Allied

In: English and Literature

Submitted By ariau69
Words 933
Pages 4
Callaway Golf Company — 2009
Case Analysis
Peter Peter
MGMT 637 Strategy Management
Professor. Garcia, Edmundo, M.I.B.A

Mitjans 1
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 had to manufacture products that were differentiated from its own existing products as well as those of its competitors.
The S2H2- introduced in 1988. This club redistributed weight to the striking area of the club head. The Big Bertha metal woods introduced in 1991. The innovative feature of Big Bertha was that it provided a larger "sweet spot". The oversized head made it easier to make contact with the ball so in turn made drivers more widely used by average golfers and revolutionized the way clubs were manufactured. The Great Big Bertha Titanium- launched in 1995. Titanium clubs increased the moment of inertia by moving material away from the club head center. Technologically superior products reinforced CGC's high quality brand and kept customers from switching brands.

Advertising
CGC targeted "average golfers" defined as golfers that played a minimum of 10 rounds per year and generally had handicaps above 18. Moreover they purchased new equipment roughly every two- three years and purchased premium equipment to boost…...

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