2. Overview Background/history Issues General environment analysis
Industry environment analysis
Knowledge/perspectives
Recommended actions
Summary/conclusion

3. Calloway Golf Founded in 1982 by Callaway Golf Company
Originally Callaway Hickory Stick USA
Revolutionized the Industry, “Big Bertha”
Odyssey, FrogTrader, Top-Flite
More than 110 countries worldwide

4. Issues
Gaining market share in golf clubs and balls when remaining market share is already limited.
Lack of customization of product lines on the global stage.
How can Calloway achieve and sustain growth in spite of global economic strife?

5. General Environment Analysis
Decreased demand for golf clubs due to global economic recessions
Golf is a leisure sport, not a necessity (therefore expendable)
Golf is not a growing industry

6. Industry Environment Analysis
*Derived from Porter’s Five forces model

7. Strengths
Callaway Golf Company products are designed and built on an 8 building campus in California, which is also home to the majority of their employees.
Advanced technology allowed Callaway to go from a small golf club manufacturer to the largest producer of premium golf clubs and a dominant force in the industry.
Callaway designs, manufactures and produces small accessories as well.
Value added brand name
Adjustability in the employment system

8. Weaknesses
Callaway Golf Company experienced an operating loss 25.6 million in the golf ball business due to product expansion and competitive pricing efforts.
No switching cost for customers
Operating and sales loses due to counterfeit products being produced in Asia
Callaway marketing is limited and focused on promotion through professional players
Consumers geared more towards the style and cosmetics more than technology

9. IFE

10. Opportunities
Penetration of Asian market in anticipation of fast developing economy with rapidly expanding middle class.
Increase in the number of golf rounds played in New England state and Mid-Atlantic throughout Europe
Utilizing Top Flite to offer a second tier of clubs and accessories
Further diversification of product line (watches, tees, cigars)
Larger sponsorship in PGA tours

11. Threats Golf industry declining entirely
Massive amounts of imitation and counterfeit products
Low margin courses shutting down due to economy
Competitors offering more specialized products to consumers
Less golf rounds being played in U.S

12. EFE

13. Recommended Actions
Development of discount product line of golf clubs as brand extension of Calloway (i.e. Golf Pro, powered by Calloway)
Wider range of products other than only clubs and balls
Customized product lines specific to markets

14. Questions?