Harvard Case - Will brown become the new green? Sustainable golf in the old and new world
"Will brown become the new green? Sustainable golf in the old and new world" Harvard business case study is written by Benoit F. Leleux, Jan Van Der Kaaij. It deals with the challenges in the field of Strategy. The case study is 17 page(s) long and it was first published on : Oct 26, 2015
At Fern Fort University, we recommend that the golf industry embrace a multi-pronged approach to sustainable practices, focusing on both environmental and social responsibility. This strategy should involve a combination of disruptive innovation, strategic alliances, and digital transformation to create a sustainable competitive advantage in the evolving global market.
2. Background
The case study 'Will Brown Become the New Green' Sustainable Golf in the Old and New World' explores the challenges and opportunities facing the golf industry in adopting sustainable practices. The case focuses on the efforts of the European Tour and the PGA Tour to address environmental concerns while navigating the complex landscape of globalization, emerging markets, and changing consumer preferences.
The main protagonists are the European Tour and the PGA Tour, both grappling with the need to balance business growth with environmental sustainability. The case study highlights the industry's struggle to achieve value creation while minimizing its environmental footprint.
3. Analysis of the Case Study
To analyze the case study, we can utilize several frameworks:
Porter's Five Forces:
- Threat of new entrants: Relatively low due to high capital investment and established brands.
- Bargaining power of buyers: Moderate, as golfers have choices but are often loyal to specific courses.
- Bargaining power of suppliers: Low, as the industry relies on standardized products and services.
- Threat of substitutes: Moderate, as alternative leisure activities compete for consumer time and money.
- Rivalry among existing competitors: High, with established players vying for market share and struggling to adapt to changing consumer preferences.
SWOT Analysis:
- Strengths: Strong brand recognition, established infrastructure, loyal customer base.
- Weaknesses: High environmental impact, resistance to change, lack of innovation.
- Opportunities: Growing demand in emerging markets, increasing consumer interest in sustainability, technological advancements.
- Threats: Economic downturns, competition from other leisure activities, environmental regulations.
Value Chain Analysis:
- The golf industry's value chain involves various stages, from course design and construction to equipment manufacturing, tournament organization, and hospitality services.
- Each stage presents opportunities for sustainable innovation and resource optimization.
Business Model Innovation:
- The industry needs to explore new business models that prioritize sustainability and appeal to a broader audience.
- This could include eco-friendly course designs, resource-efficient operations, and community engagement initiatives.
4. Recommendations
Embrace Disruptive Innovation: The golf industry should invest in disruptive innovation to create new products and services that cater to the evolving needs of environmentally conscious consumers. This could include:
- Developing sustainable golf courses: Utilizing drought-resistant grasses, water-efficient irrigation systems, and renewable energy sources.
- Promoting eco-friendly equipment: Encouraging the use of recycled materials and reducing the environmental impact of manufacturing processes.
- Creating digital platforms: Utilizing technology and analytics to enhance the golfing experience and promote sustainable practices.
Form Strategic Alliances: Collaborating with other industries, NGOs, and government agencies can facilitate knowledge sharing, resource optimization, and the development of joint initiatives. This could involve:
- Partnering with environmental organizations: To develop sustainable practices and promote awareness campaigns.
- Collaborating with technology companies: To leverage AI and machine learning for resource management and data analysis.
- Working with local communities: To create shared value and promote responsible tourism.
Digital Transformation: The golf industry should leverage digital transformation to enhance efficiency, improve customer experience, and promote sustainable practices. This could involve:
- Implementing online booking systems: To reduce paper consumption and streamline operations.
- Developing mobile applications: To provide real-time course information, track player performance, and promote sustainable practices.
- Utilizing social media: To engage with consumers, promote sustainability initiatives, and build brand loyalty.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the industry's core competencies in course design, operations, and customer service while promoting a shift towards sustainable practices.
- External customers and internal clients: The recommendations address the evolving needs of environmentally conscious consumers while enhancing the experience for golfers and course staff.
- Competitors: The recommendations aim to create a sustainable competitive advantage by differentiating the industry from competitors and attracting a broader customer base.
- Attractiveness: The recommendations are expected to generate positive returns through increased efficiency, reduced costs, and enhanced brand image.
6. Conclusion
The golf industry faces a critical juncture where environmental sustainability and business growth are inextricably linked. By embracing disruptive innovation, strategic alliances, and digital transformation, the industry can create a more sustainable and profitable future. This approach will require a shift in organizational culture and leadership to prioritize long-term value creation over short-term profits.
7. Discussion
Alternative approaches could include focusing solely on cost leadership, which might involve reducing environmental impact through minimal changes. However, this approach could lead to short-term gains at the expense of long-term sustainability and brand image.
Key assumptions include the willingness of consumers to pay a premium for sustainable products and services, the availability of technology and resources to implement sustainable practices, and the commitment of industry stakeholders to embrace change.
8. Next Steps
To implement these recommendations, the following steps are crucial:
- Form a task force: To develop a comprehensive sustainability strategy and oversee its implementation.
- Conduct a feasibility study: To assess the costs and benefits of implementing sustainable practices.
- Develop a communication plan: To engage with stakeholders and promote the industry's commitment to sustainability.
- Pilot test innovative solutions: To evaluate their effectiveness and gather feedback from consumers.
- Monitor progress and adapt: To ensure the sustainability strategy remains relevant and effective in the evolving market.
By taking these steps, the golf industry can position itself for a sustainable and prosperous future while contributing to a healthier planet.
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Case Description
Golf over the years emerged as a global, cash-driven property development industry with nearly 4.4 million registered players in Europe alone in 2014. It developed as a business relying on a dense network of small- and medium-sized enterprises steeped in tradition. The combination of high growth and low brand value led to the golf industry lagging significantly behind other industries in terms of sustainability and social and environmental responsibility. With the downturn of 2008, things started to change, reluctantly at first then more proactively. Sustainability emerged as a hot topic on greens around the world. Bert Stadhouders knew more about it than anyone else. Freshly appointed in January 2014 as project manager for the Sustainable Golf Project, he was himself a dedicated golfer and a sustainability specialist. He had witnessed firsthand the disdain with which the sport was treating its sustainability footprint, as if oblivious to the CSR higher callings. In fact, beyond its green image and vocabulary, the game generated massive environmental and social challenges. Bert wondered how he could help drive sustainability to the top of the agenda in a reluctant industry steeped in conventions and history. Were the economic difficulties of the time a bounty or a boon for sustainability as a cause? To address sustainability on a global scale in golf, how could he factor in the huge differences between upcoming markets in Asia and more mature markets in Europe and the United States?
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