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Marketing Opportunity Analysis – SWOT Strengths ???Innovation ??? Callaway delivers cutting edge technologies to its customers with new products and improvements to existing products. ???Cash position and lack of debt ??? Callaway has no debt, and this enables Callaway to go after different acquisitions and investment opportunities that its weaker competitors are not able to pursue. ???Size ??? Callaway is the #1 golf manufacturing company in the world. With Callaway’s size, it gives Callaway power and advantages over competitors. Aggressive acquisition strategy – Callaway’s size and cash flow capabilities allow Callaway to acquire companies such as Odyssey , Ping Golf for its technology, manufacturing facilities, and increased market share. ???Product Line Width ??? Through Callaway’s acquisition and its own technology, Callaway has developed golf clubs and merchandise for every kind of golfer at every level of golf from beginner to pro. Callaway has junior’s, men’s, women’s, and even senior clubs that it offers to its customers. Superior quality and Customer Service ??? Callaway provides superior quality of products and excellence in customer service. The company provides other means of support for its retailers including product advertising, endorsement, demo days, warranty programs and closeouts. ???Promotion Ability- Callaway sponsors professional golfers in all five major Tours (PGA, LPGA, Senior PGA, European PGA, and Nike) as a vehicle to promote its products. Some CGC pros were Anika Sorenstam, Rocco Mediate, Colin Montgomerie, Jim Colbert e. t. c. Callaway also uses television, radio, and print ads in its media promotions. Closeout options ??? Once a new product was introduced, the Retailers have the discretion to mark down the remaining inventory to a price at which it would sell. Weaknesses ???Dependency on off-course retail shops ??? Although on-course retailers were considered vital to CGC, the company relied more heavily on off-course shops. About 65% of the CGC business was done in off-course retail shops. ???Ineffective point-of ???sale product Knowledge ??? Not all the of aids like equipment brochures, informational CD ROMS’s, televisions with information video cassettes, pocket-sized product knowledge and product training were always reaching the point-of-sale. Undereducated retail salesperson ??? Resistance from retailers on product training result in undereducated salesperson about CGC technology and therefore could not justify the high prices to their customers. ???Absence of Customer Relationship Management ??? No process of carefully managing detailed information about premium customer and all customers “touch points” to maximize customer loyality. ???” No volume discount policy and credit terms – Callaway have tight payment schedule within the industry . 2% discount if paid within 30 days, otherwise pay in full within 60 days.
Some manufacturers offered up to 120 days. ???Brand Licensing ??? Callaway licenses its trademark out to a very select group that produces, markets, and sells its products. Callaway does this trusting that the licensee will respect and uphold its values, but this is not always guaranteed and could potentially reflect negatively on Callaway’s reputation. Opportunities ???Acquisition Opportunities ??? Since Callaway has no debt, Callaway has the ability to invest in further acquisitions to strengthen the company and gain market share.
For. E. g. Ping Golf private owned Golf Company. ???Aging Population ??? With the increasing numbers of baby boomers retiring and playing more golf, Callaway has the opportunity to increase its sales. ???Integration of foreign operations ??? Callaway will be able to fully take advantage by leveraging its strategies, personnel, ideas and customer contacts. ???Patent Ability ??? Callaway can plan for patenting new technology used for product development. This intellectual property is unique only to Callaway for the benefit of their customers. Golf Club Market ??? With Callaway’s acquisition of Odessey putters, Callaway will be able to broaden its appeal to different markets to expand its business. Threats ???CGC golf users switching to another Brand ??? CGC should balance the catch -22 of new product development otherwise it cannot prevent existing CGC golf club users from switching to another brand. ???Private Label Products- Retailers are killing the market share of CGC by selling private label product to beginners and Average golfers. Impersonators/Knock-Offs – Callaway will have to deal with the growing threat of people in Asia and the Middle East pirating its clubs and selling them at a lower cost over the Internet and in Callaway’s U. S. and international markets. This can have a negative affect on Callaway’s brand image and its sales. ???Decrease in number of people playing golf ??? A decreased number of golfers involved in the sport would lead to decreased sales and profits. ???Acquisition target ??? A decrease in sales and profits could make Callaway an acquisition target.