Callaway Golf Essay

Callaway Golf Essay
THE MARKET
More than two decades ago, Ely Callaway set out to build a company that would bring more enjoyment and game improvement to golfers of all skill
levels. He accomplished much of that goal in 1991, introducing a technological wonder called the Big Bertha Driver. By creating in Big Bertha a larger
clubhead without adding weight, the late founder of Callaway Golf Company turned the most–feared club into the most–loved almost overnight. The
driver became the fastest–selling club at retail. Many innovations have followed. From woods, irons, and putters to golf balls and golf accessories,
Callaway Golf has consistently used ingenuity, quality construction, and technology to make the finest premium products in the industry.
Callaway ... Show more content on Helpwriting.net ...
In fact, Callaway Golf products are among the most popular on the world's professional tours and have been used to set several scoring records and
win hundreds of tournaments. This success helped Callaway Golf become the world's largest manufacturer of golf clubs within five years of the Big
Bertha Driver's launch, prompting major changes within the golf industry. Callaway Golf's success enabled it to become the first major golf company
to go public, as shares of company stock began trading on the NewYork Stock Exchange in 1992, under the ELY ticker symbol.
HISTORY
Callaway Golf's success story begins with a small three–person golf company called Hickory Stick USA, which was founded in 1982 in Temecula,
California. The company initially made wedges and putters that had unique shafts constructed of hickory with a steel core. These clubs caught the eye
of Ely Callaway, who bought an interest in the company the following year. Mr. Callaway had already been a successful businessman in the fields of
textiles and wine, and golf would become the third and most successful act in his entrepreneurial career. His business philosophy В—that every
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Competition in the Golf Equipment Industry
1. Discuss the trends in the golf equipment industry and how it may impact a company's strategy.
Ans: According to new the United States Golf Association (USGA), Golf equipment manufacturers are forced to launch the equipment within the
limitation. Therefore, the product differentiation is not quite high while recreational golfers do not enjoy playing due to lack of innovational
equipment. Also, the USGA states that there are various factors that result in the declining of golfers such as:
– Game difficulty: Golf equipment manufacturers are forced to follow the new USGA rules, thus, recreational golfers are suffered from the limitation
of golf equipments. They cannot enjoy playing golf as much as before while new golfers face the ... Show more content on Helpwriting.net ...
Based on the company selected in the previous discussion, recommend how the company can ensure that its competitive advantage is sustained.
a. Strong research and Innovation: The technology industry is one of the leading industries with respect to strong research and innovation. And when it
comes to setting the pace using innovation as leverage; Apple and Sony are the two companies that have held their leadership position using innovation
as a competitive advantage.
b. Brand Popularity: Being recognized all over the world as a respected brand is a sustained competitive advantage that companies such as Virgin,
Apple and Coca cola have used as leverage to hold the market sway for years. Virgin is a company that has used its brand name as leverage to break
into new markets in completely new territories.
c. Corporate reputation: Corporate reputation is a form of sustained competitive advantage that

Callaway Case Study
Callaway Case Study Questions: 1.Evaluate Callaway 's strategy from 1988–1997. What factors contributed to its success? How strong is the Callaway
brand at the end of 1997? Is Callaway well positioned?
The transformation from a niche producer to an innovation powerhouse!
Important factors:
Ely Callaway:
a powerful motivator
defined the company 's culture
Characteristics: charming, feisty, optimistic, energetic, and inspirational
golf club champion at 20
three–handicap golfer at 40
Richard Helmstetter: a billiard cue stick expert, became CGC 's vice president and chief of new products in 1986.
The development of the unique clubhead model S2H2 in 1988 transferred the weight from a place where ... Show more content on Helpwriting.net ...
3.Concentrate on training and developing of salespeople and spokespeople
These two groups have more ability to educate consumers about new products and their benefits. In my opinion it is very important because the
consumers get very confused as CGC provides so many different products that actually have different benefits. As the products get upgraded people
who work with them should be also upgraded to be able to communicate the message as clear as possible.
4.Investing heavily on promotion and advertising campaigns
Keep spending money on advertising. CGC should try to stick and develop on particular pro to make him or her a new Tiger Woods, that would not
only bring attention to the company but might also attract more people to the sport itself. The company looks big enough to hold its own tournaments
that would also bring more people.

5.CGC should implement volume discount policies
By practicing volume discount policies CGC might encourage buyer to order products in large volumes
6.The company should focus on using its previous models more efficiently
Old models take a large percentage of companys inventory what creates unnecessary costs. CGC should move these models to new markets that
recently adopted Golf as a sport.
3.What is the market opportunity you see for the future? Who is Callaway's target audience? Is it big enough to help turn sales around?
In 1986, there were 20

Callaway Golf Company (CGC)
Callaway Golf Company (CGC) excelled in designing, development, manufacture and marketing of Golf clubs and accessories. Established in
1982, the publicly traded company recorded a steady growth in sales from $5million in 1988 to $800 million in 1997. This was possible due to
clarity in vision of its CEO Ely Callaway, which was aimed at making a satisfying product which was uncommon and enjoyable for the average
player rather than professionals. The revolutionary clubs were sold to professional as well as average players at premium prices driven by the high
performance delivered by them.
The company's CEO and founder Ely Callaway was a golf champion himself during his twenties and was a powerful motivator defining the company's
culture ... Show more content on Helpwriting.net ...
The products were placed in both off–course and on–course retail stores but 65% of sales came from off–course stores since on–course stores had other
priorities than just selling clubs. Thus the off–course sales team had various responsibilities on field which included running demos, correcting CGC
displays, maintaining physical inventory, providing product seminars, taking customer orders and accustoming with store sales people. The promotions
for CGC products were done through golf magazines, trade publications, television and word of mouth. Although the company endorsed certain
professional golfers on the five major tours, there were many notable professional golfers who used their products throughout the world without being
under contractual obligations. CGC also promoted via television ads aired during golf tournaments on CNN and ESPN increasing the budget
allocation from $45 million in 1996 to $79 million in 1998.
New golfers increased from 1.5 million to 3 million between 1988 and 1998, but most of them quit due to increased cost of playing which went up by
nearly 50%, unavailability of courses and time involved in playing. The global premium equipment market declined post 1998 due to various reasons
like decreased demand, Asian economic turmoil and saturation of product in the market place. To CGC's benefit the competition on golf equipment

Troon Golf
Introduction
Troon Golfis the leading premier luxury golf management, development and marketing company in the world.
Manages world–class golf courses, golf clubs, and resorts around the world.
Provides comprehensive solutions to almost all golf facility operations and developments.
History, Development & Growth
Founded in 1990 by Dana Garmany.
Headquartered in Scottsdale, Arizona.
Largest third party manager of golf and club operations.
197 golf courses worldwide.
Provide extraordinary guest and member experiences in 29 countries and 34 American states.
History, Development & Growth (Cont....)
Operate in two divisions:
Troon Golf: Manages operations of daily fee and resort facilities.
Troon PrivГ©: Manages operations of private clubs. ... Show more content on Helpwriting.net ...
Corporate–level Strategy (cont..)
EZLINKS allows management companies to operate multiple golf courses from a single, highly integrated platform.
Integrating real time performance data, multiple customer databases and multi–course marketing program into stream line reporting and decision
making to enhance customer service and increase revenue growth.
Business–level Strategy
Strategic Replacement Program
Total Cost of Ownership(TCO)
A technique used to calculate a more accurate cost that includes all associated costs.
Gartner Group introduced TCO in the late 1980s when PC–based IT infrastructures began gaining popularity.
Helps the company determine if the cost to maintain old technology is less than replacing the hardware.
Lifecycle Management Plan
Business–level Strategy(Cont...)
Leasing Over Purchasing

