Sales volume and high levels of customer demand point toward Garmin’s strengths in the GPS marketplace. In 2007, Garmin company announced that 75 cents per share dividends would be included for investors as a reward for the company’s sales performance (Hough, 2008). Garmin has only recently paid dividends after being in business for 20 years, which indicates sizeable growth in sales which can likely be attributed to consumer satisfaction regarding the product. One of the main strengths of a company is its ability to lure investors and use stock equities to boost capital. Garmin’s ability to pay handsome dividends and the company’s commitment to investor relations represent the firm’s largest strengths.
Additionally, Garmin has recently signed a six-year agreement with NAVTEQ, the digital map supplier responsible for the majority of Garmin’s electronic GPS routes (Annual Report). NAVTEQ will continue to provide map assistance and upgrades, allowing the company to maintain focus on its brand and remain a leader in effective and accurate GPS technologies.
The company’s main weakness is an external issue involving the current economic climate across the United States. Consumer wealth is diminishing and it is relatively common knowledge that customers are scaling back on purchases in order to sustain a quality lifestyle. This change is most noticeable with Garmin’s stock price shift from nearly $100 to $19 in 2008 (Hough). The majority of Garmin’s products are designed for the consumer rather than on a B2B model (business-to-business) which creates a situation in which the company must understand its consumer and create products which will be in high demand in difficult economic climates.
Garmin’s main opportunity lies in marketing and its ability to create effective sales and marketing promotions to build brand loyalty. With such a high volume of competition in the GPS market, Garmin ...Show more