ELY: Taking over

Callaway golf has exploded especially after signing of Phil Mickleson. Phil became the first player to win a major with Callaway products. This was huge for Callaway who finally could validate the quality of their products with a major winner. In 2007, Callaway saw a 10.5% increase in annual revenue to $1.1bn. This is significant seeing as it was already the largest firm in the golf industry. To add to this, Callaway's recent lawsuit victory over Titleist may have serious consequences for the golf ball market. Callaway are requesting an appropriate remedy, including injunctive relief and damages.This comes hand in hand with the launch of Callaway's new innovative golf ball. With Callaway no longer being scorned upon by the better players they are tapping into the real money spenders in the industry.They now have a competitive products for the quality players as well as a golf ball which is becoming more and more popular. To add to this, Callaway have finally been able to produce a bladed club utilizing the technology acquired from the purchase of Top Flite. This will further help tap into top end player's golf expenditure. If they continue to dominant the club market and take a larger share of the ball market, Callaway will see a further increase in its annual revenue and share price. The other firms in the industry cannot compete with the range of products they provide. Callaway in the next 6 months is going to go from strength to strength especially if Callaway players have continued success.