Set up a Leasing Option with DELL Financial Services

Stock Market Essay
I have 100 thousand dollars to invest in the stock market that I will disperse among six different companies. Each of the companies that I have chosen
to invest in are different types of companies so that all my money is not in one type of market. The companies that I chose consist of GW
Pharmaceuticals, Callaway, Genesco, Citigroup inc., McDonalds, and Ball Corporation. Each of these companies are different market types and they
are at different stages of growth. Through purchasing 100 thousand dollar's worth of stock, I intend on these stocks doubling my money within two
years. The trading house that I will use for my investments will be Charles Schwab. I am using this trading house because the rates are affordable at
$4.95 a trade ... Show more content on Helpwriting.net ...
(GCO). Genesco is a retail and whole seller of footwear and accessories. The reason I see this as a high–risk investment that is worth it is because the
stock recently started rebounding from a long downtrend. The latest reports have also shown improvements. I will invest another $16,500 into Genesco
which will give me 625 shares with no dividend. Another high–risk stock I would get into is GW Pharmaceuticals. This stock appears to jump up and
down a lot which means if I could figure out when it is at its lowest, I could buy a lot of shares and turn it back around once the stock peaks again.
By purchasing this stock, it gives me a stock that is related to medicine which allows my money not only to be dispersed in different stocks, but
different markets. GW Pharmaceuticals is currently selling at $103.73 so with $16,500 I would buy 160 shares. The last stock that I would like
to invest in is Callaway Golf. By having this stock in my portfolio, it gives me a stock in the sporting market. I picked this stock because it has
been on a steady rise and the golf business is doing better and better. I have an interest in this company and I own their product so I know I am
investing in a good product. The dividend is very low for Callaway at only .30% which means I will not get a big quarterly check at all but I still like
purchasing this stock. This stock cost $14.52 so with $16,500 I can

Risk And Financial Impact Of Under Armour
Risk & Financial Impact Under Armour is exposed to numerous risks entering the golf equipment industry. Despite, the organization already having a
footprint in the sport as they are in the apparel market, they are still susceptible to the risks that plagued Nike. Under Armour can be exposed to
manufacturing, assembling, distribution, and marketing deficiencies that without proper planning could become detrimental to their product launch.
"The biggest problem we've encountered is lack of preparation: Companies are so focused on designing and manufacturing new products that they
postpone the hard work of getting ready to market them until too late in the game" (Schneider & Hall, 2011). It is critical that when Under Armour is
read to launch into the golf equipment industry that the equipment is top notch, there is a plan for marketing, and Under Armour is ready to follow
through on their claims and delivery of golf equipment. Potential Risks: The first exposure is presented to Under Armour is their relationship with the
overseas manufacturing partner. Shortages of raw materials, delays, and inefficiencies in the manufacturing process can disrupt the product launch. If
Under Armour is going to make claims to deliver top notch equipment in a period of time, they have to rely on overseas communication, manufacturing
and delivery to do so. There is a concern that the increases in the manufacturing costs can start reducing profit–margins. As seen over the past election
debates,

Callaway Real Estate Limited Partnership: Case Study
The Callaway Real Estate Limited Partnership was formed on January 1, 2015. Their business consists of purchasing, constructing, and managing
residential real estate. Currently, Callaway is under the accrual method of accounting and has a calendar year end. Under the partnership agreement,
Callaway has one general partner, Tambour Properties Inc., who provides all staff and services. In return, Tambour receives an annual management fee
of 5% of gross rental income earned by the partnership. The other 95% of partnership taxable income is allocated to the limited partners based on their
percentages specified in the partnership agreement. The partnership agreement also specifies that partners' capital accounts are determined and
maintained by Section 704(b) regulations, and that as general partner Tambour must restore any deficit balance in their capital account upon liquidation
... Show more content on Helpwriting.net ...
(2) Is the management fee paid to the general partner, Tambour, treated as a guaranteed payment or part of their distributive share? (3) What
amount of loss is allocable to the limited partner, Dr. Ashin, in this taxable year? (4) Of the allocable amount, how much is deductible and are
there any limits on how much she can deduct this year? (1) The payment is equal to 5% of gross rental income earned by the partnership, which is
earned regardless of the overall net income of the partnership for the year. (2) Since the management fee is based on gross rentals regardless of the
net income of the partnership, it should be treated as a guaranteed payment to Tambour under IRC В§707(c). (3) Of the net taxable loss for the year
of the partnership, $292,324 is allocable to Samantha. (4) Based on the allocable amount, Dr. Ashin is limited by her adjusted basis of $125,000
under IRC В§704(d), and is limited to a deduction of $13,200 based on passive activity limitations under IRC

Callaway Golf
Callaway Golf Company
Executive Summary
Established in 1982, Callaway Golf Company is a leader in the golf equipment industry, creating some of the most technologically advanced golf
clubs in the business. In less than a decade, Callaway's sales went from $5 million in 1988 to well over $800 million in 1997. The main man behind
the success of Callaway Golf Company is Ely Callaway, founder, chairman and chief executive officer. Over the course of the company history, other
leaders in the company included Richard Helmstetter, who had previously been a successful manufacturer of Japanese billiard cues and joined
Callaway. In 1996, the company hired Don Dye. Between 1996 and 1998, when Ely Callaway reassumed the role of CEO, the ... Show more content on
Helpwriting.net ...
When I say performance, I am talking about Callaway producing a club that permitted the average golfer to play at a higher level than they might
otherwise play without a Callaway driver.
In order to achieve this higher level of performance in one's golf game, Callaway had created a club for their target market that met yet a third need,
that being the demand for forgiveness in a club. To meet this need Callaway created a driver that allowed a less than technically proficient golfer to
drive the ball straight and accurate down the fairway, even though the golfer may have hit the ball left or the right of center on the driver.
In other words, what the golfer lacks in technical skill can be compensated for to a noticeable degree by the advanced design of a golf club. This is
what is known as forgiveness. The fourth and final need is that of quality. Given that Callaway customers paid a premium for Callaway clubs, they
expect that Callaway would create nothing short of a high quality club. A high quality club being one made of the best materials, while delivering on
all of the claims made such as improved performance. It was Callaway's ability to successfully meet these four customer needs that had put them at the
top of their game for many, many years.
Company Skills
As was described from the above definition, there are skills that the company must possess if it's to achieve the

Callaway Golf Marketing Plan
Running head: GROWING THE GAME
Growing the Game
Callaway Golf (Marketing Plan)
Abstract
This proposal discusses the promotion of and the expanding of the Custom Club Fitting service to more markets. This proposal will also discuss and
give a brief overview of the company's history, overall philosophy, the current market condition, the competition, performance, customers, a SWOT
analysis, marketing strategies, and marketing mix strategies. The objective of this proposal is to develop and implement an effective marketing plan to
expand Custom Club Fitting to more markets to increase performance in the market.
Growing the Game
Contents
Executive Summary................................................................................. 4
I Introduction5 ... Show more content on Helpwriting.net ...
We have carefully looked at our external and internal environments. The external analysis looked at the market and the competition, while the internal
analysis examined Callaway's performance, as well as its customers. We also performed a "SWOT" analysis, enabling us to identify our strengths,
weaknesses, opportunities, and threats. This analysis lends to the view that it is imperative that we change our existing strategy and focus on other
markets. It is not suggested that we ignore our existing markets, but rather that we expand our customers and potential customers access to custom club
fitting. I firmly believe that by pursuing this avenue, and by implementing and controlling the proposed fundamental marketing strategies and
marketing mix strategies, we will be able to achieve the stated objectives.
I. Introduction
a. Background
Ely Callaway founded Callaway Golf Company in 1982. In the early years, the company was named Callaway Hickory Stick USA, Inc. and
specialized in hickory shafted putters and wedges. In 1988 the name of the company was changed to Callaway Golf Company. In the '90s, Ely

