1. What was Callaway�s strategy (1988-1997)? Product Innovation: Callaway�s 1988-1997 product strategy was to create a �truly satisfying product for the average golfer�. To do so, CGC invested heavily in Research & Development. R&D focused on 400 �RCH questions� to first improve design parameters, which then led to superior performing golf clubs. Second, as CGC achieved product differentiation, it became increasingly important to continuously update technology. Product innovation resulted in three revolutionary club designs (a) (b) and (c) during this time period: 1988-1997 PRODUCT TIMELINE (A) S2H2 � Short-Straight-Hollow=Hosel �Redistributes weight when swung = farther shot = customer satisfaction (B) Big Bertha � Incorporates S2H2 + oversized club = �sweet spot� = customer satisfaction (B) Titanium Drivers � Material moved away from club head = More forgiving = customer satisfaction In 1997, CGC began the first of several acquisitions, Odyssey Golf, to purchase their No. 1 selling line of putters. By year-end 1997, CGC�s product mix included metal woods......

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