StudentShare solutions
Triangle menu

Garmin Analysis - Looking To the Future - Research Paper Example

Extract of sample
Garmin Analysis - Looking To the Future

In order to go forward in the future, there are three scenarios under consideration, which are related to different possible course of strategic actions that the company may follow to address its problems. In this report, these strategic options are evaluated on the basis of various financial models and descriptive analysis of the company’s existing position and outcome of these decisions. Before the analysis is carried out, it would be useful to provide a summary table of the performance of five identified business segments of the company in the last three years. Business Segments 2011 Net Sales % Change in Sales 2011 EBIT % Change in EBIT 2010 Net Sales % Change in Sales 2010 EBIT % Change in EBIT 2009 Net Sales 2009 EBIT Outdoor 363,223 13.82 171,245 13.43 319,119 6.62 150,973 2.01 299,300 147,996 Fitness 298,163 23.99 107,881 24.72 240,473 41.77 86,499 49.02 169,624 58,046 Marine 221,730 11.50 60,092 -3.75 198,860 11.94 62,431 8.71 177,644 57,430 Automobile/Mobile 1,590,598 -4.69 171,717 -16.60 1,668,939 -18.75 205,887 -57.86 2,054,127 488,584 Aviation 284,855 8.51 73,226 2.44 262,520 6.83 71,482 26.30 245,745 56,595 The table provided above provides trends in net sales and EBIT of all business segments, which would be referred to in the discussion related to the scenarios presented below. Scenario #1: Assault on the Smartphone Market Under this future scenario, the company may aim to target the Smartphone market which is worth $65 billion and it has been growing at a fast pace of 20% every year. The smart phone market is dynamic as new markets are emerging such as Africa and Asia. However, the competitive forces including companies like Apple, Google, Nokia, Blackberry, Samsung, HTC, and even manufacturers from Far East countries are already playing an important role in this industry having strong positioning and they share a major proportion of the global market. The company will have to invest heavily in developing technologies and acquiring associated businesses as Garmin does not have any prior experience and its current market share is zero. The entry into this market segment the company will require an investment of $3 billion that could be raised from the capital market by offers shares to both institutional and private investors. Move to the Smartphone segment the company will have divest non-operations including aviation, and marine, in the third year and it expects to receive $500 million. In addition, by doing so, the company will have to let go of the profits generated by these segments, which are already observed to be slowing down in the year 2011. The following financial analysis is based on certain assumptions and understanding regarding future of Smartphone industry and the company’s investment decision: 1. The time period for investment appraisal is considered to be 5 years from the completion of the project and inception of sales. 2. The cost of investment is expected to be $3 billion which will be raised by issuing additional 75 million shares at a price of $40 per share. 3. The investment is expected to generate results from the year 2013. 4. In 2011, the Smartphone industry has grown by 20% and same growth rate is assumed for the year 2012 onwards as there are no signs of slowdown in both short and medium terms. 2011 ($ mn) 2012 ($ mn) 2013 ($ mn) 2014 ($ mn) ...Show more


Garmin Analysis – Looking to the Future [Instructor Name] Garmin Analysis – Looking to the Future Background Garmin, Inc. is a US based company that is involved in three main industries that are auto/mobile, marine, aviation industry and outdoor/ fitness industry…
Author : homenickjasper
Garmin Analysis - Looking To the Future essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Garmin Analysis - Looking To the Future"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The Future of Facebook
Facebook is an online social networking site which boasts millions of users and keeps many of these “friends” connected, even though they may be in other towns, cities, states, provinces, and even other countries. Facebook is, therefore, most certainly an online novelty of sorts.
8 pages (2000 words) Research Paper
Looking After A Young Childs Self-Concept
According to the report everyone has an inherent need for self-knowledge. One can be curious about his identity and that includes basic facts about him, his family and cultural background and how these have shaped him into the person he is, his personality and how he deals with people and circumstances. This totality of self-knowledge is known as Self-concept.
7 pages (1750 words) Research Paper
Garmin Analysis - Following the Business Decisions
In this report, a comprehensive analysis of the company’s policies and their impact on overall financial outlay has been presented. Analysis of Balance Sheet The liquidity position of the company is good but it has deteriorated a little as compared to the previous year, due to increase in current liabilities of the company.
4 pages (1000 words) Research Paper
Looking For Alaska
How can I live my life to the fullest? What can I do to get what I want from life without doing the hard work? However, in this essay there is just one question that I want to answer, how does one end suffering? Many people go through lifelong suffering, and themselves go on a journey with many ups and downs trying to find an answer.
8 pages (2000 words) Research Paper
Chapter 6 : Looking Back Toward the Future -Using traditional practices in AFRICA as an entry to the global economy
Such an introduction of policies related to micro-finance are instrumental as they not only assist the local economies in developing a stable approach to economic policy and currency policy; they are also integral in seeking to provide a stable environment for the reduction of poverty.
7 pages (1750 words) Research Paper
Networking capabilities of the Garmin GNS 430/530 Avionics system
The report will then discuss the hardware installations of the GNS and how they were vital for its success in the past years as a communication device. The benefits of using a GNS 430 device will then be evaluated as well as its disadvantages. Finally, the conclusion which summarizes the report as well as looks at what future trends are expected for it as newer devices come into the market.
6 pages (1500 words) Research Paper
The Future of bussniess
It will merely have the same effects on the businesses and more importantly, on the people’s lifestyles. Though there were other several reasons which contributed to the eventual rise of the Great
6 pages (1500 words) Research Paper
Imperial Oil internal and external analysis to develop a strategy for the company for the future in regards their issues
Moreover, this ensures that the company identifies its strong points and weaknesses to figure out how to improve itself. a. One of the factors that affect the company in terms of politics of
8 pages (2000 words) Research Paper
Terrorism's Future
Even though nuclear weapons have not been used for terrorism, the trend in terrorism and proliferation of the weapons identify possible
2 pages (500 words) Research Paper
Future Planning
 Future planning in education can be defined as a process of projecting the intentions that need to be accomplished after a given period of time.Future planning is manifested through a detailed scheme or program that is created in advance for the sole aim of attaining the set objectives of the institution.
4 pages (1000 words) Research Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us