Hp and Palm

Essay Instructions:

XCG THE EXCELLENT CONSULTING GROUP COMMUNICATION FROM S.M. ART EPANCE: Welcome aboard this project. HP and Palm are expecting us to provide them with top notch advice on how to integrate Palm into HP. I will be working on analyzing HP and you will be working on analyzing Palm. I expect you to do excellent work; afterall, that is the name of our consulting firm. First, you need to do a strategic analysis of Palm Co. The execs are looking for us to give them an independent, objective view of Palm's current strategic position. They want to get the full nine-yards of Palm's mission, vision, and values. The want to identify its current set of strategic goals. They want an assessment of the competition and the competitive environment. And they want to see the opportunities and threats it is facing, and get a general idea of its strengths and weaknesses. Palm and HP want to know if we think they should make any strategic changes or stay with the status quo. You need to put this into a recommendation and justify your reasoning. I have attached a Word doc with an outline of the contents of the report - click here. Case Expectations: * You need to do diligent research on Palm, Inc. I have included links to various websites about the purchase by HP, news on Palm, and Palm's website. I have also included a link to their 2009 10K Report. * You need to do additional research to find information on competition and general trends for opportunities and threats. For the competitive analysis, you need to identify three of the top competitive companies and their best selling devices. * The report should follow closely the outline that I have given you. You need to be thorough and complete. The final section is the most important section. I expect you to use good logic and argumentation skills to make your case. The report should be 5 to seven pages. Links to Internet pages and doc uments: Article: HP to Acquire Palm for $1.2 Billion Article: BNET: Company News & Executive Profiles - PALM Article: HP bought Palm after a five-company bidding war Palm's website: www(dot)palm(dot)com Palm's investor site: http://investor(dot)palm(dot)com Palm's 10K (Annual Report) for 2009 (pdf file): Click Here Use headings and subheadings throughout the paper for easy reading, and recognition of flow of paper

Essay Sample Content Preview:

STRATEGIC REVIEW: HP AND PALM
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Grade Course:
Tutor’s Name:
(05 February 2011)
Strategic Review: Hp and Palm
Current situation
Palm, Inc. is a company that makes powerful mobile phone products that are better, faster and more useful. Since its inception in January 1992, the firm has made personal digital assistants (PDAs) so popular. It has sold more than 7,000,000 pieces of its products. Globally, it sells products in more than 30 nations. The latest fiscal report in the last quarter dated Feb. 26, 2010, showed a gross profit of $ 47 million. On a GAAP basis, the gross margin was 13.4 % and total revenues in the third quarter were $349.9 million (GlobalData, 2011). The company has been underperforming of late but its potential remains high. The sales department is working hard to improve sales. This has begun bearing fruits. Palm chairperson and CEO, Jon Rubinstein said that they have developed a platform in webOS that is going to be advantageous as the company moves forward. Palm exported 960,000 units of Smartphone during the quarter.
Current mission and vision
Each department at Palm has specific mission and vision. Each one is required to implement the specific policies.
Current Strategy
The way forward is licensing strategy. The company licensed its platform for handheld devices to other companies like Nokia, Sony, HandEra and many more. Though these companies competed with Palm, the overall outcome is that they strengthened customers demand fir Palm’s products. Selling of products through third parties avails Palms products to greater market. Palm, Inc. developed the Palm operating system also known as palm OS. Palm OS introduction to the public was on January 8, 2009. It was produced together with Palm Pre at the Consumer Electronics Show. The two phones hit shops on June 6, the same year. The firm plans to cause rapid innovation in the mobile computing business (Hitt Et al. 2009). It is laying foundations for a new operating system. It will preview the OS(R) 5 operating system. Apart from this, the subsidiary has announced a new name: PalmSource, Inc. palmsource remains dedicated to existing base of developers and users of its products. Palmsource will organize an expo, which allows business professionals and students to see its products. The products will include Palm powered handhelds, Smartphones and communicators.
Goals and objectives
The goals of Palm include developing the products briefs and management of product life cycle from the initial stages of project. Meeting cost targets. Incorporate external stakeholders in creating a product line. Simplicity, wearability and ability to stay connected are the simple principles that make products succeed in the market.
Major Strengths of company that are basis of G&O
Palm, Inc. Lead the way in the field of mobile and wireless web. The study conducted by IDC. (December 2000) showed that Palm is a top provider of handheld computers and internet solutions. Palm OS has the advantage of offering thousands of application solutions. The company’s stock are traded at NASDAQ national market. Palm Inc.’s IPO, there were speculations that caused the shares to raise up to $165 each. The shares closed at $ 95 giving palm a valuation of $53 billion. Its products, pre and pixi wireless devices are sold directly and through partnership through distributers and retailers. Most of the sales are in the US therefore; the company does not incur huge cost of export. Live moves fast and the company create products that help people on the move to stay connected. Palm’s products enable a person to stay a step a head by connecting to everything that is important. Products like Palm Pre, Palm Pixi run Palm webOS that connects people to the best of the net. Since the web connects several aspects of live. Palm has brought the web to a mobile platform. The company is shaping the future by using creative technology. Palm control about 70% of the organizer market. It has over 70,000 third party developers. In January 1999, they were only 3000. This shows that the number of developers rose significantly. During the last quarter of 1999/2000, revenues rose steeply and doubled those of the previous years. Suppliers of various devices like display screen and memory could not keep up with the great demand (King, 2010). Palmsource Inc. is the most successful OS for mobile devices. It forms the basis of most handheld devices sold internationally. In addition, Strength at Palm is the management team.
Major Weaknesses that are planned for improvement or to compensation
On GAAP basis, net loss credited to shareholders during the last quarter dated Feb. 26, 2010 is $22 million. The company should analyze its operations in order to identify the divisions that are creating losses and divested them. Palm Inc. should improve the quality of their products. This will avert situations like the (Johnston, 2001) when customers were organizing a lawsuit against the company for developing handheld devices that are incompatible with PCs.
Competitive Analysis
The major competitors are Nokia, research in motion RIM and Apple Inc. Nokia is developing OS for wireless internet devices. Nokia is cooperating with companies like Ericsson,...

Updated on January 26, 2024

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