Case 16 Callaway Golf: Big Bertha’s Team Hits a Long Ball
case 16
CALLAWAY GOLF: BIG BERTHA’S TEAM HITS A LONG BALL
“Callaway Golf Company designs, creates, builds and sells Demonstrably Superior and Pleasingly Different golf products. That means that any club, ball or putter in the Callaway Golf family must be a significant improvement not only upon the products of our competitors, but also our own.” (1) How does Callaway Golf achieve its goals of manufacturing and distributing Demonstrably Superior and Pleasingly Different golf products?
Callaway’s DSPD Philosophy
In 1982, after a long business career in textiles and wine making, Ely Callaway purchased and bought a 50 percent interest in Hickory Stick USA, a small pitching wedge and putter manufacturing operation. Callaway’s goal was to build Demonstrably Superior and Pleasingly Different (DSPD) golf clubs. The DSPD philosophy was based on his previous business experiences and served as the primary guiding principle for Callaway Golf, the company that grew out of Hickory Stick. (2) The DSPD philosophy provides an important foundation for Callaway Golf’s corporate mission. According to the company’s 2002 Annual Report, the mission is as follows: “Callaway Golf Company is driven to be a world class organization that designs, develops, makes and delivers demonstrably superior and pleasingly different golf products that incorporate breakthrough technologies, backs those products with noticeably superior customer service, and generates a return to our shareholders in excess of the cost of capital. We share every golfer’s passion for the game, and commit our talents and technology to increasing the satisfaction and enjoyment all golfers derive from pursuing that passion.” (3)
Implementing the DSPD Philosophy
Callaway Golf’s numerous innovations “revolutionized the industry with friendly clubs that helped golfers of all abilities find more enjoyment and a few more great shots in their game.” (4) These innovations included the 2-Ball putter
CALLAWAY GOLF: BIG BERTHA’S TEAM HITS A LONG BALL
“Callaway Golf Company designs, creates, builds and sells Demonstrably Superior and Pleasingly Different golf products. That means that any club, ball or putter in the Callaway Golf family must be a significant improvement not only upon the products of our competitors, but also our own.” (1) How does Callaway Golf achieve its goals of manufacturing and distributing Demonstrably Superior and Pleasingly Different golf products?
Callaway’s DSPD Philosophy
In 1982, after a long business career in textiles and wine making, Ely Callaway purchased and bought a 50 percent interest in Hickory Stick USA, a small pitching wedge and putter manufacturing operation. Callaway’s goal was to build Demonstrably Superior and Pleasingly Different (DSPD) golf clubs. The DSPD philosophy was based on his previous business experiences and served as the primary guiding principle for Callaway Golf, the company that grew out of Hickory Stick. (2) The DSPD philosophy provides an important foundation for Callaway Golf’s corporate mission. According to the company’s 2002 Annual Report, the mission is as follows: “Callaway Golf Company is driven to be a world class organization that designs, develops, makes and delivers demonstrably superior and pleasingly different golf products that incorporate breakthrough technologies, backs those products with noticeably superior customer service, and generates a return to our shareholders in excess of the cost of capital. We share every golfer’s passion for the game, and commit our talents and technology to increasing the satisfaction and enjoyment all golfers derive from pursuing that passion.” (3)
Implementing the DSPD Philosophy
Callaway Golf’s numerous innovations “revolutionized the industry with friendly clubs that helped golfers of all abilities find more enjoyment and a few more great shots in their game.” (4) These innovations included the 2-Ball putter