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 Ellwood fall by 2. %, the worst since the World War Ill . Otherwise stated, the U. S. And Japan market is analyzed as they -in 2014 make up 70% of the global golf retail markets. The financial crisis in 2009 resulted in the decrease of power of purchase in the US, as depicted in the below graphic, proxies by its consumer price index. Figure Historical U. S. And Japan ICP showing decreases in year 2009. Source: retaliation. Com In a surveys, 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.
Competition in Golf Equipment Industry in 2009 By mastitis Galloway Golf One good shot is not enough, so let’s play golf To be a world class organization that design, makes, and delivers demonstrably period 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 ?