Callaway and his company changed the golf industry in ways no one could have anticipated. Richard Helmstetter and his R&D department found a
way to create a stainless steel driver that had a larger and more forgiving

Golf Equipment
CASE STUDY #4 1. What are the defining characteristics of the golf equipment industry? What is the industry like? Even though golf had grown to
be a sizable part of the U.S. economy, the golf equipment industry was faced with serious troubles in 2008. The convergence of a variety of serious
hazards to the industry had caused the retail value of the golf equipment industry to decline from approximately $4 billion in 2000 to about $3 billion
in 2003. Golf equipment sales had rebounded to an estimated $3.8 billion in 2007, but many threats to the industry continued to exist. The number of
golfers in the United States had declined from 27.5 million in 1998 to 22.7 million in 2007. The number of rounds of golf played in the United States...
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The USGA and R&A have announced the limitation on many aspects even though there is little evidences that technological advance of golf
equipment will lower the score. The regulations that enforce rules on club head size and performance also increase the profitability to shaft
manufacturers. The USGA allowed interchangeable shaft which mean that golfers can install different shafts into the driver head to have different
launch characteristics. So the differentiation of golf club changes toward the compatibility with shafts. The skilled core golfers might have strong
preference for a particular shaft and select golf club based on which club is compatible with their preferred shaft. The introduction of new
regulation will also have an effect on the industry competition as the competition will shift from technological capabilities to price competition and
endorsement contracts. b) The number of Golf players and their frequency of playing The trends of golf playing are going down because of many
factors or reason, the several reasons are: * Difficulty of the game which disappointed the existing players and make them quit playing * Lack of free
time the play and practice from many reasons * Health concern and injury from playing * High playing fee These factors are accountable for the
declining trends of golf industry and will reduce

Case Study of Callaway Golf Company Essays
Case Study of Callaway Golf Company
Section I. Summary
Callaway Golf Company began to take form in 1983, after Ely Reeves Callaway Jr. sold Callaway Vineyard and Winery for a $9 million dollar profit.
Shortly after the sell of the winery, Callaway ventured in to the golf equipment industry and bought 50 percent of Hickory Stick USA. Callaway knew
from the very beginning that this company's profits were limited as long as the product line wasn't changing. "Callaway noticed that most golf
equipment had changed very little since the 1920s and believed that , due to the difficulty of the game of golf, recreational golfers would be willing to
invest in high–tech, premium–priced clubs if such clubs could improve their game by being more ... Show more content on Helpwriting.net ...
Helmstetter and his engineering team were very important to the execution of Callaway Golf's competitive strategy. Callaway Golf Company
consistently outspent its rivals in the industry on R&D which "allowed it to continually beat its competitors to the market with new innovations." (P
c210) In 1994, Callaway Golf opened the Helmstetter Test Center located a mile away from the main campus. The Helmstetter Test Center had two
primary uses; it provided an ideal place to custom–fit clubs for the touring pros who used Callaway equipment, and it allowed Callaway R&D staff to
test new products in the developmental stage. The development of new products at Callaway Golf Company not only included the research and
development staff but also the sales and advertising staff. These teams worked hand in hand together. When the R&D would come up with a new
product idea, the sales and advertisement staff would look over this idea and recommend changes based on the current market interests.
"Callaway's customer service department was viewed as a critical component of the company's overall level of differentiation." (p. c215) Even before
handling any customer service inquiry, each customer service representative received eight weeks of training since the entire customer service staff
was empowered to make a final decision regarding a consumer or retailer complaint or warranty claim. In other golf

Golf Industry Competition
Case #3: "COMPETITION IN THE GOLF EQUIPMENT INDUSTRY"
From its earliest beginnings in the 1450's, golf was a peculiar game that tested the individual skill of each person who played. It is a game that takes a
player on a journey through a number of "greens." The player must try to get the small, hard golf ball into the "green" or "putting green" which contains
a hole in the ground. The player can only hit the ball with a golf club. Golf equipment, such as golf clubs, golf balls, and the like are the subject of this
report.
There are five competitive forces: "competitive pressures stemming from buyer bargaining power and seller–buyer collaboration; competitive pressures
coming from companies in other industries to win buyers ... Show more content on Helpwriting.net ...
Callaway Golf, Ping Golf, and Taylor–Made Golf utilized the innovations in club head design the best.
Important factors in evaluating industry and competitive environment include: the industry's growth potential; whether powerful competitive forces are
squeezing industry profitability and whether competition appears destines to grow stronger or weaker; whether industry profitability will be favorably
or unfavorably affected by the prevailing driving forces; the company's competitive position in the industry vis–a–vis rivals; and how competently the
company performs industry key success factors (Gamble & Thompson, 2011, p 69).
Net sales for Callaway Golf is: $1,117,204,000 in 2008 up from $934,564,000 in 2004; TaylorMade–Adidas Golf is: в‚¬812,000,000 in 2008 (when the
exchange rate was 2.008 US dollars for every в‚¬1) up from в‚¬633,000,000 in 2004; Fortune Brands' Golf is: $1,369,000,000 in 2008 up from
$1,212,000,000 in 2004.
Operating income for Callaway Golf is: $84,188,000 in 2008 up from ($24,702,000) in 2004; operating profit for TaylorMade–Adidas Golf is:
в‚¬78,000,000 in 2008 (when the exchange rate was 2.008 US dollars for every в‚¬1) up from в‚¬60,000,000 in 2004; Fortune Brands' Golf is:
$125,000,000 in 2008 up from $154,000,000 in 2004. TaylorMade–Adidas Golf is doing extremely well. TaylorMade–Adidas Golf seem to have a
strategy that copes

Callaway Marketing Strategy Essay examples
Marketing Strategy
Callaway's main strategy is differentiation based on technologically advanced products which (supposedly) have performance advantages sufficient to
justify the premium price. Callaway's goal is to maintain its #1 position as the world's largest golf merchandise company. To maintain its status and
distance itself even further from the competition, Callaway will need to utilize its size and unique technological advances to continue to produce great
products that maintain customer loyalty while attracting a broader customer base. Callaway now can also use the products of its recent acquisition of
Spalding to further reach a wider customer base. As it continues to pursue a better research and development program this ... Show more content on
Helpwriting.net ...
– Technical staff
– Reputation and popularity
– Track record
– R&D facilities
– Relationships with professional golfers
– Drivers are most widely used on pro tours
– Strong balance sheet . . . liquidity
– Good customer service, advertising and legal staffs
Table 3:
Relationship between golf clubs and golf balls: Identify in this column the areas of the value chain:Use this column to discuss whether you see or don't
see relatedness in terms of this strategy:
HorizontalMarketingUtilize advertising golf equipment within the same advertisement. TechnologyNot related because they are two different types of
inventory made primarily by two separate machines. Inbound LogisticsThe computer software that controls the inventory could be utilized for both the
golf balls and the golf clubs. OperationsThe manufacturing could take place in the same facility which would allow a lot of shared responsibilities.
Outbound logisticsWarehousing could be shared as long as utilizing the same trucks to move the products. ServiceGolf clubs and balls go hand in hand
you need one with the other and training is vital in learning the game. Agolf ball would be an added value to the golf club.
Golf balls and golf clubs are definitely a horizontal relationship. In the game of golf it would be hard to use a soccer ball or basketball or for that
matter a tennis ball in

Callaway Golf Case Anaylasis
Callaway Case Paper
Position Statement Callaway Golf Company should change their focus and perception of marketing because their premium priced golf clubs do not
match today's hard economic struggles that average golfers are in as well as the changing golf culture that is threatening their sales. Callaway needs to
focus on securing the customers that are loyal and who are true friends to their company. They can offer deals such as having discounts to customers
that are repeatedly buying their products as well as gaining knowledge in the technology of their golf clubs to satisfy their customer's expectations of
their product.
Strategic Planning
Callaway Golf Mission Statement: "Callaway Golf Company is driven to be a world class ... Show more content on Helpwriting.net ...
They had many loyal true friend customers that bought their clubs time and time again. A true friend customer is loyal as well as profitable to the
company and CGC's true friend customers have been fading over the last several years and they are turning into butterflies or barnacles. CGC is a
top golf club developer but they are most well known for their driver the Big Bertha series. If a golfer wants the best of each different type of club,
they might only buy a CGC driver or a putter. If a customer bought just a select few of clubs from CGC they would be considered a butterfly to the
company. If CGC would offer discounts on entire packages of clubs and maybe even add free apparel, this may secure true friend relationships with
customers like they had when the company was first established. Another problem has occurred for CGC and that has to deal with the rapid
development of new clubs on the market. Producing new clubs at such a fast pace may leave customers feeling uncertain of their clubs or other golf
equipment that they have just purchased recently from CGC.
Business Portfolio Analysis CGC still to this day remains a powerful and successful player in the golf industry even though their sales have dropped
17% since 1998. The economy in the last several years may be a large contributing factor to the decline in sales as well as golf becoming more of a
leisure sport.

