Callaway Golfing Company: Analysis

The drivers of the Callaway Golf Company is a world-class institution designed to provide a clear advantage, and also to please different golf products, including discovery technology the back up these products significantly superior customer service, and make a go back to shareholders the cost more than capital.

"CGC was led by Ely Callaway, a powerful motivator who described the business's culture. " It's a world famous golf make of golf club and product. CGC's sales experienced increased from 1988 to 1998. However, CGC's sales have decreased after 1999. What are the problems to stop that eagle? "In show up 1999, Callaway experienced these questions; the answers would guide him in refocusing CGC's retail channels, new-product development, and marketing strategies. " In my case study, I am going to concentrate on new-product development and identified my plan. Logistic include products carry, warehouse, and information control center. Callaway DRIVER is expensive price, but popular amateurs and professionals similarly. Through its website and golf sporting goods stores, sporting goods retailers, large shopping malls offering its products in over 100 countries and regions, . (Hoovers, Dec)

External Environment

CGC is in the money cow. It means high relative market share and low market expansion rate. That's because CGC is well known on the planet and their products in a plenty of shop stores and the clubs are famous. When Callaway buy the company, his first initiative is to build up original products. Product of golfing innovation and superior performance is vital, because the gear is considered to truly have a significant impact the performance of the players. In addition, innovation is vital too, because the CGC technology head in sales of its high grade products continue steadily to go over our customers' goals. However, his opponents more give attention to specific marketplace. The specialized quality of the merchandise, to enhance the CGC of high quality brands and keep customers to displace the brand. The impact of the external environment, customers will have special clubs and low solid. To pay the gross annual high. The CGC is found in Carlsbad, CA(CGC established website) which filled with sunshine. It really is usually a good place to travel and enjoy golf. People within might feel more relax than other claims. Also, in CA, the employees are enough to do the task.


For the exterior analysis, the company has a lot of opportunities. Many sports activities good manufacturers are broadening in the golf market. The maturity of the world's people, many old people play golfing, they have flexible income to buy golf equipment. Also, in New Britain status, Mid- Atlantic status and elements of south west, there a wide range of golfers and the quantity is increasing. (New York Times. Feb) In Physique 3,

CGC strengths are new-products development and well known in the world. The weaknesses are high prices and company relied more intensely on off-course retailers. The opportunities are new-products on existing marketplaces and marketing strategies. The risk is new-products sales cut down, low prices, cannot have value. I will discuss products transfer and warehouse in my own first step, information processing center will be a follow site.

The catastrophic storm impacts not only the golf circular in the surprise, but a substantial time frame. The external analysis will change, because face different economical and compare the situation in the global market.

There are several reasons that will treats the external analysis. The high rate of unemployment rate and the increase in the level of consumer debt. Turned down consumer self confidence and spending is increasing season by year. The main reason would be that the upsurge in the euro from the U. S. dollar, sales in euros acquired a negative impact. For interior analysis, small driver manufacturers, new technologies and new production methods to become the world's largest supplier of premium golf clubs and a dominant force in the industry. (ELY: NEW YORK)

The CGC sell more devices, the best price of more equipment than other company available of golf. This is a successful marketing decisions and strategies. , And provide high quality at a price sales. People will be ready to buy products and interest rates high.

Callaway consumers can trade allowances. Using their company golf club to the new Callaway golf clubs. This option is made for consumers to update their equipment.

However, the inner analysis is likewise have weaknesses. Callaway marketing is targeted on campaign, by professional players. The business tracks imitate, resulting in higher administrative costs and loss of income, this is very hard.

Global Manufactory and Warehouse

CGC need to set up manufactory in several countries for new-products' transporting and saving. In body 1,

