Palm Ince.

Essay by bigdawg1999University, Master'sA+, June 2003

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Executive Summary

Palm Inc. is the leading competitor in the handheld computing (Personal Digital Assistant) market. The company is divided up into two operating components, PalmSource Inc. and the Solutions Group. Palm has been a dominant player in today's global economy by maintaining its aggressive strategy while also being flexible and agile to unforeseen challenges. The major problem for Palm is a decrease in the market growth, with an increase in competition. Palm must now determine how to maintain its place in the handheld computing industry.

Palm's strengths include a name brand with loyal group of customers and developers, having an immense growth and market share, the Palm Operating System, a wide range of models in their product line, and outsourcing production to focus on marketing and operating. Their weaknesses are new models competing against existing models, a limitation of the service, and Motorola providing 100 percent of processors for the handhelds.

Opportunities are the global market, consumer demand, and alliances. They face threats of increased competition in a decreasing market, smart phones, and other competitors.

The company has been struggling financially. Attempts are being made to have a positive net income by decreasing budgetary items. Palm's liquidity is healthy, although they are struggling in shareholders return.

Palm has maintained a differentiation strategy throughout its existence. They have focused much of their attention towards maintaining their leading technology. Another strategic area Palm has made a commitment is to quality. Palm's corporate level strategy has been to sell their product directly to customers, and also licensing their technology to competitors. The key to maintaining success lies in Palms ability to meet customer needs with an innovative operating system.

Table of Contents

Introduction 1

Problem Focus 1

Business Analysis 1

Financial Analysis 4

Strategic Formulation & Implementation 6...