Golf Ball Industry

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and succeed in the , what type markets exist, and how much potential revenues exist. This research should provide enough information to understand the basic structure of the golf ball market. One question which this research would like to answer is: Is there room for a small business competitor?
According to an industry survey conducted by Standard and Poor’s, golf product sales grossed approximately $3.9 billion in 1996 (5). Of these sales, $789 million dollars were spent on golf balls. Standard and Poor’s also claim that this industry is expected to grow at least by 5% a year due to increased prices of premium products and because of increased participation rates due to emerging young stars like Tiger Woods. It has been estimated that around 25 million people in the United States play golf. As seen in Table 1, golf participation rates took a dip after the early 90’s, however, the rates now show a positive growth trend (Golf Perspectives).
TABLE 1- Golf ...

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the market is divided by many different companies. It also shows that Titleist, Spalding (Top Flite), Wilson, and Maxifli/Dunlop are the four major golf ball producers.
Titleist is the leading manufacturer in the golf ball market. Their claim to fame is being the "golf ball of choice by PGA and LPGA club professionals"(Titleist). As seen on Figure 2, PGA tour professionals overwhelmingly used Titleist balls in the 1998 U.S. Open which is a major tournament.(Titleist). This percentage is very consistent throughout PGA tournaments all year round.
Figure 1 - Ball Count at US Open '98


Title also innovated golf ball testing in the 1930’s and 1940’s which created demand for ...

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