Strategic for the Callaway Golf Company - Business Plan Example

Strategic Plan for the Callaway Golf Company Implementation Plan To successfully resolve issues of dwindling market and lack of performance by acquisitions experienced in Callaway Golf Company, the company will start by rebranding the production of older models which were currently being used by the company under a different brand name known as Top Flite. The process will be challenging, but the company will ensure that it comes out as a success. The company will also have to create clubs under the Top Flite after a given duration of time because curiosity caused by the advent or incorporation of new technologies dies after a short period of time. This will greatly save then issues related to costs. Moreover, the company will ensure that they avail and obtain their products from shelves of great retailers like Wal-mart. This will work towards creating awareness on the existence of their products on the market and perform market analysis from the sample purchased from the shelves. Likewise, it will also embark on the task of creating more shelves for their products like the big box specialty stores used by major retailers in the market. Lastly, the company will impose lower costs on their products to regain a fraction of the market which they lose to competitors (David, 2005). Objectives To ensure the complete recycle of older models of golfing clubs using Top Flite. To ensure a complete rebrand and production of golfing clubs older models into new ones To minimize cannibalization of the Callaway drivers and irons To use retailer shelves in marketing of the products. To expand and create more space for in shelves used for displaying products Functional Tactics For the company to increase its profit margins, it will be forced to discount on their products which are the clubs. This will give then an advantage over their competitors because they will be able to take advantage of the low development on technology and maximize it for the future benefit before the prices skyrockets in the coming years. Secondly, the creation of more shelf space by the company in large retail stores will ensure that their products are seen by the large prospective number of clients visiting the stores for various purposes. Moreover, availing clubs of all technology levels at the shelves will a rise customers’ curiosity and in the process their behavior towards the products will be changed ending in the purchase of the wide range of clubs displayed at the shelves. Thirdly, the company will use a less expensive line of product which will enable them display their clubs at different store shelves within targeted locations. This will be resourceful as they will enjoy a large revenue boost since they will be saving the profits collected to enable them access larger markets which no other golf club makers have ventured into by keenly analyzing the market trends of different markets while saving on profits at the same time. Lastly, the company will introduce new product lines which will be resourceful towards giving them the ability to price-discriminate in the market for golf industry. Likewise, the company will greatly benefit from this because it would be able to expand on their range of product quality with the new clubs introduced through the new line, therefore also increasing their sales volumes. Action Items To achieve this, various actions items will be used by the company. These will include the use of shelves to display the different clubs that the company produces. Moreover, the shelves will also make the clubs more conspicuous to the customers hence tempting them to make purchase. The second action item will be the use of product prices. This will be used in favor of the company as for example is it will reduce the prices it charges on the clubs to regain back the lost customers or use prices to control on the grasp in market. The third action items that will be used by the company for the process swill involve the use of retail stores. This is because retail stores accommodate large flow of individuals who are driven by different needs to visit such stores. The use of the retail stores by the company will create awareness among the prospective customer about the existence of the companies club in the market. The last action item that the company will use will involve the use of other brands to produce their clubs. This will buy them the chance to forma new line of product while making their processes in order to start operations (Lal & Prescott, 2005). Milestones and a Deadline The company will face milestones in minimizing cannibalization of their drivers and irons the deadline for this will mean that the company will be forced to create their clubs under a different brand for two years to allow the hype experienced on the use of new technology to die down before starting their own line of product to avoid such incidences of drop in sales after the hype surrounding the use of new technology dies. In addition, the company will also find the process of rebranding their clubs very challenging as they may be forced to use different brands in the marketing and sales of their products and the results is that they may not enjoy the profits or customers loyalty compared to when working under their own brand. The process of completely rebranding their clubs may take a period of one two year for the clubs to maximize on the such issues like sales potential and then adopt a new technology other than the one which received hype in the market from all major stakeholders. Tasks and Task Ownership The task required to achieve the objectives will be based on the sore responsibility of the company’s management as they are the ones who will be concerned with strategic matters of the company and they ensure that they develop a large and diversified business and apply strong core branding which is easily distinguished from those of the competitors. The top engineers in the company will ensure that value is achieved through the products and the brand name used by the company reflects on the quality and integrity of the products which are clubs. The company’s analyst will ensure that the company is accurately positioned to gain market share among the targeted customers and that sales grows by recording yearly increase on the profits and growth margins. Moreover, the company’s marketers will ensure that the products receives ideal placement in the golf stores and other retail stores used in the distribution of the product. Resource Allocation The company will allocate its resources towards information processing center in order to know the different needs of their customers. Likewise, the center will help in gathering different information on customers which may be later used by the company in designing their golfing clubs to suit the different needs of the customers with their products. Secondly, resources will be allocate towards the set-up of different manufacturing and warehouse in different regions which will be used to produce and store the wide variety of golfing clubs available in markets. This will also enable them to design new products to enter new markets thus easily differentiate their products from those produced by competitors in the market. Thirdly, resources will also be allocated towards research and development on technological related technologies which can improve on both the quality and value of golfing clubs produced by the company. This will enable the company to attract more customers with their new products as they will stay ahead of their competitors in terms of innovation and the end results will be that that company will enjoy increased profits margins while also enjoying customer loyalty for their existing and new products in the market. Organizational Change Management Strategies For the company to successfully succeed in implementing certain success factors into their operations, the company should introduce new strategies like the pre-owned resale of their products which will involve low processing cost. This will greatly encourage customers to purchase their golfing clubs as they are assured of a replacement of reduction on the cost of purchase on new golfing clubs from the company and in the process they will develop loyalty towards the company’s products. Moreover, the company can also decide to expand or diversify their portfolio to other golf complements like offer of cigars and watches for loyal customers of the company. This will motivate many golfers who will in turn pay numerous visits to the company for their golfing clubs needs therefore increasing profits accrued by the company through the numerous purchase visits on the different stores. Likewise, this will market the company among prospective customers will choose it as their destination for purchasing golfing clubs with the aim of winning or being awarded the golf compliments offered to customers by the company (Lussier & Kimball, 2014). References David, F. R. (2005). Strategic management: Cases. Upper Saddle River, N.J: Pearson Prentice Hall. Lal, R., & Prescott, E. D. (2005). Callaway Golf Company. Cambridge, Mass: Harvard Business School Publishing. Lussier, R. N., & Kimball, D. C. (2014). Applied sport management skills. Read More