Callaway Golf Company Case Study Analysis
Callaway Golf Company (CGC) excelled in designing, development, manufacture and marketing of Golf clubs and accessories. Established in 1982, the publicly traded company recorded a steady growth in sales from $5million in 1988 to $800 million in 1997. This was possible due to clarity in vision of its CEO Ely Callaway, which was aimed at making a satisfying product which was uncommon and enjoyable for the average player rather than professionals. The revolutionary clubs were sold to professional as well as average players at premium prices driven by the high performance delivered by them.
The company’s CEO and founder Ely Callaway was a golf champion himself during his twenties and was a powerful motivator defining the company’s culture with his charm, optimism, energy and inspiration. The company came into existence after the takeover of Hickory Stick USA, Inc. by Callaway with an investment of $435,000 and idea of mounting the product mix. Callaway prioritized development of original products and invested heavily on new product development thereby basing his strategy on technology and product innovation. The inclusion of Richard Helmstetter in 1986 as a chief of new products and Vice president of the company brought about a revolution making CGC an innovation powerhouse from its earlier existence as just a niche producer.
With the introduction of a unique clubhead model S2H2 in 1988, the company began a revolution in golf club design concepts that assisted better performance with higher efficiency. Helmstetter promoted a unique approach to research and development (R&D) by allowing his team to work on a set of unanswered questions exploring the reasons behind different successful golfing techniques. His belief in the power of informed intuition along with his strategy to hire a mix of scientists, golfers and engineers led to the introduction of their next revolutionary model – Big Bertha in 1991. By providing premium pricing for Big Bertha, CGC had
The company’s CEO and founder Ely Callaway was a golf champion himself during his twenties and was a powerful motivator defining the company’s culture with his charm, optimism, energy and inspiration. The company came into existence after the takeover of Hickory Stick USA, Inc. by Callaway with an investment of $435,000 and idea of mounting the product mix. Callaway prioritized development of original products and invested heavily on new product development thereby basing his strategy on technology and product innovation. The inclusion of Richard Helmstetter in 1986 as a chief of new products and Vice president of the company brought about a revolution making CGC an innovation powerhouse from its earlier existence as just a niche producer.
With the introduction of a unique clubhead model S2H2 in 1988, the company began a revolution in golf club design concepts that assisted better performance with higher efficiency. Helmstetter promoted a unique approach to research and development (R&D) by allowing his team to work on a set of unanswered questions exploring the reasons behind different successful golfing techniques. His belief in the power of informed intuition along with his strategy to hire a mix of scientists, golfers and engineers led to the introduction of their next revolutionary model – Big Bertha in 1991. By providing premium pricing for Big Bertha, CGC had
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