Golf Equipment
CASE STUDY #4 1. What are the defining characteristics of the golf equipment industry? What is the industry like?
Even though golf had grown to be a sizable part of the U.S. economy, the golf equipment industry was faced with serious troubles in 2008. The
convergence of a variety of serious hazards to the industry had caused the retail value of the golf equipment industry to decline from approximately $4
billion in 2000 to about $3 billion in 2003. Golf equipment sales had rebounded to an estimated $3.8 billion in 2007, but many threats to the industry
continued to exist. The number of golfers in the United States had declined from 27.5 million in 1998 to 22.7 million in 2007. The number of rounds
of golf played in the United States ... Show more content on Helpwriting.net ...
| Ping Golf| 20 endorsement contracts with PGA Tour golfer, 12 LPGA Tour members.| Nike Golf| 17 PGA Tour members, Tiger Woods for club,
shoes and apparel.|
c) Equipment manufactures have moved to competing on price due to challenges with differentiation brought on by new USGA and R&A rules. While
Callaway Golf, TaylorMade, Ping, Titleist and Cobra Golf tightly controlled retail prices, Nike Golf is the only brand that uses different strategy with
the lowest price charge that came from an uncontrolled retail price.
The competitive force that seems to have the greatest effect on industry attractiveness is the bargaining power of the golf's governing organizations.
USGA and R&A limitation to the innovations affects the whole industry from the technology advancement manufacturers to the declining numbers of
golfers. The restrictions to the high technology advancement of golf equipment decline a large number of recreational golfers. The manufacturer who
tried to continued produce the equipments that against USGA's rules had face with the failure because golfers did not dare to buy any products that
against the USGA's regulations. USGA and R&A limitation to the innovations force the overall industry and each company to find its own strategic in
order to compensate with the USGA.
The competition in the golf equipment industry is fierce among rivals in this industry. The competition weapons that are being used are centered on the
technological

Callaway Golf Canada Essay
| Callaway Golf Canada: The Mobile Performance Team| Case Study| | | |
Jamie Merrimen
100117777
October 12, 2012
Business 1703 D1
Dr. Conor Vibert
|
Problem Statement
Wayne Mallette is the director of performance management for CallawayGolf Canada, the world`s largest golf club manufacturer. In 2004, Mallette
launched the Mobile Performance Team (MPT), a team of 20 consultants who demonstrate the Callaway equipment line as well as measuring
customers for custom equipment at private golf courses during the golf season. Mallette has been asked by Callaway Canada`s managing director to
design a plan for the approaching 2008 golf season to make sure that Callaway Canada will stay ahead of its competitors. ... Show more content on
Helpwriting.net ...
Having a professional on site would increase the credibility and effectiveness of the consultations. An inconvenience in this plan is that `to become
certified in Canada, an individual must work a minimum of 35 hours per week under a head professional and pass a playing ability test (Jackman, Brett
(2008) Callaway Golf Canada. Ivey Cases page 9).
3) Mallette also is considering pairing the MPCs up with professional staff at the club the MPC is working at. This would have the same benefit of
having professionally certified MPCs, but there wouldn`t be the one–on–one aspect that many club members enjoy and value. On the contrary, club
members may be comforted by having a member of their club`s professional staff present, it may lead the club member to trust Callaway Golf and
the MPC more. It would also be beneficial as the club member could consult the club`s staff member if they had any more questions after the MPC
had left. The inconvenience in this scenario is that Callaway would have to pay the club staff member as well as the MPC.
4) Another option would be to update the equipment that Callaway Golf MPC`s use during their consultations. They currently are using Accusport
Vector machines that are in fine working condition, but the newest model has just been launched, the Vector Pro monitor which would be useful for the

golf professionals during lessons as it incorporates video swing analysis into the fitting

Mr. Kirby 's Golf Shop
Mr. Kirby's golf shop is a small traditional retail store looking to enhance business through the world of technology. Technology is changing the way
customers shop and having an online presence for this company is crucial. With an online presence, Mr. Kirby can offer detailed product information,
offer online shopping, and even allow customers to schedule tee–times. I have been asked by Mr. Kirby to research different websites that offer
everything he is looking for in his own company. By incorporating social computing and mobile commerce, Mr. Kirby's golf shop will be up to date
with the ever–changing world of technology. This will allow his company to grow and run for efficiently while enhancingcustomer relationships. First,
Mr. Kirby needs look at a competing company and the different ways they use technology to help improve their businesses. Callaway is one of the top
golf companies today. According to Callaway's website, their mission is to pursue advanced, innovative technologies that help golfers of all abilities
find more enjoyment from the game (2015). IT plays a big role in the success of this company. Their online presence offers many different products
with detailed information from customer reviews to related products. Callaway also uses social computing to enhance customer relationships. They
connect with their customers through Facebook, Twitter, Instagram, and Tumblr. By using these elements of social computing, Callaway is able to
follow public opinion

Gravitational Potential Energy In Golf Essay
Introduction
Potential energy is energy stored in an object that gives it the capacity to do work or make things happen. Every object positioned above the ground had
gravitational potential energy (Gravitational Potential Energy = mass x gravity x height), therefore when a ball (which has gravitational potential energy
) is dropped, gravity pulls the ball towards the earth's surface. The potential energy of the ball transforms into kinetic energy, or the energy of a moving
object, as it falls (Kinetic Energy = ВЅ x mass x speed of object). Since the law of conservation of energy states that energy may be transferred but
never created or destroyed, the kinetic energy in the ball has to go somewhere when the ball hits the ground. Therefore, the ... Show more content on
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Rather, the results suggest it is the type of ball that determines its bounce height. The differences in the average bounce height of the three most
expensive golf balls (158.8) compared to the average bounce height of the cheaper golf balls (158.6) are minute. Callaway, Dunlop and Srixon were
the balls that bounced the highest. Callaway, with an average bounce height of 165.6 cm, was expected to be the highest as it is the most expensive
and a three–piece ball, which are designed to go longer distances and therefore need to bounce more. The Dunlop ball surprisingly came second with
an average bounce height of 161 cm. Since details about this ball are unavailable due to it being an older model, this data suggests that the ball is a
3–piece ball. Srixon and Wilson Staff were extremely close, with Srixon's average bounce height being 158.9 cm and Wilson's average bounce height
0.2 cm lower at 158.6 cm. These results are, again, to be expected due to the 3–piece design of these ball. However, the average bounce height of the
Strata ball (152 cm) was a surprise as it was the third most expensive ball and had the lowest bounce height. Dunlop and Top Flite's bounce heights
were average, being 161cm and 156.4cm respectively. As they were the cheapest balls, this was not unexpected. All of these golf balls weighed
approximately

