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Callaway Golf Clubs

In: Business and Management

Submitted By rashadm
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Callaway Golf Clubs
Term Paper Assignment
Webster University
Marketing 5000-02
Fall I 2010

Rashad A. Myers

Executive Summary
Callaway is a premium golf equipment company which focuses on increasing the overall experience of playing the game for those that use its products. The company will increase market share and profits by focusing on specific target markets over the next 12 months.

Environmental Analysis
Socio-Culturally, Callaway is affected by the fact that the majority of its customers are Caucasian and male. Further, this demographic is largely made up of male baby boomers, and this segment is aging rapidly, with many giving up the game due to health reasons. Also, children are not taking up the game with the numbers that they used to. Instead, they opt for video games and other sports. Politically, Callaway is not affected by legislation. Callaway is certainly impacted by what is going on economically. Golf is a relatively expensive sport to play with any regularity, when you take into consideration the equipment costs and green fees. One of the first activities that are limited is recreational spending in a down economy. The company will suffer if people’s discretionary spending is limited for extended periods of time. Callaway is affected by Legal and Regulatory forces because its governing body, the United States Golf Association (USGA) can make changes to equipment any time it wants to. Callaway incorporates technology heavily in their club and ball design. This is one of Callaway’s major focuses. There are several competitors in the golf club industry. The most common competitors are Nike, TaylorMade, Ping, Titleist, Cobra, Cleveland, Srixon, and Mizuno. These companies, among others, are competing for the business of a slowly shrinking group.

Strengths
Callaway Golf prides itself on investing in innovation of...

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