bmg garmin analysis

8/10/2019 BMG Garmin Analysis

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1/12/2015

BMG 1014

MANAGEMENTTopic:Shifting Direction

Page 262-263 | Chapter 8 Foundation of Planning


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Group 3 :

Nurul Asmira Bt Rozlan1131123131 Tengku Nur Ameera Bt Tengku Azlan -1131123132

Norsyahira Bt Baharuddin1141124606

Shanti A/P Selvakumar1131123034

Jessica A/P Philominraj1131121305

Lai Khar Yee1132702142

1/12/2015


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Summary

Global leader in satellite navigation

Making superior products for automotive, aviation, marine,outdoor & sports that are essential parts of customers lives.


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Integrates music, phone, gaming,

web & GPS into one unit

Free GPS apps

Reason

Smart phones


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The Changes that Garmin Made :

Launch 6 navigation-friendlysmartphones (Garminfone)

Introduce even higher-endmodels, comes with a fancymagnetic mount & bells-and-whistles map features (Nvi3597 LMTHD)


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Introduce speciallized GPSdevices

Introduce navigation Apps(Garmin Viago)

Partner with automakers to

embed its GPS

system in car dashboard.


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Question 1

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What role do you think goals would play in planning the change indirection for the company?

List some goals you think might be important.


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1/12/2015

The role of goals in planning thechange in direction of the company

Determines a course of action and aids them in preparing forfuture changes

Future state that the company strives to achieve Provide guidance and direction

evaluate and control performanceemployees

Resources:

http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html


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Goals

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Increase product sales through alternative markets

Collaboration with automakers, aviation industry, marine industry.

Increase value and shareholders profit

Through increase in sales via the various collaborationsshareholders profit and value will be increase

Establish a need to ensure product existence

eg: via making it a requirement in automobiles product existencewould be able to be retained

Up to date in terms of technology to enhance product

capabilities

In house research and development department to keep abreastwith changing technological advances


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Question 2

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What types of plans would be needed in an industry such as this one?(For instance, long-term or short-term, or both?)

Explain why you think these plans woud be important.


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Garmin products in short-term plan!

Automotive

Outdoor

Fitness

Marine

Aviation


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Can invent many products as it can compete with upcomingtechnology.

Attract the interest of customers by creating new innovative productthat is essential for nowadays technology era.

Make the company survive with their competitors.

Why these plans woud be important?


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Question 3

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What contingency factors might affect the planning Garmin executiveshave to do?

How might those contingency factors affect the planning?


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The 3 contingency factors that affect theplanning of Garmin executives:

1) Environment Uncertainty

When uncertainty is high, plans should be more specific but flexible.

Plans need always updated to what customers desires.

As example: Garmins executive come out with idea to partneringwith automakers to embed the GPS system in car dashboard.

A company must be aware about the changes of technology.


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2) Length of Future Commitment

Plans should extend far enough to meet thosecommitments made when the plans were

developed.

Example : Garmin partnering with automakers tokeep stay in the market.


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3) Organizational Level

The level of manager whether he/she will be involved inoperational planning or strategic planning

Lower- level managers do operational planning while upper-level managers do strategic planning.

As managers move up through the levels of the organization

their planning becomes more strategy oriented.


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The level of a manager determines whether he orshe will be more involved in operational planning

or more involved in strategic planning.


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Question 4What planning challenges do you think Garmin executives face withcontinuing to be the global market leader? How should they cope withthese challenges?


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Resources

http://www.pcmag.com

http://www.garmin.com

Forbes

http://www.technologyreview.com


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Competitors

Quality

Price

Accuracy

Accessibility

Dynamic

EnvironmentPlanning must be specific

but flexible


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Competitors

Newtechnology

Dynamic

EnvironmentPlanning must be specific

but flexible


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2007 : Stock pickers predictedGarmin as the next Apple

Smartphones happened

CEO Min Kao told Forbes that hewasnt worried because of highbarriers to entry

2012 : Google free map navigationapp made available for freedownload in IPhone, 10 Million people

downloaded it in a day, almost as

many as the number that boughtGarmin GPS in a year!

Garmin sales shrunk by 15%, worthless than a third of what it use to be

in 2007.


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How they cope with new

tech?

Environmental scanning, knowing what consumer really want

Add more function ; With goodies like free traffic reporting, lifetime map

updates, and local search becoming commonplace Introducing even higher-end models like the Nvi 3597 LMTHD, which sells for

$379.99 but comes with a fancy magnetic mount and bells-and-whistles mapfeatures. It can tell you what highway lane to be in and will alert you to turnright at Starbucks, something that phones cant do.

Lower price ; They never been more affordable

Highlighting the downside of using smartphone as GPS ; Many thinks they'remore convenient than using a phone, because you can leave the PND in thecar, and not drain your phone's juice while on the road


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Outcome

CEO Min Kao said in a statement. This is a great way to

start the year; yet, we remain cautious regarding the PND

industry as much of our strength was related to global

market share gains. The revenue growth of our core

business segments of outdoor, fitness, aviation and marine

was 14%, highlighting the continued diversification in ourbusiness model. We continue to grow our research and

development investment in these segments, as well as auto

OEM, in order to capitalize on the numerous long-term

growth initiatives in each of them.


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CONCLUSION

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Thank you

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