Callaway Golf Company
I. Industry and Competitive Analysis
Callaway Golf Company is the leader in the golf equipment industry. Its founder, Ely Callaway, is an outstanding businessman, who made among others a winery a $14 million business where nobody would have even tried. His strategy always paid off, which is to provide best quality at a reasonable price (focused differentiation strategy). His last enterprise, the golf equipment business, portrays his outstanding managerial abilities and provides insight how to gain long-term competitive advantage.
1. Dominant economic characteristics of the industry environment
26 million US-Americans play golf. Their number is expected to grow 1 to 2 percent annually through 2010. According to my calculation, the number of players will increase in the US to 32.8 million1 in year 2011.
The typical golfer is aged 39, male and has an household income of $66,000 and plays golf twice a month. There were 5.7 million women and 2.1 million junior golfers aged between 12 and 17 in 1999. About 25% of all sportsmen are seniors. The scope of rivalry now is global, and the pace of innovation is quickening. Golf equipment has become a high-tech business and the market exhibits many of the characteristics of a high-velocity industry. This fact characterizes the barriers of entry as being high.
Golfing is also popular in developed countries, like in Europe, where more that two million people play golf, as well as in Asia, where 16 mill...
In the second year of business at Golf Challenge Corporation the company is struggling. The cost of their inventory is rising, and they are in grave danger of losing their bank loan (their prime source of financing) due to not meeting the required financial ratios agreed and set forth by the bank at the time the loan was given. The owner comes up with a solution, and figures that instead of using Last in-First out (LIFO) the company can use First in-First Out inventory cost system (FIFO) and meet their required financial ratios set forth by the bank. Ultimately, Golf Challenge Corporation should not submit documents to the bank using FIFO as opposed to their previous system LIFO in order to meet the bank requirements
Most amateur golfers believe that impact on the ball is the only key factor for hitting straighter and farther by swinging harder and faster, forgetting important facets in basics of the swing. There are multiple parts of the swing that involve biomechanics however; some key points are set-up, backswing, downswing, follow-through, and ground reaction force (GFR). To focus primarily only on one point of the swing to fix all problems is an obscure way to view the s...
Topgolf has doubled in size in the past two years alone and it’s expected to continue to grow both nationally and internationally. While this type of exponential and rapid growth might often seem as a risky strategy, Topgolf adopted rapid growth as its primary strategy to decrease competition. A Topgolf location requires more than $15 Million-dollar capital investment, making it very difficult for others to compete with Topgolf. There are very little chances for somebody to enter the golf entertainment industry as a direct competitor for Topgolf as it will require a large capital investment. The exponential growth that Topgolf is undergoing has given them more visibility and brand recognition, making it even harder for competitors to enter the market. Further, Topgolf’s current technology is protected by multiple patents for the next 15-20 years, making it even more difficult for competitors to enter the market. Honestly, Topgolf has no direct competitors, they are one of a type entertainment company with first class technology and innovative facilities. It might sound biased as I am currently working for Topgolf and absolutely love our company, but we offer a variety of products and services that are very difficult to imitate for others. While we compete for market share with other Entertainment companies like Main Event and Dave & Busters, as previously stated; we are very different in the sense that people feel more connected to the sports and the outdoors atmosphere feel that we offer. Topgolf’s core values: Fun, One Team, Excellence, Edgy Spirit, and Caring, revolved around the company’s goals and purpose of offering one of a kind experiences to the customers. Characteristics that allow Topgolf to be so successful in today’s culture, specially with the increasing generation of millennials who seek experiences more than material
Callaway Golf Company CEO Ron Drapeau told CBSMarketWatch, "We have become known as the company that brings innovation to the game for the average golfer. We're not focused on the elite professional players. It's been a very successful approach for us."
Celebrities such as Bill Gates, Kenny G., Celine Dion, and Alice Cooper uses the latest technology of Callaway Golf. Even the pros such as, Annika Sorenstam, Charles Howell III, and Phil Mickelson use Callaway Golf as well! It had eventually become one of the biggest names on the tour.
