Question 4

What does your strategic group map of the golf equipment industry
look like? Which strategic groups do you thing are in the best position?
Which are in the worst position
Golf equipment industry includes all organizations that produce and sell
equipment necessary for golfer to practice golf, as discussed earlier the
industry started to be enter the maturity stage with declining demands on
the product offerings. Recently the industry is having Five key players who
dominate and keep pursuing consolidating it through Horizontal integration,
those Five key players are offering wide range of products from different
segments that was discussed earlier. Yet other small companies still exist in
the market that offers low-end products. In total I managed to figure out 45
manufacturers in the golf equipment industry which could be seen in the
appendix
Accordingly, Golf Equipment Industry can be classified into 3 Major strategic
Groups
1- High-End Manufacturers: Manufacturers providing High Quality
Products with High Prices to professional golfers
2- Low-End Products: Manufacturers providing Low Quality Products
with Low Prices to amateur golfers
3- Counterfeiters
the

companies

mentioned

in

the

case

were

examined

and

their

characteristics showed that they are all offering high quality products with
high prices except Nike which are still charging high prices but their quality
did not meet the quality of others

Callaway, TaylorMade, Fortune and Ping are all located within one strategic
group (high end manufacturers) competing directly with each other to attract
the same market segments.
On the other hand, Nike Golfs position in the industry is located near the
low-end manufacturers
The below graphs shows the strategic map for the Golf Equipment Industry