Before talking about future strategic direction of Callaway Golf Company, I'd like to talk a little bit about the company's current business strategy. We know, almost every company's business strategy is basically to provide the best products among the competitors and to be the market leader as well as popular on that product. After retiring from the CEO, when Ely Calloway started leading the company again, he wanted to accomplish the strategy he was dreaming of, "directing the company's resources – talent, energy and money – in an ever increasing degree toward the creation, design, production, sale and service of new and better products." Ely also applied his philosophy to gain the success which was, ""true long-term success comes from innovative products" - which further made him to develop their product which included the Big Bertha Driver, Big Bertha irons, Big Bertha II and golf balls. After reading the case, I feel that that the company follows the porter's differentiation strategy and this strategy also matches with Ely's philosophy. Callaway Golf Company always differentiates goods and services to satisfy the needs of customers through a sustainable competitive advantage. This later allows this company to desensitize prices and focus on value that generates a comparatively higher price and a better margin. The company also tries to differentiate itself from other golf manufacturers/retailers with its customer service. They have already built up a highly trained, well-paid, and empowered customer service staff to improve and enhance customer perception. Callaway's strategy centers on innovation in club design, celebrity endorsements, advertising, and distribution. Its competitive advantage over rivals is due to Callaway's competing differentiation strategies. From chapter 5, we have learned that the benefits of differentiation require producers to segment markets in order to tar...