Callaway Golf Case Essay
Summary: In 1998, Callaway, one of the most famous brands in the golf domain, has experienced its first loss of $ 27 million after 10 years of
growth. To resolve this problem, Ely Callaway, the founder of this company, wondered if CGC (Callaway Golf Company) would have to revise the
way it approached retailer relationships to raise more mutually beneficial. To address possible market confusion, should the communication strategy
shift? In fall 1999, Callaway faced amount of questions; the answers would guide him in refocusing CGC's retail channels, new–product development,
and marketing strategies.
As Ely Callaway's vision: "If we make a truly more satisfying product for the average golfer, not the professionals, and make it ... Show more content
on Helpwriting.net ...
2. Like Nike and Adidas, Callaway has become a well–known golf brand that customers have treated it as a professional sign. So there is difficulty for
the new brand to threaten Callaway's current market.
Power of suppliers:
1. As the case mentioned, Callaway adjusted the wholesale prices of Big Bertha metal woods rather infrequently because they are confident in their
own products with so many efforts on budget and R&D. They strongly believed that after using the products, customers would understand and accept
the reason why their products' prices were higher than others'.
2. Callaway spent lots of money on R&D, and that was why the prices were higher. So, for beginning golf customers, buying new Callaway clubs was
a daunting task, even if Callaway's target market aimed at the average golf player rather than professional golf player.
Powers of buyers:
1. CGC's target market – Average golfers (defined as playing 10 rounds minimum per year), generally had handicaps above 18, and bought new
equipment every two to three years.
2. Compare with woods and irons, putters were relatively inexpensive at around $100 each. Because putting was viewed as the most critical aspect to
the game and because most golfers were weak putters, they tended to update their putters fairly frequently and with less product research. In fact, many
golfers owned five or more different putters
Threats of substitute's

Five Forces Model of Competition Essay
Case #3 Analysis
Competition in the Golf Equipment Industry in 2009
Raquel Brickerson
MGT 495
CRN 22164538
Table of Contents
The Five Forces Model of Competition......................................pg.1
Driving Forces....................................................................pg.2
Marketplace changes............................................................pg.3
Strategic Map......................................................................pg.3
Attractive or Unattractive.......................................................pg.3–4
Strategic Map Model............................................................pg.5
1 * The Five Forces Model of Competition
The five forces analysis of competition consists of these five areas.
1). firms in other industries offering substitute products,
2). buyers, (3) potential new ... Show more content on Helpwriting.net ...
In 1997 to 2008, the cost of goods sold changed due to a decline in the rounds of golf being played, which caused equipment sales to decline as well.

This would also directly effect of the supplies of raw material. 5). Competitive pressures that stem from the different golf equipment retailers. There are
competition with on–course pro shops, off–course pro shops, and online golf retailers. * Driving Forces
The driving forces in the golfing industry that is the major underlying causes of change, is 1). Marketing innovation. The golfing industry needs to
find a way to spark the consumers' interest back into the golfing game. The number of rounds played per year declined from 2007 to 2008 by
nearly 9 million rounds. Since about 30 percent of golfers say that they stopped playing because the fees to play a round of golf are too costly,
there should be a decrease in golfing fees. 2). Changes in who buys the product and how they use it. The golfing industry should target a younger
age group of golfers. The decline in golfers took place among golfers who were married with children, and older golfers who were retired but had
health concerns and injuries. The golfing industry needs to make equipment, apparel and golf in itself more appealing so that the decline experienced
will start to bring a different crowd in as consumers. 3) Changes in cost and efficiency. Because sales are declining, the golfing industry may need to
lower the costs

Case Study Analysis Callaway Golf Essay
The key issues concerning Callaway Golf Company are:
*Relationship with its retail partners
*New product development
*Marketing strategy
Problem:
Callaway has experienced its first loss of $ 27 million after 10 years of growth. Competitors had finally caught up to Callaway's superior R & D
capabilities and are flooding the market with new products and promotions, raising the bar for consumers on when to replace their equipment.
Callaway's strategic success in 1988 to 1997 is highly credited to its R & D facilities. Their approach toward innovation and technology provided a
cutting edge against the other competitors in the market. The way Callaway was able to continue their differentiation features was through their highly
... Show more content on Helpwriting.net ...
They should provide discounts to retailers, which will provide better margins and more services in order to influence purchaser at the point of sale.
One price for all retailers avoids channel conflict. Track retailer behavior to provide varying volumes of sales call. Adopt ways to improve
relationship on one to one basis. Also, think of education on retail front. Sales people are the key figures for selling their products they should
motivate them, by providing incentives, rebates commissions etc the sales people should make surprise visits, as a customer to see how their products
are being displayed and to study the customer's behavior towards their products. They should provide the retailers with physical space for better
inventory management, loss of sales were accounted, because there was no replenishment.
The R & D facilities allowed them to continuously come up with new products in the market. In my opinion they are flooding the markets with many
new products, in a way they are confusing an average golf player with too many different types of golf club.
In a hurry to bring new products they are forced to sell off old products at discount. They are in a way cannibalizing their own products.
Their target market is an average golfer, but they should also target good and experienced players, who are the

Callaway Golf Case Study
1. Callaway 's strategy from 1988–1997 with respect to:
A. Research and Development From its initial existence R&D and innovative products had been the lifeline of CGC. When Callaway bought into the
company his first initiative was to develop original products. Innovation and superior performing products are important in golf because equipment is
thought to have a significant impact on player performance. Moreover, innovation was important because CGC had to be the technological leader to
sell its products at premium price and continue to exceed customer expectations. The industry was also characterized as being driven by new product
development because manufacturers were trying to bet each other to the next "best club" so CGC ... Show more content on Helpwriting.net ...
This was mostly like due to the fact that this outlet appealed mostly to experienced or avid golfers which were brand conscience, but did not depend on
their equipment for performance. Also on–course salespeople had less time to sell products due to the other duties they had to perform. Callaway Golf
Sales Company, a subsidiary of CGC, sold products to customers at wholesale. Products were sold through outside sales, in–house telemarketing, and
customer representatives. Outside salespeople performed many duties including physical inventory counts, running demo days, and training
salespeople. CGC used foreign subsidiaries and international golf club distributors to sale its products in more than 50 countries.
D. Price CGC had a premium pricing strategy. It was providing a high–quality product at premium price to the average golfer who was looking for a
product to five them an edge in performance. CGC also had consistent pricing and offered all retailers the same pricing structure regardless of the
volume they acquired. What is more, CGC rarely allowed retailers to advertise prices on its products. Foreign subsidiaries and international golf club
distributors did receive products at a reduced export–pricing discount to ease the effect of international distribution, advertising, and selling expenses.
2. Callaway 's strategy was successful mainly because its innovative edge. During

Process Essay: How To Play Golf
Almost everyone has heard of the sport where you hit a little white ball around on the green grass. Golf can be a difficult sport if proper techniques
are not taken into consideration. In order to play golf properly, first equipment is needed especially a driver, irons, and a putter. As a beginner golfer,
the most helpful tips are to keep their eye on the ball and light grip pressure, Hand–eye coordination is key. Next step in learning to be good, the proper
swing plane and the transition will create a great swing. If a golfer follows all these tips and procedures, they will become a better golf and lower their
handicap.
To play golf properly, first, you must have golf equipment. There is a variety of golf equipment from Titleist to Callaway. Finding the right clubs
might take a while, and can be costly. High–quality equipment will be expensive, but it will last longer. New technology has made the game easier
for amateurs and even the professionals. Golf companies have implemented swing weight and adjustable clubs to suit your unique golf swing. First, a
driver is the most important club in the bag, because you will get the most distance from this club. Next in the order are Irons, they are used for shorter
yardages ... Show more content on Helpwriting.net ...
The reason it is so important is because it helps you make solid contact with the ball. Without the coordination, there is a high chance of missing the
ball on the downswing. Callaway golf company has produced a line of golf balls that increases the hand–eye coordination ratio. The company
implemented Truvis technology which gives the ball a new cool look like a soccer ball. The correct way to grip agolf club is like a baseball bat, right
hand on the lower portion of the grip and left on top. Having light grip pressure release power. Gripping the golf club hard with create an inconsistent
downswing. Lacking the basic skills will result in bad consistency all throughout the

