Final answer:
Altius Golf has lost market share due to lack of innovation, higher pricing, and poor marketing strategy. Altius should focus on increasing market share, improving brand recognition, and managing costs. The advisability of introducing Elevate depends on market demand, cost-benefit analysis, and the competitive landscape.
Step-by-step explanation:
a. Why has Altius Golf lost market share? What will happen if Altius maintains the status quo?
Altius Golf has lost market share due to several factors:
- Lack of innovation: Altius hasn't introduced any new products or features to differentiate itself from competitors.
- Price point: Altius golf balls are priced higher than competitors, making them less attractive to price-sensitive customers.
- Poor marketing strategy: Altius hasn't effectively marketed its products, leading to low brand recognition.
If Altius maintains the status quo, it will continue to lose market share to competitors who offer more innovative products at competitive prices. The company may struggle to survive in the long run.
b. What should Altius's objectives be? What trade-offs must it manage?
Altius's objectives should be:
- Increase market share: Altius needs to focus on regaining lost market share by introducing innovative products and improving its marketing strategy.
- Improve brand recognition: Altius should invest in marketing campaigns and partnerships to increase brand awareness.
- Manage costs: Altius needs to find a balance between offering competitive prices and maintaining profitability.
Altius must manage trade-offs such as investing in research and development for innovation versus keeping costs low, and pricing its products attractively while maintaining profitability.
c. Analyze the economics of Altius's overall golf ball business compared to its competitors and three proposed Altius product lines. What are the implications of this of the advisability of introducing Elevate?
The economics of Altius's overall golf ball business are currently unfavorable compared to competitors. Altius has higher production costs due to outdated technology and smaller scale. Furthermore, the three proposed Altius product lines, while innovative, require significant investment.
The advisability of introducing Elevate depends on several factors:
- Market demand: Altius needs to assess if there is sufficient demand for a premium golf ball in the market.
- Cost-benefit analysis: Altius should evaluate if the potential benefits of introducing Elevate outweigh the investment costs.
- Competitive landscape: Altius should consider if introducing Elevate will help differentiate the company from competitors and attract customers.
d. Should Altius implement the Elevate strategy?
Whether Altius should implement the Elevate strategy depends on a thorough evaluation of market demand, cost-benefit analysis, and the competitive landscape. If Altius determines that there is sufficient demand, the potential benefits outweigh the costs, and Elevate helps differentiate the company, then implementing the strategy may be advisable.