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Introduction

Introduction. Industry’s popularity has been reborn with players, such as Tiger Woods, David Duval, and Phil Mickelson. Second quarter of 2002 showed an increasing net income of 37% as compared to 11% for the entire year of 2001.

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Introduction

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Presentation Transcript

  1. Introduction • Industry’s popularity has been reborn with players, such as Tiger Woods, David Duval, and Phil Mickelson. • Second quarter of 2002 showed an increasing net income of 37% as compared to 11% for the entire year of 2001. • Callaway spends about $25M annually on R & D for the development of new clubs, balls, and drivers. • Callaway’s market niche exists in golf drivers for novice golfers. • The implementation of our group’s IT infrastructure upgrade could increase annual revenues by as much as 15%.

  2. Industry Analysis Competitors Traditional • Ping 2. Adams 3. Cleveland Industry Analysis Company Analysis Strategy Summary

  3. Industry Analysis Competitors Subsidiaries • Titleist (Fortune Brands) 2. TaylorMade (Adidas) 3. Nike Golf (NIKE) Industry Analysis Company Analysis Strategy Summary

  4. Industry Analysis Strengths • Established Position • Affluent Customer Base • Customer Longevity • Global Market • Strong Web Presence • Inclined Towards Innovation (R&D) Industry Analysis Company Analysis Strategy Summary

  5. Industry Analysis Weaknesses • Dependence on Tiger • Possible Fad Popularity • Limited Use of Web Presence Industry Analysis Company Analysis Strategy Summary

  6. Industry Analysis Opportunities • Generate New Interest in Sport • (Increased Collegiate Presence) • Increase Overall Affordability Industry Analysis Company Analysis Strategy Summary

  7. Industry Analysis Threats • Increased Competition from • Wholly-Owned Subsidiaries • Interference of Rule-Making Bodies (ERC II) • Clones • Tiger Injury • Other Sports Industry Analysis Company Analysis Strategy Summary

  8. Company Analysis • Strengths • Prestigious Brand Name • Low Depreciation • Technical Innovations • Carbon fiber driver head • Polymer putter inserts

  9. Company Analysis • Weaknesses • Golf balls • Lack of an established 3-piece ball • Lack of 2-piece balls • High price • Lack of mid-range irons

  10. Company Analysis • Opportunities • Strategic Alliance • Mid-Priced Ball Market • Capitalize on merchandising • Tour representation • Threats • Highly capitalized large companies

  11. Strategic recommendations • Do NOT change the business model • Enhance current IT infrastructure • Integrate Online Purchasing Industry Analysis Company Analysis Strategy Summary

  12. Strategic recommendations Enhancing Current IT Infrastructure Subscribe Retail Customers • Video Submission for Analysis and R&D • (Digital Camera Kiosk – M-peg submission) • (Optical Sensor Relay) • Multi-Location Access to Individual Account • (Web Protocol) 3. Purchasing Trends 4. Retailer Accountability Industry Analysis Company Analysis Strategy Summary

  13. Strategic recommendations Integrating Online Purchasing Provide Centralized Storefront for Dispersed Retailers / DCs 1. Increase Callaway exposure 2. Provide Unique Service • Provide Additional Business for • Retailers / DCs Industry Analysis Company Analysis Strategy Summary

  14. How? Supplier Customer Retailer Distribution Center Industry Analysis Company Analysis Strategy Summary

  15. How? Supplier Customer Retailer Distribution Center Industry Analysis Company Analysis Strategy Summary

  16. How? Supplier Customer Retailer Distribution Center Industry Analysis Company Analysis Strategy Summary

  17. Summary

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