Callaway Golf
Before talking about future strategic direction of Callaway Golf Company, I'd like to talk a little bit about the company's current business strategy. We know, almost every company's business strategy is basically to provide the best products among the competitors and to be the market leader as well as popular on that product. After retiring from the CEO, when Ely Calloway started leading the company again, he wanted to accomplish the strategy he was dreaming of, "directing the company's resources - talent, energy and money - in an ever increasing degree toward the creation, design, production, sale and service of new and better products." Ely also applied his philosophy to gain the success which was, ""true long-term success comes from innovative products" - which further made him to develop their product which included the Big Bertha Driver, Big Bertha irons, Big Bertha II and golf balls. After reading the case, I feel that that the company follows the porter's differentiation strategy and this strategy also matches with Ely's philosophy. Callaway Golf Company always differentiates goods and services to satisfy the needs of customers through a sustainable competitive advantage. This later allows this company to desensitize pric
Since the company has already accomplished the differentiation strategy, I'd recommend them to focus on porter's low cost strategy in future in addition to differentiation strategy. It is true that, Callaway's golf products are considered high-end as well as expensive too. So this brand isn't sold in discount stores. On the other hand, couple of statistics in the book shows that, the number of golf players have been increased dramatically recently. For example, in 1999, more than 26 million Americans played golf and are expected to increase 1 to 2 percent till 2010. This game has spread out to other areas of the world too in including Europe and Russia. That means, the competition in the market would be higher in future, which will force the companies to decrease the tools cost. Although, this company is using the high technology today but that does not mean that other companies or Callaway's competitors won't use technology in future. Now a day many golf players are willing to purchase technologically advanced golf equipment to improve their scores and other companies will take the advantage of that. In today's markets where rivals compete mainly on price, low cost relative to competitors is the only competitive advantage that matters. I think, if the company would focus on low cost strategies on golf tools remaining the quality unchanged, they sure
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Approximate Word count = 916
Approximate Pages = 4 (250 words per page double spaced)
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