Callaway

Callaway

SWOT

Strengths

* Well known name

* Best-in-industry R&D

* Many pro golfers endorsing Callaway products

* Innovative

* Competitive nature

* Products made with strict procedures to ensure quality

* Seller-buyer relationships

Weaknesses

* Unfamiliar golfers using the products

* At times innovation goes too far, and provides a performance advantage, which leads to the PGA banning the product from play

Opportunities

* To maintain leadership in just about every aspect of golf products

* To get more people interested in golf

Threats

* Declining innovation gap between rivals

* Competitors gaining market share

* Less people buying golf products

* One word--"Nike"

5-Forces

Rivalry between competing sellers - Strong - As seen above, innovation gap is closing quickly and companies Nike, and Taylor made are coming out with their own fantastic products. Nike wants to take over the world someday; why not start with golf?

Firms in other industries selling substitute products - Weak- What would a substitute for a golf club be; a hockey stick? Nah, that wouldn't work.

Potential New Entrants - Moderate - Moderate rather than strong due to the fact that a new company needs some innovation of their own to be able to compete with the goliath's of golf; a number of small companies on the other hand...

Competitive Pressures from Buyers - Normal - The clubs are usually sold in retail outlets, where the price you see is what you pay a lot of the time; not much in the way of direct selling.