SOURCES
1. Leverage use of cash and control expenses
Garmin has the strength afforded a company with significant assets and no long-term debt. Garmin could put price pressure on smaller competitors by becoming even more efficient with its own expenses and use of inventory and build up a stronger cash position in order to reduce prices or use the cash for purchase into a marketplace through its competitors or incentives to partners.
2. Diversify Product Line
The popularity of Smart phones and online mapping software is a risk to Garmin’s business model as there will be less desire to purchase stand-alone navigation devices. Garmin must either diversify its product line by selling IP or find a new way to partner with auto and boat manufacturers. Of course Garmin could compete in the phone space as well either through partnership, purchase or innovation. The risk is the margins of these businesses are typically much less and have greater competition.
Garmin has sufficient cash to purchase its way into IP or the phone market either through partnership with a phone manufacturer or buyout of smaller competitors that have valuable IP such as TOM-TOM.
On Sep 9th, Garmin launched its Nuvifone with direct distribution with AT&T Inc according to the Wall Street Journal. According to the Wall Street Journal, “the Nuviphone is Garmin’s entry into the cellular phone market and is considered key to the company’s future. Cell phone carriers have increasingly been chipping away at Garmin’s market, adding navigational features to the phones.” “In February, Garmin said it was teaming up with Taiwan-based Asustek Computer Inc. to develop and produce a cobranded line of feature-rich mobile phones.”
Sources
MSN Money. (2009, 10 6). Retrieved from http://www.msn.com: http://moneycentral.msn.com/detail/stock_quote?Symbol=GRMN%2C
Press, A. (2009, September 9). http://online.wsj.com/article/SB12542356078994945. Retrieved from The Wall Street Journal Online.Corporate Overview Sources:
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Garmin Company: About Us (2009).
Retrieved September 25, 2009, from Garmin Website:
**http://www8.garmin.com/aboutGarmin**
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Garmin Culture: Stories from the Inside (2009).
Retrieved September 25, 2009, from Garmin Website:
http://www8.garmin.com/careers/culture.html?activeBranchId=careers
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Wikipedia - The Free Encyclopedia: Garmin (Sept 18, 2009).
Retrieved September 25, 2009, from Wikipedia Website:
http://en.wikipedia.org/wiki/Garmin
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Wichita Business Journal: Report: Garmin smartphone will cost $500 (Sept 22, 2009).
Retrieved September 25, 2009, from Wichita Business Journal Website:
http://wichita.bizjournals.com/wichita/stories/2009/09/21/daily23.html
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Wall Street Journal: Garmin Tried to Find Ways Around Smartphone Threat (Sept 22, 2009).
By Ben Charney; Retrieved September 25, 2009, from Wichita Business Journal Website: http://online.wsj.com/article/BT-CO-20090921-703769.html
Technological Innovations & Marketing Strategy Cited Sources: -
Becky H. GPS brownout unlikely. Colorado Springs Business Journal (CO). n.d.;Available from: Regional Business News, Ipswich, MA. Accessed September 25, 2009.
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Bertolucci J. Let a GPS Be Your Trail Guide. Kiplinger's Personal Finance. August 2009;63(8):p70.
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Event Brief of Q2 2009 Garmin Ltd. Earnings Conference Call - Final. Fair Disclosure Wire (Quarterly Earnings Reports).
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Garmin Signals The Worst Is Past. Wall Street Journal - Eastern Edition, August 6, 2009:pB5.
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Kiley D. THE RIGHT DIRECTION. BusinessWeek. September 28, 2009;(4148):p75.
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Mott G. Golf & GPS Technology. Cigar Aficionado. September 2009;17(6):pp81-85. Available from: Business Source Premier, Ipswich, MA. Accessed October 1, 2009.
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Norman J. Garmin Changes Strategy to Focus on Specialty Bike Channel. Bicycle Retailer & Industry News. April 15, 2009;18(6):p10.
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http://electronics.pricegrabber.com/gps
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http://finance.yahoo.com/q?s=GRMN
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http://www.garmin.com
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http://www10.giscafe.com/nbc/articles/view_article.php?articleid=493609
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http://www.gpslodge.com
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http://www.mobilewhack.com/garmin-and-tomtom-sold-over-10-million-pnds-in-2007/
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http://www.tomtom.com
SWOT Sources:
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http://online.wsj.com/article/BT-CO-20090921-703769.html
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http://www.techradar.com/news/portable-devices/satnav/us-says-gps-satellite-coverage-may-fail-soon-599431
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http://www.gpsbusinessnews.com/Garmin-to-sponsor-well-known-UK-football-club-Middlesbrough_a278.html
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http://www.kiplinger.com/columns/picks/archive/2007/pick0417.htm
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http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=grmn
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http://www8.garmin.com/aboutGarmin/invRelations/execBios.html?activeBranchId=investor
Competitive Analysis Sources:
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http://www.newsweek.com/id/68909
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http://www.electronista.com/articles/08/01/30/garmin.nüvifone/
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http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=grmn
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http://www.abiresearch.com/press/1115-GPS+Devices+and+Systems+Will+Generate+Revenues+of+%24240+Billion+by+2013
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http://online.wsj.com/article/SB120027487946287479.html
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http://www8.garmin.com/pressroom/corporate/083005.html
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http://www8.garmin.com/aboutGarmin/invRelations/reports/10-K_2008.pdf
PEST Analysis Sources: -
http://en.wikipedia.org/wiki/Global_Navigation_Satellite_System
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http://en.wikipedia.org/wiki/Global_Navigation_Satellite_System
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http://en.wikipedia.org/wiki/Galileo_positioning_system
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http://en.wikipedia.org/wiki/Galileo_positioning_system
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http://www.gpsworld.com/consumer-oem/news/gps-enabled-handsets-expected-bypass-economic-downturn-3109
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US Economy Shrank 0.7%
Published: 9/30/2009 9:46:54 AM By: TradingEconomics.com, Bloomberg
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European Economy Contracts More Than Estimated
Published: 10/7/2009 9:45:19 AM By: TradingEconomics.com, Bloomberg
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The Chinese Economy May Be Heading Into an Iceberg
Published: 7/30/2009 6:50:10 PM By: Anna Fedec, contact@tradingeconomics.com
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http://www.telecomtiger.com/fullstory.aspx?passfrom=vasstory&storyid=7371
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http://ezinearticles.com/?The-Present-and-Future-of-GPS-Devices&id=1858530A
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http://www.geocaching.com/
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http://www.eetasia.com/ART_8800480860_499488_NT_8bbe4c58.HTM
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http://www.ed.ac.uk/about/edinburgh-global/research/china-eu
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http://www.gpsworld.com/gnss-system/receiver-design/news/air-force-polls-receiver-makers-solutions-satellite-problems-8487
Critical Success Factors Sources
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MSN Money. (2009, 10 6). Retrieved from http://www.msn.com: http://moneycentral.msn.com/detail/stock_quote?Symbol=GRMN%2C
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Press, A. (2009, September 9). http://online.wsj.com/article/SB12542356078994945. Retrieved from The Wall Street Journal Online.
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