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For a company to enter into this market would require significant amounts of investment. One could assume that other sporting goods companies could diversify into golf similar to Adidas and Nike, but there are no large manufactures that are not in the market already.
2. Brand preferences are very important to consumers. Callaway lists brand preferences as one of the top five reasons why consumers buy their clubs in their 2006 annual report along with technology, quality, customer service and price.
3. Capital requirements are low the production of clubs are very labor intensive and very little animation is in the manufacturing process...
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