In 2009, the golf industry generated 11.3 billion dollars of economic activity in Canada. More than 340,000 people earned income from this sector, 43% of those are students. It left 1.9 billion dollars in taxes of all kinds in government coffers. Approximately 70 million rounds of golf were played, including 1 million on trips made specifically to practice that sport. Here are the main features of the golf industry as presented in Management in Action.
Preferences of golf players vary considerably by age, gender and income. In Management in Action, we classify the players into three groups: fans, casual gamers and tourists. The fans play a large number of rounds and buy a membership card. Casual players pay a daily entrance fee and are not indifferent to discount. As for tourists, they must be join through promotion. Golf managers are very interested in consumer behavior: some players rent a cart, others consume meal and alcohol, while many take the opportunity to make purchases at the golf shop.
In Management in Action, competition is fierce because all the golf courses have initially the same financial resources. To stand out, identify a niche market and offer to customers the service that meets their expectations.
Many suppliers are involved in the initial construction of the golf course. Thereafter, you need to order cleaning products, food, items for the shop, carts, etc.
The substitution is not always apparent but it is present in the golf industry. Indeed, playing golf is a discretionary expense that can be dispensed. If the industry keeps prices high, this may discourage many players that will head to other leisure activities.
The threat of new entrants
Management in Action does not allow companies to enter or exit the industry during the simulation. However, many decisions are conventional means to close the door to competition: increasing the capacity of the restaurant or shop, improving customer service, investing heavily in infrastructure, lowering prices, etc.