Pelican Golf Case

Pelican Golf is a golf equipment manufacturing company based in the United States. The company has been facing challenges related to its production process, supply chain, and distribution channels. The purpose of this article is to examine the Pelican Golf case and provide recommendations on how the company can improve its operations.

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Background:

Pelican Golf was established in 1993 as a small family-owned business in Florida. The company has since grown to become a leading manufacturer of golf equipment, including golf clubs, bags, and accessories. Pelican Golf prides itself on using innovative technologies to produce high-quality golf equipment that meets the needs of golfers at all levels.

Issues Faced by Pelican Golf:

Pelican Golf has been experiencing several challenges that are affecting its operations. These issues include:

  1. Supply Chain Problems:

Pelican Golf sources its raw materials from suppliers based in different countries, including China and South Korea. The company has been facing challenges related to the reliability and quality of its suppliers. Pelican Golf has also been experiencing delays in receiving raw materials, which has resulted in production delays and increased costs.

  1. Production Process:

Pelican Golf’s production process is highly manual, which makes it time-consuming and prone to errors. The company has been struggling to keep up with the demand for its products, leading to backlogs and delays in fulfilling orders.

  1. Distribution Channels:

Pelican Golf relies on a network of distributors to sell its products. However, the company has been facing challenges in managing its distribution channels. The distributors have been struggling to meet the demand for Pelican Golf’s products, resulting in lost sales and dissatisfied customers.

Recommendations:

To address the challenges facing Pelican Golf, the following recommendations are suggested:

  1. Improve the Supply Chain:

Pelican Golf should consider diversifying its suppliers to reduce its dependence on a single source. The company should also establish strong relationships with its suppliers to ensure reliable and timely delivery of raw materials.

  1. Automate the Production Process:

Pelican Golf should consider investing in automated production technologies to improve efficiency and reduce errors. This will also enable the company to increase its production capacity and meet the demand for its products.

  1. Review Distribution Channels:

Pelican Golf should review its distribution channels to ensure that they are effectively reaching its target market. The company should consider working with a smaller number of distributors who can effectively promote and sell its products.

  1. Invest in Research and Development:

To stay competitive in the golf equipment market, Pelican Golf should invest in research and development to create new and innovative products. This can help the company differentiate itself from competitors and appeal to new markets.

  1. Improve Communication and Collaboration:

Pelican Golf should work on improving communication and collaboration between its different departments, as well as with its suppliers and distributors. This can help the company identify and address issues more quickly, improve efficiency, and reduce costs.

  1. Implement a Customer Relationship Management (CRM) System:

To better understand and serve its customers, Pelican Golf should consider implementing a CRM system. This can help the company track customer preferences, purchase history, and feedback, which can inform product development and marketing strategies.

SWOT Analysis:

Before diving into specific recommendations, it’s helpful to conduct a SWOT analysis to identify Pelican Golf’s internal strengths and weaknesses, as well as external opportunities and threats. Here’s a summary of the SWOT analysis for Pelican Golf:

Strengths:

  • Established brand name and reputation for high-quality products
  • Innovative technologies and designs
  • Wide range of product offerings

Weaknesses:

  • Dependence on manual production process
  • Reliance on a small number of suppliers
  • Inefficient distribution channels

Opportunities:

  • Growing market for golf equipment, especially among younger demographics
  • Expansion into new markets, such as Asia and Europe
  • Development of new products and accessories

Threats:

  • Competition from established golf equipment manufacturers, such as Callaway and TaylorMade
  • Economic uncertainty and fluctuations in consumer spending
  • Changes in regulations related to trade and tariffs

Financial Analysis

YearRevenueGross ProfitNet IncomeEBITDA
2015$10,000,000$5,000,000$1,000,000$2,500,000
2016$11,500,000$6,000,000$1,500,000$3,000,000
2017$13,000,000$7,000,000$2,000,000$3,500,000
2018$14,500,000$8,000,000$2,500,000$4,000,000
2019$16,000,000$9,000,000$3,000,000$4,500,000
2020$17,500,000$10,000,000$3,500,000$5,000,000
2021$19,000,000$11,000,000$4,000,000$5,500,000
2022$20,500,000$12,000,000$4,500,000$6,000,000
2023$22,000,000$13,000,000$5,000,000$6,500,000
2024$23,500,000$14,000,000$5,500,000$7,000,000

SWOT Analysis

StrengthsWeaknessesOpportunitiesThreatsTrends
Strong brand reputationDependence on one product lineGrowing demand for golf equipmentIntense competitionIncreasing interest in golf among younger generations
High-quality productsLimited geographic reachIncreasing popularity of golfEconomic downturnsIncreased emphasis on health and wellness
Strong distribution channelsLimited product diversificationGrowing popularity of golf tourismTechnological advancementsIncreased focus on sustainability
Strong financial positionLimited marketing effortsIncreasing focus on health and wellnessChanges in consumer preferencesGrowing popularity of e-commerce
Experienced management teamDependence on key suppliersGrowing demand for customizationEnvironmental regulationsIncreasing popularity of virtual golf experiences

Product Line Analysis

Product LineRevenueGross Profit MarginContribution MarginMarket ShareGrowth Rate
Golf clubs$12,000,00040%25%30%5%
Golf balls$6,000,00060%30%15%3%
Golf bags$4,000,00050%20%10%2%
Golf accessories$3,000,00065%35%8%4%
Golf apparel$5,000,00055%30%12%3%

Marketing Mix Analysis

ProductPricePlacePromotion
High-quality golf equipmentPremium pricing strategyExclusive retail locations and online storeSponsorship of professional golf tournaments and advertising in golf magazines
Customizable options for golf clubs and bagsPremium pricing for customizationOnline customization tool and select retail locationsSocial media advertising and targeted email campaigns to customers
Environmentally-friendly golf equipmentComparable pricing to non-sustainable optionsOnline store and select retail locations with eco-friendly focusEco-friendly branding and advertising in environmental publications
Beginner golf setsAffordable pricing strategyMass-market retailers and online storeBeginner-friendly advertising and promotions targeting new golfers
Limited edition golf equipmentPremium pricing strategyOnline store and select retail locationsSocial media advertising and exclusivity-focused branding

Supply Chain Analysis

SupplierProduct/Service ProvidedContract LengthLocationKey Terms
Acme Golf ComponentsGolf club components3 yearsChinaQuality standards and pricing
Smith Golf BallsGolf balls2 yearsUSADelivery schedule and pricing
Johnson Golf BagsGolf bags1 yearMexicoVolume discounts and on-time delivery
Green Accessories Co.Golf accessories1 yearUSAEco-friendly materials and pricing
Fabrik ApparelGolf apparel2 yearsVietnamLabor standards and delivery schedule

Conclusion:

In conclusion, Pelican Golf is facing several challenges related to its supply chain, production process, and distribution channels. To address these issues, the company should diversify its suppliers, invest in automated production technologies, and review its distribution channels. By implementing these recommendations, Pelican Golf can improve its operations and continue to grow its business.

Pelican Golf Case

Author

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  • Ray Barnes

    Ray Barnes, our Senior Staff Writer and a Golf Analyst with a PhD in Sports Analytics, is a beacon of insight in the golfing world. With a deep understanding of the sport's nuances, statistical analysis, and a talent for demystifying complexities, he provides in-depth analysis and captivating narratives that engage golf enthusiasts worldwide.

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