Chapter
Rajiv lal Edith D. Prescott
.
Ely Callaway, Callaway Golf Company 's (CGC) 80–year:old founder, chairman, and chief executive officer, sat in the conference room one sunny day
in fall 1999 contemplating his company 's remarkable story. He wondered how that story might continue in light of some recent internal and external
challenges. In the span of a decade, Callaway had built CGC into the dominant player in the golf equipment business, despite charging premium
prices. CGC sales had increased steadily from $5 million in 1988 to over $800 million by 1997 (see Exhibit 1 for income statements). He accomplished
this with the clarity of his vision: "If we make a truly more satisfying product for the average ... Show more content on Helpwriting.net ...
Company History
CGC was led by Ely Callaway (pronounced E–lee), a powerful motivator who defined the company 's culture. People described the LaGrange,
Georgia, native as charming, feisty, optimistic, energetic, and inspirational. A distant cousin of golf legend Bobby Jones, Callaway was a golf club
champion at 20 and a three–handicap golfer at 40. In recent years he found that he did not have much time to play golf. He said, "I spend my time
trying to put myself in the place of the average hacker and see how they will react to our new woods and irons."1
The Start of CGC
The day after he sold his winery in 1982, Callaway received a cold–call from the cashstrapped founders of a small golf manufacturing company named
Hickory Stick USA, Inc. Callaway saw potential in the antique–looking, yet modern clubs, and decided to invest $435,000. He changed the name of the
company to Callaway Hickory Stick, Inc. and focused on expanding the product mix. The designs were essentially knock–offs of existing companies '
clubs (the only difference lay in the hickory shafts); thus, Callaway 's first priority was to develop original products. Callaway put in $2 million of his
own money over the first three years, thinking it would take the company eight to ten years to break even.
1
Glenn Sheeley, "Callaway led golf 's charge out of the woods,"

Callaway Golf Case Analysis
Strategic Report for the Callaway Golf Company http://economics–files.pomona.edu/jlikens/SeniorSeminars/harknessconsulting2008/pdfs/Callaway.pdf
External Analysis
Competitive Analysis
Callaway Golf (ELY) operates in the Sporting and Athletics Goods Manufacturing Industry Segment (NAICS Code 339920). ELY's operations are split
into five primary segments: drivers, irons, putters, golf balls and accessories.
Products in the drivers category include drivers, fairway woods and hybrids sold under the Callaway Golf, Ben Hogan and Top–Flite brand names.
Callaway is currently #2 in this segment, only behind TaylorMade (Adidas), with a 19.5% share domestically and a 21.0% share in the U.K.
Products in the irons category include irons and wedges sold under the Callaway Golf, Ben Hogan and Top–Flite brand names. Callaway holds the
number one position in the iron market, with a 25.6% share domestically and a 24.6% share in the U.K.
Products in the putters category include putters sold under the Odyssey, Callaway Golf, Ben Hogan and Top–Flite brand names. Callaway is currently
the #1 vendor in the putter market, with a 38.5% share domestically and a 37.4% share in the UK.
Products in the golf ball category include balls sold under the Callaway Golf and Top–Flite brand names. Callaway holds the #2 position in the golf ball
market, with a 12.2% share domestically and a 13.5% share in the U.K.
Products in the accessories category include golf bags, footwear, gloves, headwear,

The Role Of Golf In The United States
Demographic factors have given us numerous opportunities. Golf is a versatile sport, any skill level, and any age can play. In the United States 29
million people played at least one round of golf in 2014. (Pringle, 2014) At the beginning of 2015 the U.S. population was at over 320 million
citizens, golfers account for 11% of the total population. (U.S. Census) Age plays a significant role when targeting to sell. The average age of a
golfer in 2014 was 54 years of age which is dramatically higher than other sports. When selling golf products you have to appeal to the younger aged
groups as well as the older ages (Pringle, 2014). Golf is a segment of the sports market, so when you go into selling specialized golf balls you enter a
niche market.

Critical Thinking
1. What is the DSPD philosophy? Explain how the operations of the different teams reflect the DSPD philosophy.
The DSPD philosophy is Callaway's belief of making demonstrably superior and pleasingly different products to golfing. This idea was established by
Callaway's previous business experiences and it served as the primary guiding principle for this company, the company that grew out of Hickory Stick
USA. Their teamwork is built around five different areas: research and development, information systems, manufacturing, sales, and general
/administrative services. The research and development team is responsible for designing, building prototypes, and testing the company's premium golf
equipment. The DSPD theory is evident here because ... Show more content on Helpwriting.net ...
1. Identify a competitor of Callaway Golf. How does Callaway Golf's DSPD philosophy compare with the fundamental management philosophy of the
competitor? What managerial insights do you gain from making this comparison?
One major competitor of Callaway Golf is the Karsten Manufacturing Corporation. They are the manufactures of the world renowned PING golfing
equipment. According to their "about us" section on the official PING website, they are a family owned company founded in 1959 in the garage of
Karsten Solheim. His frustration with his putter inspired him to create a new one that made a "pinging" sound when striking a golf ball. These are the
roots to a foundation that has become quite successful today. They feel that this success is owed to their philosophy of crediting their numerous
innovations with perimeter weighting, custom fitting, and the use of investment casting in the manufacturing of golf clubs. Solheim insists on
adhering to strict engineering principles and tight manufacturing tolerances to raise the level of product performance and quality throughout the golf
industry. With Solheim's death in 2000, his youngest son took over the managerial position and continues to practice these methods. Their products can
be found in more than 70 countries today. In comparison to Callaway Golf, Steinway almost seems to measure up. They too focus on innovation and
bringing the

Callaway Golf Company History
Callaway Golf Company History
Callaway Golf Company CEO Ron Drapeau told CBSMarketWatch, "We have become known as the company that brings innovation to the game for
the average golfer. We 're not focused on the elite professional players. It 's been a very successful approach for us."
But that is not to say that Callaway clubs are spurned by professionals. By the end of the 2000 professional tour, Callaway Golf ranked as the
most–played manufacturer of drivers, fairway woods and irons on the world 's five major professional tours combined.
Best known for its Big Bertha, ERC II, C4, Hawk Eye VFT, and Steelhead drivers and fairway woods, Callaway Golf also makes irons, wedges,
Odyssey White Hot and Dual Force putters, and several ... Show more content on Helpwriting.net ...
With Ely Callaway back at the helm, Callaway Golf proceeded to introduce a new set of titanium metal woods, and its low–center–of–gravity
tungsten–injected titanium irons. The metal woods reportedly gave the ball a more penetrating flight, while the irons facilitated long trajectory shots.
In February 2000, Callaway Golf introduced its much–anticipated Rule 35 golf balls. Named after the unofficial 35th Rule of Golf, which admonishes
the player to "enjoy the game," the balls ' superior performance made them the Number 2 ball in usage, top 10 finishes and wins in the five major
professional tours in their first year in play.
In 2000, Callaway Golf announced that it would produce a new forged titanium driver. But with the introduction of its so–called ERC II Forged
Titanium Driver later that year, Callaway Golf suddenly found itself double–bogeyed. Although the new driver was ruled eligible for play overseas (it
was actually rated the top driver in Japan and the number–one driver on the Japan PGA tour), it was ruled to be non–conforming to the United States
Golf Association 's (USGA) limits on the coefficient of restitution В– that is to say, its action was too spring–like В– and the club was therefore deemed
unacceptable for play in tournament events where USGA Rules apply.
By mid–2002, the USGA had decided that the banned drivers would be legal for use by recreational golfers В– but not for professionals В– until 2008,
after which time they would again be