I can clearly realize that CGC is the merchandise development' square, the very best right side. It means new-products for the existing markets. "To achieve that, CGC was required to constantly be on the industry leading of technology and continually go beyond customers' expectations" (CGC's circumstance site 505). CGC need to make new-products to continually exceed customers' goals. But that "CGC's biggest problem, therefore, was to have products differentiated not only from rivals' products but also from its own. If a product stayed in the pipeline too long, even if it was the best product, its sales would start declining. This decline occurred because the people who really sought the product would buy it within the first 2 yrs of its benefits" (CGC. 4). The main element expression is "pipeline". What is that? It's "a conduit of tube, especially one used for the conveyance of normal water, gas, or petroleum products"( http://www. thefreedictionary. com/pipeline). Yes, products move. CGC's wasted amount of time in new-products transport. For instant, main manufactory transports new-products to global market need a month. If CGC has global manufactory, they just need a week or least in the vehicles. That's the reason why manufactory set in foreign countries is vital stratagem. For instant, Apple Co. arranged his manufactory in China, cheap labor and costing, and than area director saved those products in their warehouse in location and reported main logistic supervisor just how many products they reserved. Marketing research, area administrator build profitable romantic relationships and create customer delight and reported main company about their area's demand. Plus they made every month's demand body for data duplicate. Manufactories understand how much product they need to make and warehouse will has enough space for new-product and old one. In addition to that, global warehouse good at fix that demand surpasses supply and offer surpasses demand problems. In CGC's case, manufactory made new-product and move to off-cause vendors have at least two problems. Is transport slowly, squandering time and declining value of "new". Another problem is dealer hasn't enough space for new-products. The second question CGC tried to use other way to fix. "Closeouts generally happened when existing equipment was discontinued to make room for new products or when CGC acquired too much inventory itself and wanted to get rid of it. During a new-product intro, for example, if the retailer experienced eight of the previous clubs left in inventory, CGC would supply the store with yet another new club free of charge, which helped bring down the common cost of the remaining inventory. Once a fresh product was launched, the retailer possessed the discretion to draw down the remaining inventory to a price at which it could sell" (CGC's case page 514). It's helpful to make space for new-products and good deal to market closeout. "In 1999, CGC performed its own closeout and sold $40 million of extra inventory of Great Big Bertha, Biggest Big Bertha, and Great Big Bertha irons to the marketplace at less price" (CGC's circumstance page 514). If indeed they have global warehouse, that would be saving source of information and decreasing resource surpass demand risk rate.

Information Processing Center

Information processing middle is the place that customers' require statement section. Their have information accumulate and transmit system to aid manufactory, warehouse, and logistic administrator or decision centre. In the event, CGC's customers are from True friends change to Butterflies.

Customers are no more loyalty and they just need the products to play golfing that's it. New-products are the way to constantly exceed customers' targets, that's a reason CGC need to know what customers needs and wishes. "Golf was a difficult game whose members' feelings ranged from disappointment to craving, with enthusiasm and fun merged in. Even though played in groups, golfers were very competitive with themselves. Golfers often blamed their equipment because of their poor play and thus often wished to update their night clubs" (site 506). Those are all different level's golfers' wants and needs, high-level golfers doesn't matter which kind of team they used. Average golf players want to try out golf and get the overall game in golf clubs, so they will keep the night clubs. "Although one's mental state and skill level had much to do with on-course achievement, in golfing, unlike nearly every other sport, the equipment also had a significant effect on a user's performance. Despite the fact that highly skilled golfers would play well no matter what type of club they used, average golfers were able to see noticeable advancements in their game when they used top quality equipment. Beginning golfers also benefited because a lot more forgiving clubs allowed those to make ball contact faster, aggravating them less so they might not quit the sport prematurely"(case webpage 506). Beginning golfers would more advice of salespeople. "For your starting golfer, buying new night clubs was a daunting task. Retail retailers offered an abundance of options that compelled beginners to rely on the advice of salespeople"(page 507). CGC need to have those require from information processing center and make marketing strategies, refocusing on dealer. For example, concentrate on salespeople training for new-products promotion. For a rookie, salespeople can promote new-products or some old-model with 30%-50% discount. Old-model with discount would easier for individuals needs. It could not cast a lot of money and good for closeout from warehouse. And CGC offers those salespeople who are available expert 10% of $500 devices sold encourage and 20% maximum. Those induces also be utilized to information processing center to gather information from customers' demand. And transfer this information to decision middle.


CGC has reduced pricing strategy. It offers a high-quality product high grade average players who would like the performance great things about the merchandise.

Callaway's strategy is prosperous, due to the fact of its ground breaking edge. In addition, the average golfer that their products provide performance advantages.

The country has added to the success of the industry. During this time the public curiosity about golf increased a whole lot. In addition, the marketplace is not over saturated, the Internet is not in retailing products a key point.

Establish a worldwide company and warehouse sales will add services and maintain profitability. And information control center pays to to study the marketplace and comments from customers and requirements. This can help from the external environment and threat decrease rate.


"Callaway Golf Company". New York Times, 8 Feb 2013. Web

http://subject areas. nytimes. com/matters/news/business/companies/callaway-golf-company/index. html

"Callaway Golf Company Company Information". Hoovers, 31 December 2012. Web

http://www. hoovers. com/company-information/cs/company-profile. Callaway_Golf_Company. fd42e2e0f3140749. html

"Callaway Golf Company (ELY: NEW YORK)". Bloomberg BusinessWeek, 2 Feb 2013. Web

http://investment. businessweek. com/research/companies/financials/financials. asp?ticker=ELY

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