...Strategic Report for The Callaway Golf Company Innovation through Collaboration Scott Damassa Amy MacKinnon Alisher Saydalikhodjayev April 14, 2007 Harkness Consulting Table of Contents Executive Summary ................................................... 3 Company Background ................................................ 5 Competitive Analysis.................................................. 7 Internal Rivalry ................................................................ 8 Entry .............................................................................. 12 Substitutes & Complements ........................................... 13 Buyer & Supplier Power ................................................. 14 SWOT Analysis ..........................................................15 Strengths ....................................................................... 15 Weaknesses ................................................................... 15 Opportunities ................................................................. 16 Threats........................................................................... 16 Financial Analysis .....................................................16 Strategic Issues & Recommendations .......................21 References…………………………………………………………25 Harkness Consulting 2 Executive Summary Harkness Consulting has been asked by Callaway Golf to assess its strategic market position and to make recommendations for improving...
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...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 numbers that they used to. Instead, they opt for video games and other sports. Politically, Callaway is not affected by legislation. Callaway is certainly impacted by what is going on economically. Golf is a relatively expensive sport to play with any regularity, when you take into consideration the equipment costs and green fees. One of the first activities that are limited is recreational spending in a down economy. The company will suffer if people’s discretionary spending is limited for extended periods of time. Callaway is affected by Legal and Regulatory forces because its governing body, the United States Golf Association (USGA) can make changes to equipment any time it wants to. Callaway incorporates technology heavily in their...
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...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 Introduction 5 a. Background 5 b. Purpose and Objectives 6 II Analysis of the Environment 6 a. External Analysis 6 a.a. Market 7 a.b. Competition 7-8 b. Internal Analysis 8 b.a. Performance 8 b.b Customers 9 III SWOT Analysis 9 a. Opportunities 10-11 b. Threats 11-13 c. Strengths 13-14 d. Weaknesses 14-15 IV Fundamental Marketing Strategies 15 a. Positioning Strategies 16 b. Competition Strategies 16 V Marketing Mix Strategies 17 a. Product 17 b. Price 17 c. Place 17 d. Promotion 17 VI Implementation and Control 18 a. Implementation 18-19 b. Control 19 VII Conclusion 19 Executive Summary Every golfer's...
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...IMPLEMENTATION of NEW TECHNOLOGY In 1986 Callaway hired Richard Helmstetter as the chief club designer. He initiated major developments in the research of clubs designed and marketed by the company. This culminated into Callaway establish a strong product portfolio. In 1987, Callaway became the first golf company to use computer controlled milling machines to produce innovative club designs. These clubs helped eliminate/reduce the impact of variables such as directional control, distance, etc. during the game thus making it easy to play. Callaway consistently produced innovative products at an impressive rate thus appealing to its present customers at the same time attracting new customers. Examples include: 1988 Introduced S2H2 technology 1991 Big Bertha club design is launched ruled the market in the 90s 1993 Big bertha Heavenwood club introduced 1994 Big Bertha stainless steel woods and Irons are introduced ACQUISITIONS: In 1997, Callaway acquired Odyssey which was one of the leading manufacturer of golf clubs at that time. This move of Callaway had several advantages: 1 This acquisition added more variety of clubs to the product portfolio. 2 Increased market share which is directly proportional to the increase in customer base 3 Reduced competition 4 More manufacturing capacity with Callaway can use Odyssey’s establishments GREAT CUSTOMER RELATIONS/ENDORSEMENTS: Callaway established great rapport with many leading golf players of the time by working closely...
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...Company Profile 3/5/12 2:00 AM Close Callaway Golf Co D-U-N-S® Number: Company Name: Mail Address: 05-557-1012 Callaway Golf Co 2180 Rutherford Rd Carlsbad, CA, USA 92008-7328 View Map San Diego San Diego-Carlsbad-San Marcos 1 760-931-1771 www.callawaygolf.com Location Type: Subsidiary Status: Manufacturing Indicator: Plant/Facility Size: Owns/Rents: Foreign Trade: Year Established: Ownership: Stock Ticker: Headquarters Non Subsidiary Manufacturer 135,000 Sq Ft Owns Import 1982 Public ELY County: MSA: Country Phone Code: Phone: Web Address: Employment: (Individual Site) Current Year: 2,126 1 Yr Prior: 2,126 | Trend: 0.00 2 Yr Prior: 2,126 | Trend: 0.00 3 Yr Prior: 2,126 | Trend: 0.00 Sales: (All Sites) Sales: (Individual Sites) $967,656,000 US (Actual) $967,656,000 US (Actual) Executives: Ms Bonnie Thacker - Management Ms Katy Tomak - Administrative Assistant Mari Wright - Services Mr Bruce Parker - President Mr George Fellows - President; Chief Executive Officer Mr Neil Howie - Managing Director Mr Brian P Lynch - Corporate Secretary; Vice President Mr Bob Penicka - Chief Operating Officer Mr David A Lverty - Chief Operating Officer Mr James Hill - Executive Officer Mr Steven C McCracken - Chief Administrator; Executive Ms Christine Rousseau - Executive Vice President; Chief Information Officer Mr Brad Holloway - Executive Vice President Mr William F Knees - Senior Vice President; Marketing Staff Mr Mike Rider - Senior Vice President Mr John F Melican...
