Case | HBS Case Collection | May 2013

Altius Golf and the Fighter Brand

by Robert J. Dolan and Sunru Yong

Abstract

Altius Golf is the clear leader in the golf ball market despite a long-term decline in the number of golfers and a drop in sales following the financial crisis. The firm has maintained its position by introducing generations of advanced, super-premium golf balls that allow their customers to emulate professional golfers. The company has been losing market share to lower-priced competitors and the CEO wants to introduce a new program called Elevate to foster the next generation of golfers. With Elevate, the firm will introduce a ball that is more forgiving and easier to drive for distance and offer it at a price 40% below the company's flagship brand. Elevate will be available through "off-course" channels such as golf specialty stores and big box retailers instead of "on-course" pro shops where the firm typically sells its products. The board of directors is divided on whether to support the decision. Students must perform a quantitative analysis of the CEO's proposal to understand the potential risks and gains before making a final recommendation.

Keywords: Governing and Advisory Boards; Competitive Advantage; Decision Choices and Conditions; Distribution Channels; Sports; Financial Crisis; Brands and Branding; Segmentation; Sports Industry; Entertainment and Recreation Industry;

Citation:

Dolan, Robert J., and Sunru Yong. "Altius Golf and the Fighter Brand." Harvard Business School Brief Case 913-578, May 2013.