Callaway Golf Essay

This essay has a total of 538 words and 3 pages.

Callaway Golf

Callaway Golf CompanyI. 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
Continues for 2 more pages >>