CALLAWAY GOLF COMPANY CASE STUDY
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Situation Audit
Established in 1982, Callaway golf Company (CGC) designs, develops, manufactures, and markets high quality, innovative golf clubs. Ely Callaway, founder of CGC, has built the company into the dominant player in the golf equipment business. His vision is to make truly more satisfying products for the average golfer, not the professionals, and make them pleasingly different from the competition. The company has a reputation as the best in the business.
Best know of the company's products are the Big Bertha line of clubs, and their subsequent updated version, which originally revolutionized the golf industry in 1991. By 1998, 69% of all professional golfers worldwide played with a CGC driver.
In 1998 there were 26 million golfers on 16,365 courses. The numbers are expected to increase by two million players and 300-400 new courses annually. There are three types of golfers: average golfer defined as playing ten rounds minimum per year, who buys new equipment every two to three years or more; avid golfer defined as playing 30 rounds minimum per year, reasons for buying new clubs ranged for the desire for the latest and greatest, to one's brother-in-law saying "you have to have it"; beginner golfer, played one to seven rounds per year. CGC clubs are sold at premium prices to both average and skilled golfers and are known for their high performance and shill forgiveness...