Case | HBS Case Collection | August 2000 (Revised September 2005)

Callaway Golf Company

by Rajiv Lal and Edie Prescott

Abstract

Describes a situation faced by Mr. Ely Callaway, the 80-year-old founder, chairman, and CEO of Callaway Golf Co., in the fall of 1999. After a decade of stunning success with the marketing concept, Callaway suffered a significant loss and witnessed a steep decline in sales in 1998. Mr. Callaway had built a $800 million business by making a truly more satisfying product for the average golfer, making it pleasingly different from the competition and communicating the benefits to the consumer. The results in 1998 forced Mr. Callaway to reconsider the marketing program that had successfully supported the product until now.

Keywords: Marketing Strategy; Crisis Management; Communication Strategy; Product; Business Strategy; Change Management; Competitive Advantage;

Citation:

Lal, Rajiv, and Edie Prescott. "Callaway Golf Company." Harvard Business School Case 501-019, August 2000. (Revised September 2005.)