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The key issues concerning Callaway Golf Company are:

* Relationship with its retail partners
* New product development
* Marketing strategy

Problem:

Callaway has experienced its first loss of $ 27 million after 10 years of growth. Competitors had finally caught up to Callaway's superior R & D capabilities and are flooding the market with new products and promotions, raising the bar for consumers on when to replace their equipment.

Callaway's strategic success in 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. The way Callaway was able to continue their differentiation features was through their highly skilled R & D. This was expensive which is why many companies choose not to compete in the area of differentiation. Over a five year period it spent $36.3 million on R & D alone.

Revolutionary "unanswered question" approach produced true market......

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Approximate Word Count: 1362
Approximate Pages: 6 (250 words per double-spaced page)

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