Реферат: Callaway Golf Case Essay Research Paper Contents1
- Regarding this area we can identify two groups. The first one consist of those enterprises just distributing via pro shops (custom fitting), the other group use mass merchandisers and large sporting good stores.
Extent of branding
- Callaway using more brand names than for example Karsten Manufacturing
Technological leadership
- In Golf equipment actually we can see a clear technological leadership of Callaway, companies like Taylor Made as well have a certain capacity, others like Cobra Golf are followers and do not intend to go fore a kind of technological leadership
Extent of vertical integration
- Cobra Golf is with its inhouse graphite shaft production leading in vertical integration
Product Quality
- In product quality the differences are small, the four main competitors have more or less the same quality standards.
R&D Capability
- In R&D Capability Callaway Golf with its Helmstetter Test Center still is number one
Pricing policy
- In pricing policy we can divide three groups. The first one are high end manufacturers like Callaway, Taylor Made and Karsten Manufacturing, who demand high prices for a very high standard of technical innovation. The second group is represented by cobra golf, as well offering high quality products but less innovative and cheaper because of a good vertical integration. The third group are producers like Spalding, Mc Gregor and Dunlop which mainly sell without custom fitting via mass merchandisers and mainly attract customers through a low price.
The following matrixes allow us to see how the main competitors are positioned. The first one deals with technological leadership and price.
CALLAWAY
TAYLOR MADE
KARSTEN
COBRA GOLF
SPALDING, DUNLOP ETC.
The second one relates the channels of distribution with the number of market segments served.
KARSTEN M. TAYLOR MADE CALLAWAY
COBRA
DUNLOP
Once again we can clearly extract that the main competitors use one level of distribution channels. Dunlop as an example for low end manufacturers cannot be seen as direct competitor. The first matrix allows us to define even more exact the main competitors in the high end market segment. Because of technological innovation and the same price level we can say that Callaway competes with Karsten manufacturing and Taylor Made directly, Cobras target group mainly already is different because of pricing and less advanced technology. However Cobra has a very strong position because of successful marketing and integration. Callaway has probably the best position because it is not only market leader in most segments, it as well is number one in spending for R&D and can be considered as well as technology leader. Taylor Made with Salomon has a strong parent company and a unique technology with the Bubble shaft and Karsten finally has as well a strong brand name (Ping), a good product with the fame to be very innovative, but limits itself on steel drivers. The strongest position clearly is owned by Callaway Golf.
3.2. RECOMMENDATION OF STRATEGIC MOVES
Callaway Golf is market leader in drivers and (tpgether with Cobra) in irons, with a couple of strong brands. It was as well technology leader, therefore it is important for Callaway to keep one step beyond the competitors in research & development and to avoid that knockoff imitations reduce its market share. What happened to Wilson, Spalding and Mc Gregor Golf in the end of the eighties can always happen in such dynamic markets the golf equipment one belongs to. Product differentiation is the most important factor and Callaway will do its best to make its products easily distinguishable from the ones of competitors.
As well it will be very important to draw profit from increasing popularity of some product, that means to widen the product range of a series, as we noted earlier todays golfers likes to have a variety of woods in his caddy, Callaway will try to increase sales because of that phenomenon.
Cobra Golf Company, the number three in drivers, will try to increase market share with products of high quality, just a bit less innovative than the Callaway ones but by far better in price. As well Cobra will maintain the pro endorsements in tournament and should be attentive that the name Cobra Golf is present at all the tournaments. Cobra has the advantage of a good vertical integration and as well will profit from cost sharing synergies with the other golf equipment manufacturers in the Fortune Brands combine. However, with Callaway entering the Golf Ball Segment there will be another market segment of direct competition between both companies.
Karsten Manufacturing will as it always did try to compete with Callaway in Research & Development but with a slightly different philosophy. The ongoing refuse of relatively expansive titanium drivers brings costs advantages for Karsten. Karsten as well is market leader in putters and will try to keep this position. The drivers are not very popular. Therefore for Karsten R&D and Marketing are the most important factors to respect.