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
TaylorMade is viewed as the #1 innovator of metalwoods by consumers and professionals. TaylorMade has had to endure new competitors entering the market, such as Nike, but have continued to dominate the market due to its advanced technology and design that its metalwoods are known for. TaylorMade has gained a 30% market share of metalwoods and a large lead over its competitors in the USA (adidas Group, 2013). The brands prime focus moving into the future is to gain more of a market share outside of the USA and continue to be the most used metalwoods on the PGA Tour. Being the most used metalwood brand on the tour is not a testament to just its popularity, but
There are so many companies that boast that they have the best irons and longest driver in golf, but Titleist has associated themselves as the elite golf club manufacturer. Known mostly for golf balls, Titleist has come a long way with their exceptional feel and great looks to improve the games of every golfer. Titleist ran a print advertisement in the April 2010 Golf Digest magazine displaying advanced performance in their clubs. The tagline reads, “Improvements You Can Feel” (16-17). The Titleist AP1 & AP2 irons are the products being sold in this ad. When people think of golf, Nike or Callaway is normally what comes to mind, but Titleist is known for their performance in the clutch. The
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.
Golf ball manufacturers would be looking to achieve several key strategic goals, such as increased sales, increased market share and / or increased profitability, to adopt and implement PI’s technology. Accordingly, manufacturers are mainly concerned with the cost and implications on manufacturing, competitor reactions (and customer perception), the forecast growth in the new balls market, the share they could capture and the financial details of agreement.
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.
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.
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.
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
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.
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 decision for an individual manufacturer to adopt PI’s technology will be determined by the potential increase in sales as golfers replace performance degraded balls with their brand. It is reasonable to assume that individual manufacturers are hesitant to pioneer this technology because there is no assurance that a performance degraded golf ball would be replaced with their own. The data indicate that golfers are comfortable using used balls, or value brands. By removing approximately 50% of the used balls from circulation, numerous golfers may utilize the lower cost alternatives to fulfill their required quantities.
If so, then you will easily find this type of information on the internet. Just do some online research and find the answer to yoir question. Go on golf forums and see what experienced golfers say. See exactly what most of them use, and what products are the most recommended. Keep in mind that a manufacturer that has been on the market for a very long period of time, definitely makes quality clubs, which no matter how much they cost, they ate withoit a doubt quality.
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
Unfortunately, the golf industry is out of balance with the number of courses (supply) outweighing the number of golfers looking to play a round of golf (demand). Course owners struggle to attract rounds. In order to stay competitive in today’s market, you need to have differentiators that set you apart from your competitors. This module enhances the golfer’s experience at those courses that have it and they have a decided advantage over the competition with all other things being equal. If you are looking to attract more rounds, use the Golfer Experience Module to make the round more enjoyable resulting in more rounds and revenue.
Wilson creates some of the best sports goods (Volleyballs, Tennis racquets, and Baseballs). They are one of the best manufactures in the world, even though they were a subsidiary company of the Finnish group Amer Sports until 1989.