Case analysis of Callaway Golf Company

The key issues concerning Calla expressive style Golf Company be:

*Relationship with its retail partners

*New product development

*Marketing strategy

Problem:

Callaway has experienced its first breathing out of $ 27 million after 10 years of growth. Competitors had finally caught up to CGCS 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.

Callaways strategic winner in 1988 to 1997 is highly ascribe to its R & D facilities. Their rise toward innovation and engineering science 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 handy R & D. This was expensive which is why many companies pick not to compete in the area of differentiation. Over a fin year period it spent $36.3 million on R & D alone.

Revolutionary unanswered question approach produced true market drivers in S2H2, Big Bertha, and titanium. Competitors could not stumble up to the technology, enabling premium pricing and superior strike off image.

They infrastood their customer well. They had the ability to identify and solve potential needs (e.g., a driver with accuracy) created a pull withdraw pattern. Pull demand made collaboration of retailers easy and tear down enhanced promotion through voluntary celebrity usage. This took intention expertise, in addition to understanding the addictive/obsessive/ emotional relationship golfers have with their equipment. Selection of the average golfer as tar make customers tapped into the market most influenced by and likely to talk over golf technology.



This is also one of the fastest growing segment, 27 %( 5.4m) of 20m US golfers in 1986, 32% (8.4m) of 26m US golfers in 1998.

Thus the factors that contributed to its success were as follows:

*Performance and quality of its club

*Product innovation...

Good use of porters five forces and good recommandations to the Callaway Golf Company. It helped me doing my case study. However, the problem statement i find it hard to understand coz you mentioned company strength under probelms heading.


Overall, it is a well done piece of work.

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