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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. ... 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. ... Beginners view the golf retail experience as fun because it is a whole new consumer world for them.
The highly competitive golf equipment industry is marked by well-established and well-financed companies with popular brand names, as well as new companies with trendy products. ...
The company scored a major product success story in the 1990s with their signature Big Bertha titanium driver, a technological innovation which transformed the game through its distance-enhancing features. Research and development is a critical focus for the company, R&D spending went form $6 million n 1994 o $37 million in 1998. ...
The company’s primary golf club offerings included the metal wood, irons, and putter categories, which covered six major product lines. ... Retail surveys consistently place CGC number one in customer services, however, the company is always last rated in margins. ... Within the United States, the company sells to on-course and off-course golf retailers who sell professional quality equipment and no one customer accounts for more than 5% of revenues in 1998. ...
CGC use television, golf magazines, trade publications, and word-of-mouth as its primary forms of advertising. The company also endorsed professional golfers in all five major tours (PGA, LPGA, Senior PGA, European PGA, and Nike) as a vehicle to promote its products. ...
Problem/Decision Statement
During the late eighties and early nineties despite not having any major competition,
Callaway introduced several significant product innovations. ... From 1988 to 1997, Callaway sales had increased steadily. ...
What strategy should Ely Callaway, CGC’s CEO, follow in order to maintain the company as an industry leader and achieve steady growth in sales again?
Approximate Word count = 1624
Approximate Pages = 6.5
(250 words per page double spaced)
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