Callaway Golf Case Essay Research Paper Contents1

Callaway Golf Case Essay, Research Paper

Contents

1 Introduction to the case 2

2 Analysis of the environment 3

2.1 Listing of environmental factors influencing the company (PEST Analysis) 3

2.1.1 Political and legal factors 4

2.1.2 Economic factors 4

2.1.3 Socio-cultural factors 5

2.1.4 Technological factors 7

2.2 The international golf equipment market Introduction 8

2.3 Analysis of the competitive forces (Five-Forces-Analysis) 10

2.4 Anal. of the Drivers Of Change in the industry and their impacts 12

3 The companies and their strategy 15

3.1 Which companies are in the strongest/weakest competitive Position 15

3.2 Recommendation of strategic moves 17

3.3 Key factors For competitive success in the Industry 18

3.4 The prospects for above average profitability in the golf-equipment industry 20

4 Callaway Golf Company Resources and Competitive Capabilities 23

4.1 The present strategy 23

4.2 The company s strengths and weaknesses 24

4.3 External opportunities and threats 25

4.4 The company s prices and costs 26

4.4.1 Analysis of the companies competitive position 26

4.4.2 Analysis of Stakeholder Expectations 28

5 SWOT Analysis 31

6 Sources of reference 32

1 Introduction to the case

The task is to execute a strategic analysis for Callaway Golf Company and to determine the actual position of the firm and its environments. The amalysis will result in verifying if there is a change of the present strategy necessary to continue Callaway s success story.

2 Analysis of the company s environment

2.1. LISTING OF ENVIRONMENTAL FACTORS INFLUENCING THE COMPANY (PEST)

2.1.1 POLITICAL AND LEGAL FACTORS

Generally one can mention that the activities of governments worldwide during the last decade tended to globalize the industry. The trade policies of core markets like the European Union, most of Asia and the United States encouraged free markets between nations. However, country specific laws are still reality, and enterprises are still affected by them. The actual tendency is clearly orientated to furthermore encourage global competition, a fact, companies of all kinds have to respect. However, in some countries we still have Foreign trade regulations aiming at protecting the own economy. As well all the major markets are stable democracies which act with a great political and government stability, therefore this does encourage spends for leisure activities.

Monopoly restrictions may get more important for the golf equipment sector, as we already have a high grade of concentration.

As Callaway Golf is an American enterprise it deals under American law protection. The United States possess a strong developed patent right combined with a system of lawyers fees based on commission, which in the past affected the company in a way that as a consequence of settled lawsuits against competitors, mostly with knockoff imitations, it was awarded more than USD 5 million in judgments and fines for imitative infringement.

Finally it should be mentionen that theincreasing popularity of environmental protection legislation may affect future production costs in general.

2.1.2 ECONOMIC FACTORS

The company is (because of social cultural factors and its policy) mainly affected by the economical development in three key markets, which are the United States, Japan and Europe. In some of those markets the company actually noted a decrease of the total dollar volume; if the trend holds on it could affect production costs because of over-capacities.

As it would be necessary to perform an analysis of the economical influences not only in the home country, but as well in every target market, I will skip this point and solely give some basic information about the development of the world economy.

In the year 2000 we find world economy once again in a better shape. With a general increase of world industry output of 2.9 % that is about 0.3 % higher than in 1999 the world economy finally seem to have recovered from the negative influence of the Asian crisis in 1997.

2.1.3 SOCIO CULTURAL FACTORS

The socio cultural factors are very much influencing the success of an enterprise like Callaway which dedicates itself to the development and production of goods useful for just one determined target group: The golfer

In 1995 there were 25 million of americans (representing a nine percent share of the total population) playing golf, which was by far the most important target market of Callaway.. The second important target market was Asia were about 16.5 million people were playing golf. Europe with just 2.3 million is on third place. As a tendency we can say that golf is practices in the developed countries, the developing ones are not very significant for the golf industry. The typical golfer had a relatively large annual household income of USD 57.000 to USD 59.000. A level of income of which in developing countries just a small percentage of the population dispose. However this might be a problem: The target market consists of high income persons and in spite of the notable decrease of the average green fee to the 1998 GBP 17.50 during the last

Внимание, отключите Adblock

Вы посетили наш сайт со включенным блокировщиком рекламы!
Ссылка для скачивания станет доступной сразу после отключения Adblock!

Скачать