Kevinshahk95

Critical Analysis

The current situation in golf apparel and equipment industry shows many of Altius’ competitor’s gaining market share in off-course markets. The competitors are moving according to the current market by innovating and targeting new audiences. They are doing this by fighting the stigma of golf being a difficult and expensive sport. New golf equipment’s which are easy to use and make hitting good shots easier are being provided by competitors like Meridian and Primiera. Altius, on the other hand, is concentrating only on golf professionals. Which would have been profitable otherwise, but due to the decrease in the proportion of committed ‘core’ golfers to the number of total golfers during recession, concentrating on this segment is no longer lucrative. Similarly, Altius can no longer judge its success based on how many professional golf tournaments have been won using their balls. Also, with the recession, recreational golfers aren’t ready to pay for expensive products that Altius sells. Thus, the preference for products in off-course shops are increasing. While Altius retains its position in on-course markets (which are mostly for high end customer who can afford the premium pricing), it is losing out on the price sensitive customer base from off-course stores, which accounts for 60% of its sales. The fact that the prior generation golf balls were offered at mid-price range and it was contributing in recovering in sales, indicates that the market was looking for more affordable equipment.

Additionally, introducing a lower priced product wouldn’t only play a major role in the comeback of Altius, they also needed a compelling marketing strategy to cater to ever changing consumer interests. Like the competitors were trying to encourage increase in the customer base by encouraging more and more people to take up golf, Altius would also have to think on similar lines. The non-conforming balls