US Golf Equipment Industry

Content

1. Introduction 1.1 Industry Definition US Golf equipment industry includes establishments engaged in design, manufacture and/or marketing of golf clubs, golf balls, tees and other accessories. 1.2 Industry Segments Golf Clubs Golf Balls Golf Accessories Tees 2. Market Dynamics 2.1 Market Overview The US golf equipment industry has experienced modest growth in recent years, with real consumption growing by 3% annually during the period 2000 to 2005. 2.2 Trend Analysis Rise in Exports Continuous Research and Development Higher Playable Hours Drive Equipment Sales Advertising Expenditure on the Rise Decline in the Construction rate of New Golf Courses 2.3 Key Drivers Increasing Participation Favorable Demographic Trends New Products Pushing Sales Increasing Demand from Non-US Markets Celebrity Endorsements Drive Growth 2.4 Major Issues and Implications Counterfeit Products Restrictive Government Policies 3. PEST Analysis 3.1 Political Factors Conformance with the Rules of the Game Intellectual Property Issues Government Policy on Outsourcing 3.2 Economic Factors Rise in Disposable Income Rising Interest Rates Tighten Availability of Funds to Industry Negative Savings Rate 3.3 Social Factors Ageing Population Indulgence of Baby boomers in Golf Growing Female and Junior Participation 3.4 Technological Factors Increasing Use of Software Use of Nanotechnology in Designing Golf Equipments Increased Use of E-Commerce 4. Michael Porter's Five Forces Analysis 4.1 Buyers Power Fragmented Retail Market 4.2 Suppliers' Power Customization Increases Switching Costs Chinese Compeetition to Local Suppliers Suppliers Dependence on Volume Purchases by Players 4.3 Intensity of Competition New Product Development Patent Issues M&A is the Key 4.4 Threat of New Entrants Large capital Investment Requirements Brand Conscious Customers USGA Restrictions 4.5 Threat of Substitute Products There are no substitutes to golf equipments. 5. Competitive Landscape 5.1 Competitive Profiles and Competitive Positioning Callaway Golf Company Fortune Brands Taylormade-Adidas Golf Adams Golf Inc. 5.2 Competition Strategies Callaway Product Innovation Focus on Pre-Owned Golf Clubs Advertising and Promotion Fortune Brand Establishment and Cost restructuring Acquisitions and Joint Ventures Adidas New product Development Reebok integration Promotion Partnerships as Long-Term Success Factor Own Retail AdamsGolf Selective Retail Distribution Marketing Strategy Focus on patents 5.3 Financial Analysis 5.3.1 Income Statement Analysis 5.3.2 Balance Sheet Analysis 5.3.3 Other Valuation Multiples 5.4 Stock Market performance 6. Industry Outlook Appendices Appendix 1 Industry Associations and Organizations Appendix 2 International conferences and Meetings List of Tables/Figures Figure 1.1 Industry Segmentation Figure 2.1 Golf Equipment Sales in US (2003-2005) Figure 2.2 US Spend on Different Segments of the Golf Industry (2002) Figure 2.3 Net Sales of Major Players (2004-2005) Figure 2.4 Export of Golf Equipment from US (2000-2005) Figure 2.5 Research and development Expenditure of major Players (2003-2005) Figure 2.6 Golf Club Sales in US (2002-2005) Figure 2.7 Total US Golfers (1970 to 2004) Figure 2.8 Golf Rounds Played (1970 to 2004) Figure 2.9 Population Shifts by Age (2000 to 2010) Figure 3.1 Total Adult Female Golfers in US (1996 to 2004) Figure 3.2 Total Junior Golfers in US (1996 to 2004) Figure 5.1 Revenues (2004-2005) Figure 5.2 Net Income (2004-2005) Figure 5.3 Profitability Ratios (FY05) Figure 5.4 Liquidity Ratios (FY05) Figure 5.5 Debt/Equity (FY05) Figure 5.6 Performance Ratios (FY05) Figure 5.7 Activity Ratios (FY05) Figure 5.8 Stock Chart (June 2005 May 2006) Figure 6.1 Golf Equipment Sales in US (2000-2006E) Figure 6.2 US Golf Equipment Shipments (1999, 2004, 2009E) Table 2.1 Equipment Spending by different Age-groups Table 5.1 Competitive Positioning