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...36k16.2 Lê Thị Hằng Sương 36k16.2 Nguyễn Thị Thùy Giang 36k16.2 10/09/2013 QUẢN TRỊ CHIẾN LƯỢC QUẢN TRỊ CHIẾN LƯỢC MỤC LỤC 1.Tổng quan về Callaway Golf 2 1.1. Giới thiệu công ty 2 1.2. Vài nét về người sáng lập 2 1.3. Các sản phẩm chính của công ty 3 1.4. Các thành tựu về các giải thưởng đã đạt được 4 2.Lịch sử hình thành và quá trình phát triển 4 2.1. Lịch sử hình thành 4 2.2. Quá trình phát triển 4 3.PHÂN TÍCH SỨ MỆNH VIỄN CẢNH 5 3.1. Sứ mệnh 8 3.2. Viễn cảnh 10 1. Tổng quan về Callaway Golf Callaway Golf là công ty sản xuất gậy golf hàng đầu thế giới 1.1. Giới thiệu công ty * Thông tin chính * Tên đăng ký kinh doanh: CALLAWAY GOLF * Hình thức pháp lý: Công ty cổ phần * Thành lập: 1982 * Trụ sở chính: Carlsbad,California, Mỹ * Mã chứng khoán: ELY tại sàn New York * Lĩnh vực kinh doanh: Công ty chuyên thiết kế, sản xuất, và bán thiết bị , phụ kiện golf và các sản phẩm liên quan đến golf. Công ty thiết kế sản phẩm của mình dựa trên công nghệ tiên tiến. Sản phẩm của công ty được thiết kế cho người chơi golf ở tất cả các cấp độ kỹ năng cả nghiệp dư và chuyên nghiệp, và thường được thiết kế để phù hợp với các nguyên tắc của Hiệp hôi Golf Mỹ. * Dưới thương hiệu Callaway và Odyssey, Callaway sản xuất và bán gậy golf, bóng golf, và bán quần áo golf, giày dép và phụ kiện tại hơn 110 quốc gia trên toàn thế giới, với khoảng 2.300 nhân viên. * Các số liệu tài chính cơ bản năm 2012 * Doanh thu:...
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...Questions: 1. Describe the company business. Is management pursuing strategies that you think will add value to shareholder wealth? Answer: Callaway Golf Company (ELY) is a company that produces high-end equipment for amateurs and professionals to play Golf. The company was created by Ely Callaway Jr. in 1982. With the increasing demands of hiring new specialists as well as increased capital demand, Callaway Golf Company decided to take their company public in 1992 on the New York Stock Exchange (NYSE) under the ticker ELY. Since then, ELY has focused primarily on the business-to-consumer market selling woods, irons, wedges, putters (Odyssey brand), golf balls, as well as accessories. Many golfers including myself hate to admit that it is nearly impossible to play golf all year round. Much of this is due to unplayable conditions during the late fall to early spring seasons. During this time period, the demand for Callaway’s products start to diminish. Several companies whose primary operations are dependent on Golf have suffered financially over the past few years because of a decrease of interest in the game as well as less than perfect economic conditions. From 2010 to mid 2013, Callaway has posted consistent net losses. These financial hits have caused Callaway to sell off some of its low-performing subsidiaries including Ben Hogan and Top Flite. From an investor’s standpoint, it has been difficult to find any successful cyclical business on an earnings per share...
