap lingkungan Multirasial bintang golf Tiger Woods Penambahan jumlah  pegolf perempuan & yunior Peluang Ancaman&peluang Peluang Peluang Teknologi Teknologi  membantu untuk menyesuaikan kebutuhan pelanggan Logam baru/ campuran untuk lebih besar, dan lebih ringan Peluang Peluang
IDENTIFY INDUSTRY’S DOMINANT ECONOMIC FEATURES  Gambaran ekonomi Keterangan Market size dan growth rate 22,7 juta di US,  2 juta di Eropa,  17 juta di Asia (data 2007).  Number of golfers in America has declined 17%  since peak in 1998  (from 27.5  to 22.7 million) Number of rivals High end manufacture (Callaway, taylor made, Titleist,Ping).  Low end manufacture (Nike, etc).  Counterfait maufacture. Number of buyers 1/3 of golfers, about 7.5 million in US, considered “Core” and account  for 91% of rounds played and 87% of equipment sales Degree of product differentiation Drivers, Irons, Wedges, Putters, apparel, shoes, golf balls, golf bags Product Innovation The size of the driver increased to reduce the adverse effect of off-center hits Wedges were given more defined grooves to help improve accuracy on approach shots Balls were designed to provide  greater distance  Demand – supply conditions Demand fairly flat Distibution channel Three main distribution : pro shops, discounters or sport stores and online retailers.
[object Object],Units of Products Sold  (in millions) Golf Industry Sales Figures
But… ,[object Object],[object Object],[object Object],[object Object],Golf Industry Sales Figures
Golf Equipment Industry Product Mix 1997 2007 ,[object Object],[object Object],[object Object]
Porter’s Five Forces
Porter’s five force ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Threat of New Potential Entrants  Low level (3 dari10) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bargaining Power of Supplier ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bargaining Power of Buyer High level (8 dari 10) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Threats of Substitute Products Med level (6 dari 10)   ,[object Object],[object Object]
Rivalry among competing sellers  High level (7 dari 10) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STRONGEST VS WEAKEST? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SWOT Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Comparative Market Position High High Low Low ,[object Object],[object Object],[object Object],[object Object],[object Object],Nike & Other Low End Manufacture Counterfeit Manufacture Product  Retail  Price Product Innovation
Industry Key Success Factors Product  :  Be all things for all golfers.  All major brands offer a spectrum of products to match a golfers level, recreational to pro. Price:   Matched to level of product.  Comparable across industry.  Nike allows retailers to sell with low price Endorsements:  Significant source of differentiation and brand recognition. Innovation:  With the major brands having  met the regulated limits, innovation is focused on increased launch angles and adjustable features.  No significant innovations  because of the regulations.  Major brands are choosing to not go beyond the regulation specs. Operational:  Key production activities are often contracted offshore.  Major brands may just be an assembler.
Competitor Environment Analysis Competitor Strengths Weakness Callaway Product performance/ quality Technological innovation Market share Brand image Endorsement Taylor made Technological innovation Outsourcing production to Asia suppliers Titleist/ Cobra Product  performance/ quality Endorsement Low market share in other segmnet than gold balls Ping Product performance/ quality Customm fitting Market share Brand image Lack of variety of product line Nike Endorsement Financial position Product  performance/ quality Technological innovation Market share
STRATEGY OF MAJOR GOLF BRANDS Product Price Endorsements Innovation Callaway Diverse Drivers :  4 lines incl. Big Bertha Putters :  Odyssey and premium black series Irons :  X series (high end), Bertha, Hogan, Top Flite (low end) Other:  Fairway woods, hybrids, footwear, balls Diverse Well defined price ranges on driver, putter, iron lines. Tight price ranges on fairway woods and hybrids Low 12 Staff Pros 7 Contract Pros Medium Two Ball putter Perimeter weighted irons, prepositioned weights on drivers, interchangeable shafts Slow to react to changes in regulation and consumer preference (driver size and hybrids) Fortune (Titleist/ Cobra) Diverse but focused Focus on  Balls  and Footjoy  apparel .  Drivers, Woods, Hybrids, Irons:  Titleist line for pros and highly skilled rec.  Cobra for rec and game improvement. Putters:  Cameron (high end) and Cobra Diverse, well-defined High vs. low end Balls :  Pro VI to Pinnacle (value brand) Clubs :  Titlest, Volkey, Cameron vs. Cobra High 100 PGA pros to use V1 ball Medium Push limits of USGA regulations with Cobra L4V brand Perimeter weighted irons
STRATEGY OF MAJOR GOLF BRANDS Product Price Endorsements Innovation TaylorMade/ Adidas Diverse Drivers, hybrids , woods, Irons:   r7 and Burner lines Putters:   11 models Apparel :   Adidas Brand Balls:  Diverse Clubs:  r7 vs. Burner (low end Putters:  Why have 11 models in tight price range? High 70 Pros for driver, 11 clubs, apparel ,[object Object],[object Object],[object Object],[object Object],[object Object],Ping Diverse Irons:  4 lines Putters:  Large line including premium offerings Drivers, Hybrid Woods:  G10 and Rapture Diverse Clubs:  G10 vs. Rapture (low end) Low 20 PGA and 12 LPGA Medium -Fixed weights -Perimeter weighted irons Nike Diverse Clubs, balls, and apparel Club offerings not as diverse as competition Low High end irons only $600. Clubs often with low priced High Only 18 pros, but large financial commitment in Tiger Woods Medium - Driver pushes USGA regulation limits, but not much innovation elsewhere
Recommendations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recommendations cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you

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Golf equipment industry rev yosef final

  • 1. COMPETITION IN THE GOLF EQUIPMENT INDUSTRY IN 2008 KELOMPOK 4: Yudha Arisanto NIM. E090261017 Juliana do Rego NIM. E090271009 Thomas Yulianto NIM. E090271015 Wiedy Giribaldi NIM. E090271017 Wahyu NIM. E080231016 Yosef Prihanto NIM. E090271018
  • 2.
