The main issues identified in this case are:
- Garmin faced a decline in market share, revenue growth, and its overall commercial scale as more drivers and travelers started using the GPS systems via their smartphones for direction and maps.
- The market for these navigation devices is constantly changing and, therefore, requires fast response to maintain its leadership role in satellite navigation equipment.
The SWOT analysis below provides the pros and cons of the current situation at Garmin Ltd.
Based on the issues and the SWOT analysis, the following alternative solutions are available:
This type of industry requires flexible plans that promote taking technological changes in stride, as well as pursuing its efforts. Garmin should be careful with serving the best interest of its shareholders, as its engineering talent is still quite a limited resource. Any strategy should be estimated on its capacity to maximize operating income rate; it will ensure that engineering hours of the enterprise are used most beneficially.
Initiate new growth in one of Garmin’s inert or dying areas of activity. Garmin is strong in industry diversity for the innovations inter-industry experimentation can stimulate.
All strategic alternatives should be based on their feasibility concerning the company’s resources and the current market situation. Garmin executives should apply environmental scanning by monitoring data to identify emerging trends and be prepared to follow and respond to them to address the challenges.
My proposed solution to address the company’s weak point is to enhance vehicle integration of auto products. The company’s auto sector is rapidly worsening due to the common replacement of the dash-top navigation parts with smartphones. Garmin can shift direction to its in-dash OEM units and focus on competitive enhancement in this sector by developing more fully incorporated proposals.
I would implement the solution by combining sensor-based characteristics and mixing current console functional capability, including media and climate management, into the navigational unit. Also, Garmin should seriously invest in the marketing sector. Such a solution might be more appealing to car manufacturers as compared to existing Garmin approaches and new features, such as faster searching for addresses or target points, speech-enabled navigation, and emphasizing exit services.
Reference
Frenzel, J. (2019). A strategic audit of Garmin LTD. Honors Theses, University of Nebraska-Lincoln, pp. –14.