Introduction
• Industry’s popularity has been reborn with players, such as
Tiger Woods, David Duval, and Phil Mickelson.
• Second quarter of 2002 showed an increasing net income
of 37% as compared to 11% for the entire year of 2001.
• Callaway spends about $25M annually on R & D for the
development of new clubs, balls, and drivers.
• Callaway’s market niche exists in golf drivers for novice
golfers.
• The implementation of our group’s IT infrastructure
upgrade could increase annual revenues by as much as
15%.
Industry Analysis
Competitors
Traditional
1. Ping
2. Adams
3. Cleveland
Industry Analysis
Company Analysis
Strategy
Summary
Industry Analysis
Competitors
Subsidiaries
1. Titleist (Fortune Brands)
2. TaylorMade (Adidas)
3. Nike Golf (NIKE)
Industry Analysis
Company Analysis
Strategy
Summary
Industry Analysis
Strengths
1.
2.
3.
4.
5.
6.
Industry Analysis
Established Position
Affluent Customer Base
Customer Longevity
Global Market
Strong Web Presence
Inclined Towards Innovation (R&D)
Company Analysis
Strategy
Summary
Industry Analysis
Weaknesses
1. Dependence on Tiger
2. Possible Fad Popularity
3. Limited Use of Web Presence
Industry Analysis
Company Analysis
Strategy
Summary
Industry Analysis
Opportunities
1. Generate New Interest in Sport
(Increased Collegiate Presence)
2. Increase Overall Affordability
Industry Analysis
Company Analysis
Strategy
Summary
Industry Analysis
Threats
1. Increased Competition from
Wholly-Owned Subsidiaries
2. Interference of Rule-Making Bodies (ERC II)
3. Clones
4. Tiger Injury
5. Other Sports
Industry Analysis
Company Analysis
Strategy
Summary
• Strengths
Company Analysis
– Prestigious Brand Name
• Low Depreciation
Manufacturer
Club
Depreciation
Callaway
Hawkeye VFT
55.62%
Taylor Made
360
57.90%
Ping
TiSI
62.19%
Titleist
975D
67.05%
•
• Technical Innovations
– Carbon fiber driver head
– Polymer putter inserts
Company Analysis
• Weaknesses
– Golf balls
• Lack of an established 3-piece ball
• Lack of 2-piece balls
– High price
• Lack of mid-range irons
Callaway
Taylor
Irons
$699.99
$449.99
Drivers
$269.99
$299.99
Company Analysis
• Opportunities
–
–
–
–
Strategic Alliance
Mid-Priced Ball Market
Capitalize on merchandising
Tour representation
• Threats
– Highly capitalized large companies
Strategic recommendations
•Do NOT change the business model
•Enhance current IT infrastructure
•Integrate Online Purchasing
Industry Analysis
Company Analysis
Strategy
Summary
Strategic recommendations
Enhancing Current IT Infrastructure
Subscribe Retail Customers
1. Video Submission for Analysis and R&D
(Digital Camera Kiosk – M-peg submission)
(Optical Sensor Relay)
2. Multi-Location Access to Individual Account
(Web Protocol)
3. Purchasing Trends
4. Retailer Accountability
Industry Analysis
Company Analysis
Strategy
Summary
Strategic recommendations
Integrating Online Purchasing
Provide Centralized Storefront for Dispersed
Retailers / DCs
1. Increase Callaway exposure
2. Provide Unique Service
3. Provide Additional Business for
Retailers / DCs
Industry Analysis
Company Analysis
Strategy
Summary
How?
Supplier
Customer
Retailer
Distribution Center
Industry Analysis
Company Analysis
Strategy
Summary
How?
Supplier
Customer
Retailer
Distribution Center
Industry Analysis
Company Analysis
Strategy
Summary
How?
Supplier
Customer
Retailer
Distribution Center
Industry Analysis
Company Analysis
Strategy
Summary
Summary