From its initial existence R&D and innovative products had been the lifeline of CGC. When Callaway bought into the company his first initiative was to develop original products. Innovation and superior performing products are important in golf because equipment is thought to have a significant impact on player performance. Moreover, innovation was important because CGC had to be the technological leader to sell its products at premium price and continue to exceed customer expectations. The industry was also characterized as being driven by new product development because manufacturers were trying to bet each other to the next "best club" so CGC had to manufacture products that were differentiated from its own existing products as well as those of its competitors.
Ever since I was a little kid, golf has been there. Golf has been something in my life that I can always fall back on and use to get some anger out of just to clear my head. No matter what it was, golf has been my rock. There is nothing like waking up at the crack of dawn to get out under the sun to play a game you love.
Technology and tradition affects everyone who plays golf, especially those who have a passion for the game. It’s no secret that the technologies of golf have altered the game, but are these alterations harming the game? The game is surely changing, introducing new technologies that have greater forgiveness, making it such that a weekend golfer can still obtain better scores. The most interesting aspect of the game is the evolution of the equipment itself, and how the United States Golf Association (USGA) has regulated to protect the integrity of the game.
In the years to come the players would slowly develop rules for the game. Golf began to take shape as the game played today in the 1800’s. “Golf in the first half of the century was still largely an informal game: there was almost no distinction between amateurs and professionals, and matches were set up primarily to bet on, bets made between players and spectators.” (Pearson, History of the Game of Golf) The elitist members of the clubs used these matches to help set up the rules used in today’s game. Peasants were only allowed to play under special circumstances, “The artisans may play on Sunday after raking the bunkers, but they’re not allowed at any time to walk in front of the clubhouse.” (Arscott, Golf: A Very Peculiar History) Other than this the course and golf club was only available to the elite citizens that would spend weekends and holidays playing golf and other
According to sports, golf become more popular in our society, many people are practice it and other play golf as a hobby. This research will be about golf and the negative affect that cause to society in past or even today. Golfing aims a lot of discrimination among women, it provided racism and the cost of this sport creates tension between social classes.
Overall, the Callaway Golf Company has shown much success in its industry lifeline. Only minor changes and adjustments could increase their success level in the future. Making too many adjustments to Callaway’s strategic vision could harm the successful industry.
A famous saying for many golfers is, “golf is the most enjoyable walk that can be had in two hours”; even though many people disagree with this and say it is, “the worst walk in two hours.” Still, over time many people have had the opportunity to play, learn, and enjoy the beauty of golf courses around the world. Many golfers know that the game of golf requires mental and physical aptitude with hours of practice in order to be proficient at the game. Furthermore, since golf is a sport played in the physical world, the entire game can be explained and actually improved by many principles in Physics. Understanding the principles of Physics in the swing of the golf club, golf ball, collision of the golf club with the golf ball, flight of the golf ball, and putting can help a player shave off points to make the “enjoyable walk” more tolerable.
Because of the evolution, golf looks much different than when it started. Because the sport of golf has changed, many people have been able to better their game and lower their handicap. Along with this, many more people have been introduced to the game which may be helping the sport be
The amount of contact in each sport is a prime example. In football, it is impossible to avoid physical contact, as it is a very aggressive sport with hard hits occurring every play. There is also a difference in the type of injuries within each sport. In football, injuries are much more severe. According to Head Case Company, football is the leading sport in concussions (“Sports Concussion Statistics”). It is common to have injuries in upper and lower limbs and in the torso and pelvis (“Sports Concussion Statistics”). There is also a difference in training between the two sports. Daily, our football practices consist of intense running drills, weight lifting, hitting and blocking drills, and many team building activities (BE3). When contrasting physical demands of football with golf, an obvious difference is that in golf there is no contact with opponents. There are also minor injuries that are common due to repetitive motions in the shoulder and elbow. Training for golf is much less strenuous, as it focuses more on muscle memory. Meticulous changes are often made to the swing and grip, and a sweat typically isn’t broken. Golf training heavily focuses on precision and
The difference in the two sports that the athletes played (basketball and golf) is quite a big one. In basketball, the object of the game is if you are on offense you want to put the ball into the round hoop while you are being guarded by opposing players and you have a boundary you have to stay in. If you are on defense, you want to prevent the offense from scoring into the hoop and if a shot is made, you throw the ball from out of bounds and then you are on offense. In golf, you are not on a team you are playing for your own