NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
... ops or golf specialty stores like Nevada Bobs. This was done so that each golfer could have his or her clubs custom fit to their body and swing characteristics. What are the competitive weapons that rivals are using to try and outmaneuver one another in the market place?
As previously mentioned the scramble between rivals to gain the endorsement of professional golfers. Also each is competing for the premium space in golf specialty stores and course pro-shop display areas. The most important in my mind are the extensive research and development efforts of this company's. I think that any one that has played golf can easily identify with the advantage that a better-weighted and more forgiving club will bring. The game in its self is expensive just to walk on to the course, but people are willing to pay because of the feeling that they get from that one perfect shot in a five-hour round of golf. This being said, once that they have played a few rounds and find out how much better these other clubs truly are, then they are often ready to line up and get the best. 2.
What key factors determine the success of company's competing in the golf equipment industry? The drivers or key factors that cause the golf club manufacturing industry to change and remain competitive are product innovation, technological change, marketing innovation and the increasing globalization of the industry. Product innovations are evident in the development of four major innovations. These developments "made it easier for golfers to hit better shots and improve their scores; (1) perimeter weighting in the late 1960 s; (2) metal woods in the early 1980 s, (3) graphite shafts in the late 1980 s and (4) oversized club heads in the 1990 s." Technological change includes such things as Karsten Soldier's introduction and development of the investment casting manufacturing process allowing club heads to be made with molds instead of forging them from steel as in previous years. Also each company found methods of using better and more durable raw materials in the making of club heads and shafts that were all designed with the notion of allowing the golfer to make better contact on a more consistent basis with the ball on a higher percentage of swings. Marketing innovation is evident through out the industry in club design as mentioned previously but also in developing equipment and training course professionals all with the primary goal of custom fitting the set of clubs to each individual golfer.
These efforts are extremely important because it gives the buyer a feeling that the company thinks that they are important and hence leaves them more satisfied with their purchase and likely to recommend their choices to other golfers. Lastly the increasing globalization of the industry has a major effect on how competitors chose to compete in the industry. The game of golf is very different in the rest of the world when compared to most other sports that are popular in the U. S. First off the game came to us from the U. K.
and has been very popular in other countries for years before ever being played on American soil. So this presents an enormous market opportunity to all of the sellers of golf equipment. The PGA has several players from many different countries that are as big heroes to their homelands as many see Tiger Woods in ours. This being said, each company must sign players from around the world to endorse its products and develop viable competitive strategies in each of these markets or make a conscious decision to remain clear of them. 3. What is Callaway Golf's strategy to compete in the golf equipment industry? Callaway's strategy is focused differentiation that is geared towards niche members (avid golfers) that perceive their products as being superior to rival brands.
Raising the performance level of the golf clubs that the customer purchases from Calloway is doing this. An examples is the Big Bertha driver, "the most innovative club in the industry when it was introduced in 1991. "Its key features were a bigger club head, a bigger sweet spot and a longer shaft, all of which helped to improve the consistency with which a golfer could drive the ball off the tee. " Callaway also engaged in backward vertical integration strategies that would further secure its differentiation efforts. This was done by joint ventures with the providers of the raw materials necessary for the manufacturing of the company's titanium head clubs. Calloway has also undertaken an intense research and development approach and invested heavily in the facilities and manpower to make it productive. This has produced better club designs and other tools needed to fully evaluate a golfer's swing.
Leaving customers with the impression that Calloway meets their needs more completely as compared to rival companies. Has the company's competitive strategy yielded a sustainable competitive advantage and if so, has that advantage translated into a superior financial and market and market performance? Calloway has definitely gained a competitive advantage and it's evident by their ability to prove to customers the worth of their product and command higher prices than their competitors for a similar product. An example of this is the Great Big Bertha introduced at a price of $ 500, "a heretofore unheard of price for a single golf club." This is a good example of the text book's definition of a differentiation's basis for competitive advantage by offering a set of capabilities for delivering customer value that are unmatched by rivals.
This strategy has and continues to pay off for Calloway because they are the now the number one seller in most of the top end golf club categories. They have also enjoyed a steady and upward trend in sales, earnings per share of their stocks and an ever-increasing percentage of the market. 4. What recommendations would you make to Donald Dye to improve the company's competitive position in the industry and its financial and market performance? First I would recommend expanding the companies marketing efforts abroad. I believe that the global market place presents an enormous opportunity for Callaway and all of their competitors as well. Golf is extremely popular in most European countries and it is gaining momentum in several Asian countries as well.
Although some countries have access to top end golf equipment, I think that there is a huge market for these types of clubs that is yet untouched. Secondly I would continue to acquire other companies that are in the golf equipment business and not necessarily producing clubs. I would look for a golf shoe and glove manufacturer, I think that this would be a great method of using Callaway's extensive name recognition in gaining a new source of income. It appears as if whatever Mr. , Dye decided was not to Ely Callaway likes because I notice that he is no longer with the company. Bibliography:
Free research essays on topics related to: raw materials, key factors, competitive advantage, research and development, golf club
Research essay sample on Research And Development Competitive Advantage
