The defining characteristics of the golf equipment industry are innovative technology and name brand recognition, and product performance. Golf companies essentially sell the same products, so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years.
The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts; golf, things such as green fees and memberships, and sporting goods, things such as clubs, balls, bags, shoes and gloves. Golf companies usually gain brand recognition by hiring professional golfers to promote their products because this can be one of the most effective forms of advertising for a company.
Companies are also focusing on creating new products for recreational players. 2. Competition is fierce in the golf industry, especially since growth is slowing. Major players in the industry include strictly golf- focused companies such as Callaway and TaylorMade, and Titleist. Companies such as Nike and Addidas also hold a large market share of the golf industry. Golf club manufactures rely heavily on endorsements from touring professionals, and competition to sign these big name players is also fierce.
Companies now also have to ompete against counterfeit good that are sold in countries around the world. Counterfeit clubs are considered a threat to the industry since good counterfeits are nearly exact copies of legitimate products that are sold at much lower prices. 3. The golf equipment industry has been changing drastically in the past decade due to new technological advances and regulations put in place by the USGA. The industry also has to keep up with market conditions and must face the fact that not as many people are golfing as much as they used to.