Callaway Golf Company
“If we make a truly more satisfying product for the average golfer, not the professionals, and make it pleasingly different from the competition, the company would be successful.”
- Ely Callaway, founder, chairman, and CEO of Callaway Golf Company.
In the span of a decade Callaway Golf Company had become the dominant player in the golf equipment industry, despite the fact that the company charged premium prices. Callaway Golf Company sales had increased steadily from $5 million in 1988 to over $800 million by 1997.
The Company’s growth and diversification came out of its development of advanced technology through its own research and design. From the company’s initial existence research, development and innovative products had been Callaway Golf Company lifeline. The company’s strategic success from 1988 to 1997 is highly credited to its R & D facilities. Their approach toward innovation and technology provided a cutting edge against the other competitors in the market. Innovation and superior performing products are important in golf because equipment is thought to have a significant impact on the players’ performance. Callaway Golf Company also had to be the leader in technology to sell its products at a premium price. From 1988-1997 the company’s main strategy was research, development and advertising.
Through research and development the company introduced three revolutionary new club designs. S2H2- introduced in 1988. Which should for short, straight, hollow, hosel. This design was unique because the weight distribution of the hosel (which is the piece of the head attached to the shaft), this moved weight from the hosel farther into the head and allowed the shaft to extend deeper into the head. The design allowed weight to be transferred from a place where it was not efficient to where it would be very efficient, allowing more energy to transfer to the ball. This gave the golfer more of a feel when using the club...