Callaway Golf Company Case Analysis Essay example
1.)The defining business and economic characteristics of the golf equipment industry can be measured by looking at the makeup of the industry
itself. The case states that there are approximately 26 million Americans who play golf. 5.4 million play at least twice a month. These numbers are
expected to grow by 1 to 2 percent a year until at least 2010. Of the U.S. golfers, 25% are seniors, 5.7 are women, and 2.1 million are juniors. The
typical golfer is a 39 year old man who earns about $66,000 annually. Golf has also started to expand globally with 16 million and 2 million golfers in
Asia and Europe respectfully. In 1999, the golf equipment industry took in about $2.7 billion in wholesale sales (2nd only to ... Show more content on
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The amount of inventory is still pretty high $98 million. If Callaway can lower it inventory, then other costs will decrease and improve the financial
performance.
6.)Callaway's strengths include a great research and development department, a recognizable name brand, being innovators in the golf equipment
industry, maintaining strict guidelines to ensure the quality of all its products is superior, good leaders (mainly Ely Callaway) and having great
customer relationship skills. A couple of Callaway's weaknesses are a relatively low stock price and high levels of inventory. Some opportunities
include expanding its product lines into new areas like golf balls; going after different segments of the market like the beginner golfers; improving its
marketing campaign by signing new endorsers; and building/designing new golf clubs that will continually revolutionize the golf industry. A few
threats facing Callaway including losing the gap in innovation with its competitors; a downturn in the golfing environment; changes in leadership may
cause the company to suffer; and losing market share to current or new competitors.
7.)Callaway structures it value chain so that each component always results in improving the product's worth to the end customer. At the beginning of
the chain, Callaway tries to produce clubs that will create the best performance by its users. Callaway spends more money on research and

Callaway Golf Club Research Paper
Are Callaway Clubs The Best Choice For You
No matter how long you have been golfing, it is likely that you have heard of the Callaway brand of golf clubs and accessories. They are one of the
top suppliers for the entire golf industry. If you are in the market for new golf clubs, you will likely want to consider Callaway products at some point.
They are certainly not for everyone (as no golf club is), but they offer a large enough range of products that you might just be able to find something
that you would like to use. Here I will describe some of the things offered by Callaway clubs, and what sorts of golfers use them.
Callaway is very famous for its drivers that are able to hit balls further than any other drivers. Most of the time these ... Show more content on
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You can use some of these specially designed clubs or club sets to familiarize yourself with the game and become very proficient with your strokes.
This will allow you to become an excellent player before you even begin to spend huge amounts of money on your items. Some of the best items
include the adjustable golf clubs, or the half–set that leaves you with just the basic choices to familiarize yourself with. Look for these products are
your local club store, or in an online Callaway catalog.
Callaway's product line doesn't end at golf clubs. Everything else you need for the game, you will have the option of buying through Callaway. This
includes golf apparel, which everyone knows is a must–have when you are going to spend a day on the course. Golf shoes are the best for moving
across the grass that makes up the ground of the golf courses, and other golf apparel such as hats and shirts will protect you from the brutal elements
involved in the game. If you are an easily sunburned person, then you should find the proper shading and protection in order to avoid having your skin
burned while you

Case Analysis Of Callaway Golf Company
Case Analysis of Callaway Golf Company Callaway Golf Company is considered a leader of the golf equipment industry through its development of
technologically advanced golf clubs that compensated for the most amateur players with poor swings and helping them achieve a better golf game with
the introduction of Big Bertha in 1990 and launched Callaway Golf Company forward at great speed into notoriety of the golfing community (Gamble,
2000). This analysis will thoroughly dive into the many parts of the case of the Callaway Golf Company.
Entrepreneur and Innovator: Ely Callaway
Behind any great company usually sits a great leader and entrepreneur. For Callaway Golf, this was no exception. Ely Callaway was known for his
business philosophy: "Demonstrably Superior, Pleasingly Different"– he believed that "in business, in leisure and in life, you need to differentiate
yourself, stand out, be exceptional, fill a niche, over deliver and always, always stand for your principles and deliver what you promise (Callaway
Golf Company)." Throughout his career, Ely Callaway found business success– as president of Burlington Industries, and successful creation of both
Callaway Vineyard and Winery and then Callaway Golf Company– utilizing focused differentiation strategy and blue ocean strategy successfully
(Gamble, 2000). Ely Callaway was an iconic CEO in his own right. He understood focused strategy and could find the blue oceans among the miles of
red. His fame and strong reputations

Callaway Golf Clubs
Callaway Golf Clubs
Term Paper Assignment
Webster University
Marketing 5000–02
Fall I 2010
Rashad A. Myers
Executive Summary
Callaway is a premium golf equipment company which focuses on increasing the overall experience of playing the game for those that use its products.
The company will increase market share and profits by focusing on specific target markets over the next 12 months.
Environmental Analysis
Socio–Culturally, Callaway is affected by the fact that the majority of its customers are Caucasian and male. Further, this demographic is largely made
up of male baby boomers, and this segment is aging rapidly, with many giving up the game due to health reasons. Also, children are not taking up the
game with the ... Show more content on Helpwriting.net ...
Then, in 2009, they brought out the X–22 series of irons. Callaway purchases its raw materials from vendors, so from that respect, there is a level of
dependency on suppliers. If their prices go up, then Callaway would need to raise theirs also, or their profit margins would be squeezed.
Opportunities
Social Media represents an opportunity for Callaway to interact with customers in a significant way. They are able to listen to what is being said about
them, react to this feedback, and communicate new products, promotions and events. International sales represent 50% of Callaway's revenues.
Callaway looks to replicate their domestic success worldwide. Due to the growth in popularity of the sport of golf over the past 13 years, primarily due
to the success of Tiger Woods, there is a growing market for clubs among young, learning golfers. Again, the Tiger Woods effect can be seen as gold
is no longer a suburban, primarily Caucasian sport. Golf has been introduced to children and people of all walks of life, and should continue to gain in
popularity. Callaway has put itself in a position to add to its brand identity with its Lamborghini partnership. Lamborghini and Callaway joined forces
on a composite formula called Forged Composite. The composite is a third less dense than titanium, which translates to a lighter, thinner club head,

which translates to increased club head speed, ball speed and

Callaway Golf Company Case Analysis
I. Industry and Competitive Analysis
Callaway Golf Company is the leader in the golf equipment industry. Its founder, Ely Callaway, is an outstanding businessman, who made among
others a winery a $14 million business where nobody would have even tried. His strategy always paid off, which is to provide best quality at a
reasonable price (focused differentiation strategy). His last enterprise, the golf equipment business, portrays his outstanding managerial abilities and
provides insight how to gain long–term competitive advantage.
1. Dominant economic characteristics of the industry environment
26 million US–Americans play golf. Their number is expected to grow 1 to 2 percent annually through 2010. ... Show more content on Helpwriting.net
...
The wholesale value of equipment increased from $740 million in 1986 to $2.7 billion in 1999, where about 25% accounts for golf balls. According to
my statistical analysis, the sales will have grown to $5,22 billion in 20102. In the international wholesale market, the value of the golf ball market was
estimated at $1.5 billion. Golf equipment ranks second in the national wholesale sales of sporting goods.
US and international markets for golf clubs moved to maturity in 1997 and there was only modest growth in the early 2000, because most golfers
already upgraded their equipment and were waiting for major new innovations.
In any case, Ely Callaway did succeed in his efforts and BB driver and its "sisters" became the best golf product of the century by golf equipment
companies and Ely Callaway was elected the most influential golf trade person of the 1990s.
Golf ball production also became a big business. Callaway decided to build own facilities from the scratch, whereas e.g. Nike decided to outsource
the production. Callaway made only two sorts of ball, the blue for soft feel and the red for firm feel. That means, they focus on the mass market, as
they deny "techno–babble" and alike. They did change the historical packaging size and design according to true customer needs and likes and did
choose a differing logo as well. The investments and efforts paid off, because analysts expect 2 to 3

