CallawayGolf
Callaway Golf Company
8-page SWOT
MBA 801 – Strategic Management
April 24, 2003
CALLAWAY GOLF COMPANY
Business Overview: Callaway Golf Company designs, manufacturers and sells premium, innovative golf clubs and golf balls. They position the clubs to be demonstrably superior to, and pleasingly different from, their competitors’ products.1 Callaway is an industry leader in golf equipment. In 1999 they manufactured and sold 5.6 million premium golf clubs, for total revenue of over $714M and a net income of $55M. Callaway became a leader in the golf equipment industry by developing technologically advanced golf clubs that compensated for the poor swing characteristics of most amateur golfers.2 Callaway transformed the golf industry in 1990 by introducing an oversized clubhead called the Big Bertha that was more forgiving of golfers’ swing imperfections. Their products are sold in the United States and throughout 107 countries around the world. Callaway’s products are designed for both amateur and professional golfers. Golfers generally purchase the company’s products on the basis of performance and appearance.3
Ely Callaway entered the golf club industry in 1982 by purchasing Hickory Stick USA, which was a manufacturer of old-fashioned hickory-shafted clubs. The first major product from Callaway Golf was introduced in 1990, which was their Big Bertha driver. By 1992 the Big Bertha drivers were number one on Senior PGA, LPGA and Hogan Tours. In February 1992 Callaway Golf Company became a public company. The funds from this stock offering were used to open the Richard C. Helmstetter Test Center, which expanded the company’s capability to research golf club performance and design. Callaway continued to invent and produce new improved golf clubs through out the 90s. In 1998 due to the weakening foreign markets and the high investments into diversification activities, Callaway’s financial and market position suffered, but began
8-page SWOT
MBA 801 – Strategic Management
April 24, 2003
CALLAWAY GOLF COMPANY
Business Overview: Callaway Golf Company designs, manufacturers and sells premium, innovative golf clubs and golf balls. They position the clubs to be demonstrably superior to, and pleasingly different from, their competitors’ products.1 Callaway is an industry leader in golf equipment. In 1999 they manufactured and sold 5.6 million premium golf clubs, for total revenue of over $714M and a net income of $55M. Callaway became a leader in the golf equipment industry by developing technologically advanced golf clubs that compensated for the poor swing characteristics of most amateur golfers.2 Callaway transformed the golf industry in 1990 by introducing an oversized clubhead called the Big Bertha that was more forgiving of golfers’ swing imperfections. Their products are sold in the United States and throughout 107 countries around the world. Callaway’s products are designed for both amateur and professional golfers. Golfers generally purchase the company’s products on the basis of performance and appearance.3
Ely Callaway entered the golf club industry in 1982 by purchasing Hickory Stick USA, which was a manufacturer of old-fashioned hickory-shafted clubs. The first major product from Callaway Golf was introduced in 1990, which was their Big Bertha driver. By 1992 the Big Bertha drivers were number one on Senior PGA, LPGA and Hogan Tours. In February 1992 Callaway Golf Company became a public company. The funds from this stock offering were used to open the Richard C. Helmstetter Test Center, which expanded the company’s capability to research golf club performance and design. Callaway continued to invent and produce new improved golf clubs through out the 90s. In 1998 due to the weakening foreign markets and the high investments into diversification activities, Callaway’s financial and market position suffered, but began