1. Page 1
An Environmental Analysis for
Callaway Golf
Koree Kitchens
Full Sail University
Project & Portfolio II: Business and Marketing
November 6, 2019
2. Page 2
The STEEPLE Analysis
SOCIOLOGICAL:
According to the national golf foundation the golf industry has seen five straight years with over
2 million plus beginner golfers. Last year the industry grew by 2.6 million the highest total to
date. The biggest customer segment of golfers is those ages 18-34 with over 6 plus million
participants (Golf Industry, 2019). The growing
TECHNOLOGICAL:
Callaway golf has created an artificial intelligence to create and design new cutting-edge golf
clubs. In 2019 Callaway introduced 2 new clubs solely created and designed by the new
artificial intelligence that was introduced. This technology is able to cycle through over 15,000
iterations of designs to determine which would be the best, cutting back on thousands of hours
previously used to test these designs (Simpson, 2019).
ECONOMIC:
Just like any entertainment company, golf and golf companies see a direct correlation with their
sales and the economy. When the economy is struggling golf is one of the first things that
people tend to cut back on. The U.S. golf industry saw a negative growth from 2008 to 2010.
During this time non-affluent consumers along with affluent consumers decreased their
spending on golf by over 15% (Kiernan, 2013). The economy has been consistently on the rise
and so has the number of golfers and the spending seen in the U.S.
ECOLOGICAL:
Callaway has long implemented environmental and green initiatives to help reduce
environmental footprint. Callaway received U.S. EPA Smartway certificate in 2017. In 2019
Callaway had received a high rating score of 99.8% for their health and safety of their
Monterrey, Mexico manufacturing facility. (Environmental Healthy, N.D.)
POLITICAL:
Callaway Golf operates and distributes in over 100 countries. In each of these countries
Callaway has to work with local and national governments to support their business ventures. In
the United States Callaway has no determined political affiliates, but in 2016 100% of donations
given to the presidential election campaigns by employees of the company was given to the
democratic party (Callaway Golf, N.D.)
LEGAL:
Callaway Golf has done a good job of staying out of the legal spotlight when it comes to
consumers lawsuits. Callaway, however, has been in the center of lawsuits with golf competitor
Titleist in regard to technology used for the Titleist Pro V1 golf ball. (Press Release, 2009). The
legal case had ruled in favor of Titleist and has since been resolved.
ETHICAL:
3. Page 3
Callaway conducts its philanthropy through the Callaway Golf Company Foundation. This
foundation was established with the mission to create healthy communities where the
company’s employees and stakeholders live and work. Some of the groups and programs that
Callaway supports is world golf foundation, pro kids golf academy, and the challenged athlete’s
foundation. Callaway also offers scholarships to select promising students available to the
dependents of employees (corporate profiles, 2017).
4. Page 4
The SWOT Analysis
HELPFUL HARMFUL
INTERNAL
STRENGTHS
1.Companies ability to consistently
turn a profit and have a low debt to
asset ratio. The ability to have access
to funds at all times gives them an
edge to strike on different
opportunities when they me along.
2.Diverse product line with multiple
sub brands that appeal to all different
type of golfers and their skills.
Callaway is the premium high-end
brand and Odyssey is the value brand.
3.Strong leadership with minimum
turnover in upper management. The
lack of turnover in management gives
opportunity to instill a consistent
culture within the company
WEAKNESSES
1.The marketing of its products is very
minimum, while the sales mask their
products as a success, competitor can
take advantage and sneak into their
market share with better marketing and
advertising.
2. Have been slow to entering into new
target markets with the growing
popularity of the game among
previously minority golfers.
3.Lack of new innovations that keep in
line with the growing usage of
technology.
EXTERNAL
OPPORTUNITIES
1.The growing trend of online shopping
is a great opportunity to reach clients
all across the world. Callaway reaches
over 100 countries across the world
currently and have the ability to reach
more with the online store.
