Golf

Are commercial strategies synonymous with business or sports success? (BSc)

Carl Lundborg & Jakob Nordström (2015)

Abstract: Commercial strategies are becoming more common in an increasing number of sports - Swedish golf is no exception. Previous research shows that new opportunities for non-profit organizations to assign parts of their operations to a limited company do not have any economic importance. The supplementary question arises why more golf clubs nonetheless choose to corporatize their activities? Is the purpose of commercial strategies generally linked to business- or sport-related success? This paper, containing two studies, aims to create an understanding of the underlying drivers of commercialization and to quantitatively demonstrate how commercialization is reflected within Swedish golf in terms of strategy and marketing. Swedish golf clubs were categorized as more or less commercial, and examined based on business-related variables such as communications, brand awareness, and price discrimination, as well as sports-related variables as success factors and success indicators. The result shows that the high competition, at least partially, is due to Swedish golf's commercialization. Additionally, it shows that the commercialization interacts with both business- and sports-related variables. Finally, the thesis presents evidence that the number of golf players and their budget are the highest correlated factors with high rankings. From a marketing perspective, the implications constitute an in-depth knowledge about the commercialization of golf, and also a strategic starting point for executives within the sport, making it possible to strategically position the golf club.