The golf ball market has a leader. Altium Golf is the leading company in the golf ball manufacturing. The financial crisis was followed by a decline in golfers, thus the sales of the company. However, the firm’s position is intact because of its premium golf balls which match the professionals. However, the company has begun to lose its market share because of the availability of several low priced offerings in the market. The CEO plans to launch a new, lower priced golf ball called Elevate. The price would be 40% lesser than that of the premium priced products of the company. The balls will also be distributed to sellers apart from the on course shops. The company’s executive board must decide whether they should pursue with the decision or not. The students will be asked to develop an analysis of the proposal quantitatively to assess the risks and the benefits from the product. The students will have to make a final recommendation to the company.
Market Trends and Graphs
Revenue from Golf Balls in $ million
%age Change in Golf Ball Revenue
Altius, Primera and Bantam Market Share
Breakeven Cannibalizaion rate
1- What should Altius do?
2- Explain trends, competitors, consumer behavior, and the potential effects on the bottom line.
3- Spend most of your essay in defining and defending your recommendation for what should be done.