Case Study Description of GPS-To-Go Takes on Garmin
"GPS-to-GO is a successful company that has a wealth of brilliant researchers and scientists who have created advanced global positioning systems (GPSs) for complex air-traffic control and logistics systems. Now, the vision of one of the up and coming managers is to use GPS-to-GO's knowledge to dominate the consumer market with premium-priced and feature-rich GPS units. Even though GPS-to-GO is far ahead in terms of GPS technology, the consumer market demands low-cost units and yearly follow-on products, which requires drastically different skills than GPS-to-GO's typical five- to 10-year cost-plus government projects. One of the managers is tasked with how to meet the cost target and market window for the new product, while working with the same engineering group that caused the unit manufacturing problem and launch delays in the first place. The key issues concern 1) engineering-centric companies and their culture, business strategies and processes for managing new product development 2) the implications these strategies and processes have on addressing the needs of customers, shareholders and employees in a totally new market segment 3) the role managers can play in making critical decisions with a keen eye on roadblocks to success, such as culture, inadequate skills and overly optimistic and myopic visionaries. The case includes an Excel spreadsheet with break-even scenarios that professors can use to complement the teaching note. The case is intended for courses in managing new product commercialization, managing technology and innovation, strategic thinking, operations management and leadership."
Swot Analysis of "GPS-To-Go Takes on Garmin" written by Donald Pillittere includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gps Go's facing as an external strategic factors. Some of the topics covered in GPS-To-Go Takes on Garmin case study are - Strategic Management Strategies, Costs, Financial analysis, Managing people, Manufacturing, Marketing, Organizational culture and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the GPS-To-Go Takes on Garmin casestudy better are - – supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, geopolitical disruptions, challanges to central banks by blockchain based private currencies, increasing commodity prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of GPS-To-Go Takes on Garmin
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GPS-To-Go Takes on Garmin case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gps Go's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gps Go's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of GPS-To-Go Takes on Garmin can be done for the following purposes –
1. Strategic planning using facts provided in GPS-To-Go Takes on Garmin case study
2. Improving business portfolio management of Gps Go's
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gps Go's
Strengths GPS-To-Go Takes on Garmin | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gps Go's in GPS-To-Go Takes on Garmin Harvard Business Review case study are -
Strong track record of project management
– Gps Go's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Gps Go's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Innovation & Entrepreneurship field
– Gps Go's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Gps Go's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the GPS-To-Go Takes on Garmin Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of Gps Go's in the sector have low bargaining power. GPS-To-Go Takes on Garmin has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gps Go's to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– GPS-To-Go Takes on Garmin firm has clearly differentiated products in the market place. This has enabled Gps Go's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Gps Go's to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Gps Go's is one of the leading recruiters in the industry. Managers in the GPS-To-Go Takes on Garmin are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Gps Go's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GPS-To-Go Takes on Garmin Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Gps Go's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gps Go's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Gps Go's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Gps Go's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gps Go's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Gps Go's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Gps Go's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GPS-To-Go Takes on Garmin Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses GPS-To-Go Takes on Garmin | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GPS-To-Go Takes on Garmin are -
Interest costs
– Compare to the competition, Gps Go's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gps Go's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GPS-To-Go Takes on Garmin can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Gps Go's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Gps Go's, firm in the HBR case study GPS-To-Go Takes on Garmin needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GPS-To-Go Takes on Garmin, in the dynamic environment Gps Go's has struggled to respond to the nimble upstart competition. Gps Go's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Gps Go's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Gps Go's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High cash cycle compare to competitors
Gps Go's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Gps Go's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study GPS-To-Go Takes on Garmin has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Gps Go's 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Gps Go's supply chain. Even after few cautionary changes mentioned in the HBR case study - GPS-To-Go Takes on Garmin, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gps Go's vulnerable to further global disruptions in South East Asia.
Opportunities GPS-To-Go Takes on Garmin | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study GPS-To-Go Takes on Garmin are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Gps Go's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Gps Go's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GPS-To-Go Takes on Garmin suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Gps Go's can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Gps Go's to increase its market reach. Gps Go's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gps Go's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Gps Go's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study GPS-To-Go Takes on Garmin - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gps Go's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Gps Go's has opened avenues for new revenue streams for the organization in the industry. This can help Gps Go's to build a more holistic ecosystem as suggested in the GPS-To-Go Takes on Garmin case study. Gps Go's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Gps Go's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Gps Go's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gps Go's is facing challenges because of the dominance of functional experts in the organization. GPS-To-Go Takes on Garmin case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Gps Go's in the consumer business. Now Gps Go's can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Gps Go's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Leveraging digital technologies
– Gps Go's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats GPS-To-Go Takes on Garmin External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GPS-To-Go Takes on Garmin are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Gps Go's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Gps Go's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gps Go's in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Gps Go's has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Gps Go's needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study GPS-To-Go Takes on Garmin, Gps Go's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
High dependence on third party suppliers
– Gps Go's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gps Go's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study GPS-To-Go Takes on Garmin .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Gps Go's business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Gps Go's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Gps Go's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Gps Go's is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of GPS-To-Go Takes on Garmin Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study GPS-To-Go Takes on Garmin needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study GPS-To-Go Takes on Garmin is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study GPS-To-Go Takes on Garmin is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of GPS-To-Go Takes on Garmin is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Gps Go's needs to make to build a sustainable competitive advantage.