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...MARKETING MANAGEMENT (MK101) Term 1: Section D Week 2 4 July, 2012 2 Agenda • Session Contents • Levitt and Marketing Myopia 4 July, 2012 © Krishanu Rakshit, IIMC 3 MARKETING MYOPIA By Theodore Levitt, HBR, 1960, 1975, 2002, 2004 4 July, 2012 © Krishanu Rakshit, IIMC 4 Marketing Myopia • Few observations: • The Railroads are in trouble today not because that need was filled by others….. But because it was not filled up by the railroads themselves. • The history of every dead and dying ‘growth’ industry shows a selfdeceiving cycle of bountiful expansion and undetected decay • … then the absence of a problem leads to the absence of thinking. • Mass production does indeed generate great pressure to ‘move’ the product. But what usually gets emphasized, is selling, not Marketing. 4 July, 2012 © Krishanu Rakshit, IIMC 5 Marketing Myopia • Few observations: • The marketing effort is still viewed as a necessary consequence of the product- not vice versa, as it should be. • This is not what the engineer managers say, ……. and this accounts for their concentration on what they know and what they can controlnamely product research… • …. Organization must learn to think of itself not as producing goods or services but as buying customers … .. 4 July, 2012 © Krishanu Rakshit, IIMC 6 Marketing Myopia • So, where do successful businesses like American Railroads go wrong? • Narrow definition of their business ...
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...Callaway Golf Company, through the use of technology, design and manufactures premium, innovative golf clubs that are demonstrably superior to, and pleasingly different from, its competiton. Callaway Golf’s primary products, which incorporate the S2H2 design concept, currently include the Big Bertha® War Bird® Stainless Steel Metal Woods, Great Big Bertha® Titanium Metal Woods, Biggest Big BerthaTM Titanium Drivers, Big Bertha® X-12TM Iron and Great Big Bertha® Tungsten. TitaniumTM Irons. Callaway Golf’s wholly-owned subsidiary, Odyssey Golf, Inc., makes and sells Odyssey® putters and wedges with Stronomic® and LyconiteTM inserts. 2000 Callaway luôn tin rằng cách để phát triển môn golf này là làm nó thú vị hơn cho các tay golf. Đó là lý do tại sao chúng tôi luôn nỗ lực thiết kế, sáng tạo, xây dựng và bán nhiều gậy golf nhất trong lịch sử của trò này – trao cho các tay golf nhiều cơ hội để đạt thêm những cú “great” mỗi vòng. Chúng tôi dự định tiếp tục cố gắng phát triển trò này bằng cách giúp mọi người thưởng thức trò chơi. – Ely Callaway 2003 Công ty Callaway golf được điều khiển trở thành tổ chức thế giới về thiết kế, phát triển, tạo lập và mang lại màn biểu diễn vượt trội và những sản phẩm golf khác biệt đẹp mắt, kết hợp công nghệ đột phá lan sang những sản phẩm với dịch vụ khách hàng vượt trội đáng kể, và tạo ra lợi nhuận cho cổ đông vượt chi phí vốn, chúng tôi chia sẻ niềm đam mê của mỗi người chơi golf, cam kết với tài năng và công nghệ của chúng tôi làm tăng sự thỏa...
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...have joined the industry since Callaway first began and they have been narrowing the gap in terms of a competitive product at a cost that is equal to, if not less than Callaway’s for a like product. Therefore, should Callaway continue to maintain their leading-edge technology, focus on average golfers target market and build strong relationship with retailers? Objectives: _Maintain customer value _Obtain a growth in sales _Maintain Premium pricing model _Increase brand awareness Alternatives: 1. Expand its operation in international markets 2. Focus on the baby boomer segment 3. Develop the variety of products in terms of golf accessories 4. Strengthen relationships with retailers 5. Sponsor golf camp and university or school tournaments. 6. Invest in R&D to maintain their leading-edge technology Consequences of alternatives: (Table 1) Callaway should focus their marketing programs on the baby boomer generation segment. One of this target segment’s characteristics is that people at the age of 50-60 have more time to play golf as they are retired and tend to remain brand loyal. Moreover, baby boomers have more disposable income, which makes them more likely willing to pay a premium for higher quality clubs. Another alternative for Callaway Golf Company is to develop its products in terms of accessories and create a star golfer model. By doing that, they would have lower cost than producing golf clubs and golf balls. Furthermore, because...
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...Callaway Golf Company — 2009 Case Analysis Peter Peter MGMT 637 Strategy Management Professor. Garcia, Edmundo, M.I.B.A Mitjans 1 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 had to manufacture products that were differentiated from its own existing products as well as those of its competitors. The S2H2- introduced in 1988. This club redistributed weight to the striking area of the club head. The Big Bertha metal woods introduced in 1991. The innovative feature of Big Bertha was that it provided a larger "sweet spot". The oversized head made it easier to make contact with the ball so in turn made drivers more widely used by average golfers and revolutionized the way clubs were manufactured. The Great Big Bertha Titanium- launched in 1995. Titanium clubs increased the moment of inertia by moving material away from the club...
