Submitted by: Submitted by vsohini
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Category: Business and Industry
Date Submitted: 11/18/2013 01:03 PM
Performance Indicator
Case prepared for BA 4310 on 11/18/13
By:
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Performance Indicator:
In 2002, Rob Osinski and Bob Winskowicz, partners of Performance Indicator, LLC, decided to introduce a new technology to golf balls that would expand the stagnant market. They had developed a ball that could change colors and let golfers know when a used golf ball suffered performance degradation due to water or other hazards. Currently, the golf ball industry is worth $1 billion and sells 50 million dozen-golf balls around $20/dozen. Golf World magazine project that golfers lose 220 million dozen balls a year, but instead of buying new balls, golfers choose to used 100 million dozen repackaged or used balls. This has the left the market stifled and with the new technology from Performance Indicator, could potentially add $1.6 billion in revenue to the industry. The two partners spent three years refining the technology, and another two presenting it to manufacturers with little to no luck.
Market for Golf Balls:
In the last decade, the price for golf balls has ranged from $17 to $50, with the average value-priced brands around $35/dozen. The United States Golf Association (USGA) has established strict parameters on the size, weight, material, and texture of a standard, legal golf ball. “In fact, the USGA regulations specified not just what went into a ball, but how it could perform, stipulating to within 10-20 yards how far the ball could travel when hit by a certain type of club traveling at a certain speed, all verified under controlled conditions with robotic testing equipment.” These restrictions have impacted the innovation of technology towards golf balls in general. To conform to these restrictions, three basic types of balls were developed. The oldest technology is a three-piece ball that has a core, windings, and cover. Overall, it is good for spin and control, and is still in use today. The second type is a two-piece ball and is the most popular...