Comparing Cull And Gus In 'The Grapes Of Wrath'
Call is the total opposite of Gus in almost every aspect. He was the ranger captain that Gus was a part of and he committed his life as one. On page
28, McMurty defines Cull as a person that is always on his feet and compare Cull to Gus stating "Call was not one to sit on a porch all day, playing
cards or gossiping" and states "He intended to work; He had just grown tired of always providing the example." This shows that his life as a captain
has be intergraded in his life and he cannot change his life style. In contrast, due to his life style, people respect him even after he quit being the
captain ranger. This is due to the way he looks up front; on page 17, McMurty describes him as a shorter man compared to Gus and other characters
but when people looked him in the eyes, it was if they were shorter than Cull. In fear and respect, people such as Pea call him "captain" (pg 18) and
men look up to both Cull and Gus but due to his stature, Cull receives more respect (pg 27). Cull is perceived as a stubborn and selfless person and
is always hard on himself and calls himself lazy and that is why he continues to work till sun down. The author alludes Cull's stubborn personality to
the horse Cull is trying to tame or "break".

Callaway Golf Case Study
LaToya Owens, Chris McMullin, Robb Spears and Crystal Shumpert
Indiana Wesleyan University
Key Success Factors Callaway Golf Company's (CGC) had seven key success factors to include: the founder's vision; product design; pricing; product
development; sales; marketing and the media. The founder, Ely Callaway's vision is: "If we make a truly more satisfying product for the average
golfer, not the professionals, and make it pleasingly different form the competition, the company would be successful." However, this vision is change
from other company's visions; the difference being that the price is not mention. Product design: CGC introduced three new designs in golf clubs in
1988, the first, short, ... Show more content on Helpwriting.net ...
CGC had to be on the leading edge of the latest technology and also exceed the customer's expectations. Research and development was a critical
part of its success and future success that CGC had to place major focus on. They had to maintain their market edge plus solidify their hold as the
market leader by consistently releasing new models that differentiated it from competitor's products and CGC's own products as well. If a product
stayed in the market too long, the sales would eventually peak and then start a downward trend, so getting out at the peak is the key. With the
product differentiation being one key to Callaway's success, the next focused on the consumer knowledge of the piece of equipment. New
technology is good for the golfing community, but if no golfer is aware of the product or how to use it to its fullest potential, the customer will
quickly become dissatisfied. The CGC used television, golf magazines, trade publications, and word of mouth as its primary forms of advertising.
The company also endorsed professional golfers on all five major tours (PGA, LPGA, Senior PGA, European PGA, and NIKE) as a vehicle to
promote its products. CGC used these professional endorsements more as a validation of the effectiveness of the product in its marketing campaign.
With the professional endorsement by these golfers, the target market was able to see the product in action and also learn how to properly use them.
With practice, these average

Marketing Plan Callaway Golf
Marketing Opportunity Analysis – SWOT
Strengths
Innovation – Callaway delivers cutting edge technologies to its customers with new products and improvements to existing products.
Cash position and lack of debt – Callaway has no debt, and this enables Callaway to go after different acquisitions and investment opportunities that its
weaker competitors are not able to pursue.
Size – Callaway is the #1 golf manufacturing company in the world. With Callaway's size, it gives Callaway power and advantages over competitors.
Aggressive acquisition strategy – Callaway's size and cash flow capabilities allow Callaway to acquire companies such as Odyssey , Ping Golf for its
technology, manufacturing facilities, and increased market ... Show more content on Helpwriting.net ...
Patent Ability – Callaway can plan for patenting new technology used for product development. This intellectual property is unique only to Callaway
for the benefit of their customers.
Golf Club Market – With Callaway's acquisition of Odessey putters, Callaway will be able to broaden its appeal to different markets to expand its
business.
Threats
CGC golf users switching to another Brand – CGC should balance the catch –22 of new product development otherwise it cannot prevent existing CGC
golf club users from switching to another brand.
Private Label Products– Retailers are killing the market share of CGC by selling private label product to beginners and Average golfers.
Impersonators/Knock–Offs – Callaway will have to deal with the growing threat of people in Asia and the Middle East pirating its clubs and selling
them at a lower cost over the Internet and in Callaway's U.S. and international markets. This can have a negative affect on Callaway's brand image and
its sales.
Decrease in number of people playing golf – A decreased number of golfers involved in the sport would lead to decreased sales and profits.
Acquisition target – A decrease in sales and profits could make Callaway an acquisition

Callaway Golf Company (CGC) Harvard Business School Case Study Ely Callaway had a vision, "If we make a truly more satisfying product for the
average golfer, not the professionals, and make it pleasingly different from the competition, the company would be successful" (Lal & Prescott, 2011, p.
1). Key factors that led to Callaway's success included his vision, his understanding of consumer behavior, his product variety, and his ability to build a
premium brand. Furthermore, the company's relationship with its retail partners, the company's new product development, and the company's marketing
strategy were key contributors to Callaway Golf Company's success between 1988 and 1997. Callaway understood the competitive nature of ... Show
more content on Helpwriting.net ...
Annual plan controls helped determine if the new product results were being achieved. Profitability controls determined if the new product was making
or losing money. Efficiency controls balanced the spending and marketing expenditures. Strategic controls confirmed whether the company was
targeting the best opportunities with the retailers, media, and advertising (Kotler–Keller, 2009, p. 331–333). Richard Helmstetter, vice president and
chief of new products, joined Callaway Hickory Stick, Inc. in 1986. He transformed CGC ". . . from a niche producer to an innovation powerhouse.
. ." (Lal and Prescott, 2000, p. 2). Helmstetter viewed research and development differently than others in the industry. He challenged the scientists,
engineers, and golfers he had hired to answer questions like "Where does backspin come from?" and "Why does a shot on the club toe hook left
instead of right?" (p. 2). Helmstetter was correct in believing that by answering these types of questions the company would create better clubs. New
product innovations included the development of the S2H2 (short, straight, hollow, hosel) model which redistributed the weight of the hosel. This
allowed the weight to be better utilized elsewhere in the club. Following the S2H2 model was the development of the Big Bertha. It was a club with a
bigger club head. The larger head allowed for fewer

Swot Analysis Of Callaway Golf
External Analysis
Competitive Analysis
Callaway Golf (ELY) operates in the Sporting and Athletics Goods Manufacturing Industry Segment (NAICS Code 339920). ELY's operations are split
into five primary segments: drivers, irons, putters, golf balls and accessories.
Products in the drivers category include drivers, fairway woods and hybrids sold under the Callaway Golf, Ben Hogan and Top–Flite brand names.
Callaway is currently #2 in this segment, only behind TaylorMade (Adidas), with a 19.5% share domestically and a 21.0% share in the U.K.
Products in the irons category include irons and wedges sold under the Callaway Golf, Ben Hogan and Top–Flite brand names. Callaway holds the
number one position in the iron market, with a 25.6% share domestically and a 24.6% share in the U.K.
Products in the putters category include putters sold under the Odyssey, Callaway Golf, Ben Hogan and Top–Flite brand names. Callaway is currently
the #1 vendor in the putter market, with a 38.5% share domestically and a 37.4% share in the UK.
Products in the golf ball category include balls sold under the Callaway Golf and Top–Flite brand names. Callaway holds the #2 position in the golf ball
market, with a 12.2% share domestically and a 13.5% share in the U.K.
Products in the accessories category include golf bags, footwear, gloves, headwear, towels, umbrellas and other accessories, as well as the sale of
pre–owned products through Callaway Golf Interactive. Revenues in this segment are also

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