Competitive Analysis
Overview
The golf equipment industry is highly competitive. There are numerous companies competing in various segments of the golf equipment markets including those which manufacture and sell golf grips to OEMs as a component of new clubs, and alternatively to retailers. Retail grips are, in turn, sold to golfers who need to replace old or worn grips. Some of the company's competitors have greater brand name recognition, more extensive engineering, manufacturing and marketing capabilities, and greater financial, technological, and personnel resources than the company. ProGrip will be competing primarily on the basis of product quality, product specifications and design, on-time deliveries, customer relationships, price, and brand name recognition.
The golf industry is generally characterized by rapid and widespread imitation of popular technologies, designs, and product concepts. ProGrip may face competition from manufacturers introducing new or innovative products or successfully promoting golf grips that achieve market acceptance. Therefore, in order to compete effectively in the long-term, ProGrip must continue introducing innovative products and designs, differentiate itself in the marketplace, and create lasting competitive advantages.
Competition
ProGrip competes with a number of established golf grip manufacturers. The company's primary competitors include Baker/GolfLife and GolfMax, with estimated worldwide market shares of 56 percent and 20 percent, respectively, and who dominate the larger OEM firms such as Allegra and Made Well. In addition, there are at least a dozen smaller golf grip manufacturers that primarily sell into the re-grip market. Of these, ProGrip will be primarily competing against Van Grips and Flynt Grips, since each boasts products with anti-vibration qualities. Finally, ProGrip will be competing against other, non-grip, anti-vibration solutions currently on the market, including oversized club heads, graphite shafts, and Atlas's Ultra product. However, despite the fiercely competitive nature of the market, ProGrip is confident, based upon the success of Flynt Grips, that its Impress line of premium golf grips can gain significant market acceptance.
Established in 1977, Flynt Incorporated entered the sports equipment industry as a maker of tennis racquet strings. The company's technological advances in string filaments propelled Flynt to its position as one of the leading suppliers of quality tennis racquet strings in the world. In the 1980s, Flynt revolutionized the tennis grip market, replacing leather grips with a synthetic grip made from a proprietary polymer called Elastom ETM®, resulting in 20 U.S. and foreign patents.
In 1996, Flynt entered the golf industry with a line of golf grips made with Elastom ETM®. Initially, the company penetrated the golf industry as an aftermarket product for golf club re-gripping. As a result of the distinctive feel and slip-resistance of the grip, as well as its purported anti-vibration qualities, Flynt quickly made inroads with major golf club manufacturers and now serves as one of the preferred OEMs for golf grips. Flynt's success has also led to widespread imitation among the larger manufacturers. Flynt currently commands the highest premium price in the marketplace for its grips, with standard grip prices ranging from $2.95 to $5.50, with higher prices for putter grips.
The Impress grip, being a design innovation rather than merely a change to the materials of the grip, provides a number of advantages over any other grip currently in the market, and it has several compelling advantages over other anti-vibration solutions. In addition, ProGrip can utilize standard manufacturing methods in the production of its Impress grips. These advantages, combined with the innovative sales and marketing techniques that the company plans to utilize, will help insure ProGrip's success in the golf grip market.
