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Golf Industry

In: Business and Management

Submitted By lediem
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ENDICOTT COLLEGE
School of Business and Technology

THE GOLF INDUSTRY:
A SUPPLY AND DEMAND ANALYSIS

With: Tom Fazio, The National Golf Foundation and Pulte Homes

CASE STUDY

This case was prepared by students Lauren Fournier, Jacob Kidder, Nemanja Marinkovic and Courtney Holloway with Assistant Professor Margaret Sherrerd Ake.

THE GOLF INDUSTRY - A SUPPLY AND DEMAND ANALYSIS
With: Fazio Golf Designers, the National Golf Foundation, and Pulte Homes

INTRODUCTION
In January 2007, on a red eye from Phoenix, Arizona back to his main office in Jupiter, Florida, Tom Fazio, a world-renowned golf course architect, reviewed research prepared by the National Golf Foundation (NGF) on the status of the golf industry at the end of 2006. The NGF research reported that in 2006, for the first time since the end of World War II, the number of golf courses that had closed exceeded the number of courses that were opened. The news was not encouraging.

Many in the industry had begun to contemplate the factors that contributed to this news. Had the supply of golf courses become too great in comparison to relatively flat demand? Or, were there other more lucrative uses for the properties on which golf courses were traditionally located? Had environmental, land, or other resource constraints hindered new course development? More importantly, how would the industry behave in the years to come? And, what if anything could the industry do to influence future industry performance? Fazio was due to meet the following week with Joseph Beditz, President of the NGF, to discuss these questions. Both hoped to develop insight into the future prospects for the game and ideas about how the industry participants might reverse what appeared to be an unwelcome trend.

Growth in the supply of US…...

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