Case Study Of Puma Company

We are aiming at understanding how Recreational Equipment INC. (REI) achieved a competitive advantage through their strategies and how they implemented those strategies. REI differs from the other sporting goods stores in their quality product selection, complements, and excellent brand name promotion. These qualities enable REI to sell merchandise at premium price levels (Morse, 2003).

Looking at the market we can see that Golf Companies have suffered after the 2008 recession. However, in 2012 golf ball market was $483 million in retail sales from 17.6 million units which was 4.1% growth from 2011, showing that there has been improvement in the market performance from companies that had lower prices for golf equipment as people were willing to spend on their product. However Altius could not regain

Callaway's main strategy is differentiation based on technologically advanced products which (supposedly) have performance advantages sufficient to justify the premium price. Callaway's goal is to maintain its #1 position as the world's largest golf merchandise company. To maintain its status and distance itself even further from the competition, Callaway will need to utilize its size and unique technological advances to continue to produce great products that maintain customer loyalty while attracting a broader customer base. Callaway now can also use the products of its recent acquisition of Spalding to further reach a wider customer base. As it continues to pursue a better research and development program this

Their target market is an average golfer, but they should also target good and experienced players, who are the

Imagine the sun bursting through the trees for the first time of the new day, the smell of freshly cut grass still potent to your nose as you tee the ball up for a round of golf in the cool mist of a spring morning. "That is what brings you back every time, the smell of the air, the coolness of the whether and the beautiful surroundings that make every shot enjoyable." (Suess, PI) This is the game of golf in its finest and most exquisite time to many people and many people it has touched in its long history. Golf is a lifestyle and not just games to people that are avid in playing. The game of golf has a history that is rich in technological advances and personal accomplishments, which through time has shown to shape

Old models take a large percentage of companys inventory what creates unnecessary costs. CGC should move these models to new markets that recently adopted Golf as a sport.

The older generation, who has played a large role in the game of golf, has begun to surpass the age of playing 18 holes on a full length course. Baby boomers are taking a step back and are seeking other opportunities to keep them active. Various clubs across the country are adapting to this by providing recreational substitutes to those who are reducing their golf activity to greatly boost the chances of having all of them remain active, dues paying members.

To me, a very important question is, “How traditional can we keep the game of golf?” The game is evolving at every aspect. They are evolving the golf ball and making it better by making it fly longer in the air and landing softer on the greens. Along with the ball, the clubs are being made better and better making the ball go farther sometimes by even 50 yards. Each year, the irons are being made with better grooves which make the ball come off the club better and farther. While golf equipment is changing, the rules of golf are not. The rules of golf have been here since it’s existence. Another question that concerns me is, “Why can the equipment change in golf, but not the rules?”

company emphasis was on its ability to provide top quality training and service to experienced serious golfers. It

26 million US-Americans play golf. Their number is expected to grow 1 to 2 percent annually through 2010.

Even though golf had grown to be a sizable part of the U.S. economy, the golf equipment industry was faced with serious troubles in 2008. The convergence of a variety of serious hazards to the industry had caused the retail value of the golf equipment industry to decline from approximately $4 billion in 2000 to about $3 billion in 2003. Golf equipment sales had rebounded to an estimated $3.8 billion in 2007, but many threats to the industry continued to exist. The number of golfers in the United States had declined from 27.5 million in 1998 to 22.7 million in 2007. The number of rounds of golf played in the United States

To me, a very important question is, “How traditional can we keep the game of golf?” The game is evolving at every aspect. They are evolving the golf ball and making it better by making it fly longer in the air and landing softer on the greens. Along with the ball, the clubs are being made better and better making the ball go farther sometimes by even 50 yards. Each year, the irons are being made with better grooves which make the ball come off the club better and farther. While golf equipment is changing, the rules of golf are not. The rules of golf have been here since it’s existence. Another question that concerns me is, “Why can the equipment change in golf, but not the rules?” Throughout the years golf has changed in the aspect of equipment but not the rules.

New golfers increased from 1.5 million to 3 million between 1988 and 1998, but most of them quit due to increased cost of playing which went up by nearly 50%, unavailability of courses and time involved in playing. The global premium equipment market declined post 1998 due to various reasons like decreased demand, Asian economic turmoil and saturation of product in the market place. To CGC’s benefit the competition on golf equipment

Callaway Golf Company is considered a leader of the golf equipment industry through its development of technologically advanced golf clubs that compensated for the most amateur players with poor swings and helping them achieve a better golf game with the introduction of Big Bertha in 1990 and launched Callaway Golf Company forward at great speed into notoriety of the golfing community (Gamble, 2000). This analysis will thoroughly dive into the many parts of the case of the Callaway Golf Company.

Ely Callaway, Callaway Golf Company 's (CGC) 80-year:old founder, chairman, and chief executive officer, sat in the conference room one sunny day in fall 1999 contemplating his company 's remarkable story. He wondered how that story might continue in light of some recent internal and external challenges. In the span of a decade, Callaway had built CGC into the dominant player in the golf equipment business, despite charging premium prices. CGC sales had increased steadily from $5 million in 1988 to over $800 million by 1997 (see Exhibit 1 for income statements). He accomplished this with the clarity of his vision: "If we make a truly more satisfying product for the average