Callaway Golf Case Study

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1. Callaway 's strategy from 1988-1997 with respect to:

A. Research and Development 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
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This was mostly like due to the fact that this outlet appealed mostly to experienced or avid golfers which were brand conscience, but did not depend on their equipment for performance. Also on-course salespeople had less time to sell products due to the other duties they had to perform. Callaway Golf Sales Company, a subsidiary of CGC, sold products to customers at wholesale. Products were sold through outside sales, in-house telemarketing, and customer representatives. Outside salespeople performed many duties including physical inventory counts, running demo days, and training salespeople. CGC used foreign subsidiaries and international golf club distributors to sale its products in more than 50 countries.

D. Price CGC had a premium pricing strategy. It was providing a high-quality product at premium price to the average golfer who was looking for a product to five them an edge in performance. CGC also had consistent pricing and offered all retailers the same pricing structure regardless of the volume they acquired. What is more, CGC rarely allowed retailers to advertise prices on its products. Foreign subsidiaries and international golf club distributors did receive products at a reduced export-pricing discount to ease the effect of international distribution, advertising, and selling expenses.

2. Callaway 's strategy was successful mainly because its innovative edge. During

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