  • 3.
  • 4. Kondisi Lingkungan Eksternal Kategori Kondisi Ancaman/ peluang Politik & legal Peraturan USGA dan R&A tentang golf equipment Banyaknya produk palsu dipasaran Ancaman Ancaman Ekonomi Krisis Ekonomi tahun 2008 Meningkatnya pendapatan di negara BRIC Ancaman Peluang Sosial kulutural& demografi Kesehatan/ gaya hidup Kepedulian terhadap lingkungan Multirasial bintang golf Tiger Woods Penambahan jumlah pegolf perempuan & yunior Peluang Ancaman&peluang Peluang Peluang Teknologi Teknologi membantu untuk menyesuaikan kebutuhan pelanggan Logam baru/ campuran untuk lebih besar, dan lebih ringan Peluang Peluang
  • 5. IDENTIFY INDUSTRY’S DOMINANT ECONOMIC FEATURES Gambaran ekonomi Keterangan Market size dan growth rate 22,7 juta di US, 2 juta di Eropa, 17 juta di Asia (data 2007). Number of golfers in America has declined 17% since peak in 1998 (from 27.5 to 22.7 million) Number of rivals High end manufacture (Callaway, taylor made, Titleist,Ping). Low end manufacture (Nike, etc). Counterfait maufacture. Number of buyers 1/3 of golfers, about 7.5 million in US, considered “Core” and account for 91% of rounds played and 87% of equipment sales Degree of product differentiation Drivers, Irons, Wedges, Putters, apparel, shoes, golf balls, golf bags Product Innovation The size of the driver increased to reduce the adverse effect of off-center hits Wedges were given more defined grooves to help improve accuracy on approach shots Balls were designed to provide greater distance Demand – supply conditions Demand fairly flat Distibution channel Three main distribution : pro shops, discounters or sport stores and online retailers.
  • 6.
  • 7.
  • 8.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Industry Key Success Factors Product : Be all things for all golfers. All major brands offer a spectrum of products to match a golfers level, recreational to pro. Price: Matched to level of product. Comparable across industry. Nike allows retailers to sell with low price Endorsements: Significant source of differentiation and brand recognition. Innovation: With the major brands having met the regulated limits, innovation is focused on increased launch angles and adjustable features. No significant innovations because of the regulations. Major brands are choosing to not go beyond the regulation specs. Operational: Key production activities are often contracted offshore. Major brands may just be an assembler.
  • 20. Competitor Environment Analysis Competitor Strengths Weakness Callaway Product performance/ quality Technological innovation Market share Brand image Endorsement Taylor made Technological innovation Outsourcing production to Asia suppliers Titleist/ Cobra Product performance/ quality Endorsement Low market share in other segmnet than gold balls Ping Product performance/ quality Customm fitting Market share Brand image Lack of variety of product line Nike Endorsement Financial position Product performance/ quality Technological innovation Market share
  • 21. STRATEGY OF MAJOR GOLF BRANDS Product Price Endorsements Innovation Callaway Diverse Drivers : 4 lines incl. Big Bertha Putters : Odyssey and premium black series Irons : X series (high end), Bertha, Hogan, Top Flite (low end) Other: Fairway woods, hybrids, footwear, balls Diverse Well defined price ranges on driver, putter, iron lines. Tight price ranges on fairway woods and hybrids Low 12 Staff Pros 7 Contract Pros Medium Two Ball putter Perimeter weighted irons, prepositioned weights on drivers, interchangeable shafts Slow to react to changes in regulation and consumer preference (driver size and hybrids) Fortune (Titleist/ Cobra) Diverse but focused Focus on Balls and Footjoy apparel . Drivers, Woods, Hybrids, Irons: Titleist line for pros and highly skilled rec. Cobra for rec and game improvement. Putters: Cameron (high end) and Cobra Diverse, well-defined High vs. low end Balls : Pro VI to Pinnacle (value brand) Clubs : Titlest, Volkey, Cameron vs. Cobra High 100 PGA pros to use V1 ball Medium Push limits of USGA regulations with Cobra L4V brand Perimeter weighted irons
  • 22.
  • 23.
  • 24.