Garmin Ltd Executive Summary
Garmin Ltd.
Case Analysis
Nathan Feather
July 8, 2010
Table of Contents
Executive Summary.............................................................................................................................................. 6
Background and Description of Major Issues ............................................................................................ 7
Company Background ..................................................................................................................................... 7
Relevant History ............................................................................................................................................... 9
Key People & Organizational Structure ................................................................................................ …show more content…
Threat of Substitutes: Low
Garmin has been able to use its vertical integration system as an advantage to reduce the manufacturing costs and have used its research and development efforts toward future products rather than lagging behind competitors in its industry. It is not only evident that Garmin is an industry leader, but also an industry innovator. As a result, it is very difficult for any competitor to provide products that are differentiated enough to gain any more market share than it currently possess.
When looking at the strategic group analysis, the only way for substitutes to be a viable option for competitors is by providing high-quality products for lower costs. There are few current competitors who are able to offer these products. New competitors would struggle to provide enough quality to make its products viable substitutes.
Bargaining Power of Suppliers: Moderate
Although Garmin has been able to use its expertise in GPS, it requires high-quality and technologically advanced parts for its devices. Due to this, some of the parts are newly
FEATHER | 13
developed and are customized to the needs of Garmin. This gives a little power to
Case Analysis
Nathan Feather
July 8, 2010
Table of Contents
Executive Summary.............................................................................................................................................. 6
Background and Description of Major Issues ............................................................................................ 7
Company Background ..................................................................................................................................... 7
Relevant History ............................................................................................................................................... 9
Key People & Organizational Structure ................................................................................................ …show more content…
Threat of Substitutes: Low
Garmin has been able to use its vertical integration system as an advantage to reduce the manufacturing costs and have used its research and development efforts toward future products rather than lagging behind competitors in its industry. It is not only evident that Garmin is an industry leader, but also an industry innovator. As a result, it is very difficult for any competitor to provide products that are differentiated enough to gain any more market share than it currently possess.
When looking at the strategic group analysis, the only way for substitutes to be a viable option for competitors is by providing high-quality products for lower costs. There are few current competitors who are able to offer these products. New competitors would struggle to provide enough quality to make its products viable substitutes.
Bargaining Power of Suppliers: Moderate
Although Garmin has been able to use its expertise in GPS, it requires high-quality and technologically advanced parts for its devices. Due to this, some of the parts are newly
FEATHER | 13
developed and are customized to the needs of Garmin. This gives a little power to