By referring to Appendix E: Competitive Analysis, we can see that CGC's competitive position has been whittled away, to the point where historical competitive advantages for CGC, such as Quality and Reputation, are now almost equal for 3 or 4 firms in the industry. The only competitive advantages that still remain for CGC, then, are Innovation/R&D (which is also slowly being eroded) and customer service. .
R&D.
• Most significant breakthroughs in golf clubs design happened from between 8 and 30 years ago. CGC's Big Bertha (BB) Metal Woods, introduced in 1991, have been its only real standout contribution to the industry. All other advances, such as BB X-14 irons and BB Titanium Woods, have all been applications of the same principle, i.e. transferring weight from an inefficient area to an efficient one. .
• One year after the BB, the competition had its own versions out, and 8 years since to close the technical gap in terms of equipment performance. .
• CGC's R&D costs are way up, but the gains in technology, income, sales and market share are decreasing.
• The question that is then raised is whether or not the golf industry is reaching a technical "plateau", whereby no more major innovations are possible, even with increasing R&D spending. Or is it that the R&D team, although with proven results to date, have begun to lose their way? In fact, could CGC reduce R&D expenses and still achieve adequate technical advances and hence sustain long term growth, or is it a matter of reorganising the R&D department?.
This question then leads to more detailed analysis of the company's strategy, as it appears that the historical vision and strategy may be holding the company back as it core competencies are eroded. Some questions are:.
• Are CGC's corporate, business and marketing strategies too narrow?.
• Are they becoming too old fashioned in promoting this equipment? .