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...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 difficulty of playing. - Time consuming for practice: According to the limited innovation of golf equipment, golfers need lots of time to practice while they also have take responsibility to their job and spend time with their families. - High golf fee: Some golfers realize that golf fee is high, as a result, they cannot practice frequently. 2. Discuss the importance of innovation, brand, performance, and price in the golf equipment industry. Ans: Good reputation and image can lead to brand loyalty. That’s why many brands use lots of advertising expenditure to promote their brands. As the leading sports brand in the world, Nike has a clear marketing advantage over its competitors. Nike spends some of their annual revenues on advertising...
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...Public Relations Plan Ogden City Golf Courses Public Relations Plan Ogden City Golf Courses 1787 Constitution Way Ogden UT 84401 Phone Number: 801-629-0699 Mt. Ogden Golf Course | | 1300 Valley Drive Ogden UT 84401 Phone Number: 801-629-0694El Monte Golf Course | | For more info visit:www.ogdencity.com | 1787 Constitution Way Ogden UT 84401 Phone Number: 801-629-0699 Mt. Ogden Golf Course | | 1300 Valley Drive Ogden UT 84401 Phone Number: 801-629-0694El Monte Golf Course | | For more info visit:www.ogdencity.com | Table of Contents Executive Summary 2 Four-Star Rating History and Legends Lessons and Clinics Mission Statement Keys to Success Planning for the Future 3 Goals Target Audience Key Messages Strategies Executive Summary Mt Ogden Golf Course is a city owned public course perched high on the East Bench overlooking the city of Ogden and surrounding communities. The golf course is well known for its elevation changes and its fantastic course conditions. It is a very challenging but playable layout with views that are second to none. Mt Ogden Golf Course offers a wide variety of services that include catering, corporate events, men’s, women’s and couples golf leagues, annual tournaments, charity events, and golf teaching and instruction. El Monte Golf Course is a nine-hole layout located in the mouth of beautiful Ogden Canyon. Featuring gentle terrain changes, mature trees, and outstanding greens, this secluded...
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...Callaway Golf Company Write-up Team Number: B6 Team Members: Chenyu Gu 00231 83681 Xizi Shen 00247 52182 Hui Shi 00226 01971 Xing Zhang 00253 54085 Zhengbang Zhang 00244 61131 Section Time: MW 10:30--11:45 Part I. Overarching Problems CGC, Callaway Golf Company, has always enjoyed a great reputation as one world-leading manufacturer of high-end golf clubs and accessories. It is specialized in its innovation of technology and premium quality products. However, in 1998, the magic started to fade and sales dropped, CGC experienced a loss of 27 million. During that time, CGC had several significant issues: its poor relationship with retailers, the growing R & D cost, and the problematic marketing strategy. First, retail stores are critically important to sales turnover. With a high turnover, CGC management team realized the product knowledge of retailers didn’t meet its expectations. Besides that, margin was another conflict between CGC and its retailers because CGC came up with critical finance policies which highly restricted retailers’ flexibility on setting up prices. In addition, CGC usually sold their products at higher prices than other companies in the same industry. Thus, it means that CGC has to keep developing and introducing new products in order to hold their old customers. Therefore, CGC has to spend much more on R & D to differentiate its products from other competitors. Moreover, Richard Helmester, who is in charge of CGC’s R & D department, believes...
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...Assignment Questions - Golf Q 1. What are the defining characteristics of the golf equipment industry? What is the industry like? A 1. The defining characteristics of the golf equipment industry are product performance, innovative technology and name brand recognition. Golf companies essentially sell the same products so they must differentiate their products through technological advances. Fortunately for golf companies, the sport attracts mainly upper-class individuals so the companies can focus on quality with the assurance of high-end sales. This industry is very competitive due to the regulations placed upon it and the diminishing growth in the number of players in the recent years. The technology and research that these companies have done is so advanced that the USGA feels the need to place regulations upon the professional players to that the game is fair all around. The industry can be separated into two parts: golf and sporting goods. Golf companies usually gain brand recognition by hiring professional golfers to promote their products because this can be one of the most effective forms of advertising for a company. Companies are also focusing on creating new products for recreational players. For any company who wants to enter into this market would require significant amounts of investment. Q2. What is competition like in the golf equipment industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive...
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