2.Increased popularity and growth of
the golf industry within the women
population. 35% of new golfers are
women and 35% of junior golfers are
women
3. Large number of star golfers that are
on staff. Some of those biggest stars
include Phil Mickelson, Sergio Garcia,
and Xander Schauffele. These golf pros
give a good marketing platform.
THREATS
1.Intense competition. The Golf
industry has many companies that
compete, but have three main players
in Callaway, Titleist, and TaylorMade.
Titleist and TaylorMade pose a large
threat in the marketplace for Callaway
2.Being positioned in many countries
around the world Callaway is
susceptible to face lawsuits in those
various countries.
3.The growth of online shopping can
impact their already established
physical infrastructure.
5. Page 5
Conclusions: (Include Citations)
Over the years Callaway golf has been able to carve out a good reputation as
one of the leaders in golf equipment in the world. Callaway has been able to do this
through the strength of their product name and their various product lines that is able to
appeal to many golfers in the golf community. Callaway’s brand name has been a key
contributor towards to the success of the company over its competitors. Callaway has
turned a profit year after year which gives an advantage with the ability to make key
acquisitions at any point. An opportunity that Callaway can capitalize on is the growing
trend of online shopping and its ability to reach audiences from all across the world.
These platforms should be utilized to the max to reach these audiences before the
competitors do. Another opportunity is the growing population of female golfers, 35% of
new golfers are women and 35% of junior golfers are women. (Hennessey, 2019).
These numbers show that women are becoming more and more involved in the game of
golf and creating marketing and brand lines that coincide with these demographics
could be the key to growth with this market.
While Callaway seems well positioned to have continued success well into the
future there are also threats to the company as well. One key threat that Callaway has
is the intense competition in the golf industry. The company that is able to capture the
new markets that are making their way into the golf industry will lead to future success.
A weakness that Callaway has is that lack of marketing and advertising they do with
their big stars that are on staff. By utilizing these stars to advertise the could be a key to
taking a step forward in growth for the company.
6. Page 6
References:
In APA format, list each reference you used (at least five). Each reference in this section should
have a corresponding “short form” citation in the STEEPLE section or the Conclusions section.
Hennessey, S. (2019, February 26). Encouraging golf participation trends for 2019-a 30-plus-
year golf executive dishes on an optimistic state of the industry. Retrieved from
https://www.golfdigest.com/story/encouraging-golf-participation-trends-for-2019a-30-
plus-year-golf-executive-dishes-on-an-optimistic-state-of-the-industry
Corporate Profiles. (2017, June). Retrieved from
http://web.a.ebscohost.com.oclc.fullsail.edu:81/ehost/pdfviewer/pdfviewer?vid=5&sid=a
cdd3e22-d1d6-4fb4-84a5-7d4136702479@sdc-v-sessmgr01
Kiernan, J. (2013, February 20). Ask the Experts: The Connection Between the Golf Industry,
the Economy & Consumer Spending. Retrieved from
https://wallethub.com/edu/b/how-to-save-money-on-golf/25736/
Callaway Staff Pros: Team Callaway. (n.d.). Retrieved November 10, 2019, from
https://www.callawaygolf.ca/en/team-callaway/
Callaway Golf: Total Contributions. (n.d.). Retrieved November 10, 2019, from
https://www.opensecrets.org/orgs/totals.php?id=D000042596&type=P&cycle=2020
Environmental Health. (n.d.). Retrieved November 10, 2019, from
https://www.callawaygolf.com/on/demandware.static/-/Sites-CG4-
Library/en_US/v1573363411431/customer-service/corporate/Environmental-Health-
Safety-Leadership-October-2019.pdf
Press Release. (2009, March 3). Retrieved from
https://ir.callawaygolf.com/news-releases/news-release-details/callaway-golf-files-new-
patent-infringement-suit-against
Simpson, M. (2019, January 4). Callaway Golf uses artificial intelligence to create newest clubs.
Retrieved from
https://www.itbusiness.ca/news/callaway-golf-creates-golf-clubs-using-artificial-
intelligence/108092
Golf Industry Facts. (2019). Retrieved from
https://www.ngf.org/golf-industry-research/.
