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Palm Inc Essay

1262 words - 6 pages

The following is a SWOT analysis of the Palm Inc. company based on From handhelds to smart phones – the pioneers of Palm Inc. (2011), Richard Ivey School of Business foundation. The strengths, weaknesses, opportunities and threats that this company is facing will be outlined to identify the positive and negative factors influencing the inside and the outside of the company. This analysis will help to develop an awareness of the factors that may affect strategic planning and decision making of Palm Inc.


1. Years of experience
For Palm, years of experience at software development, marketing and device development are really a great strength. Palm start in 1992, 18 years ...view middle of the document...

At the same time, other competitors did a great job in innovation. Palm gradually becomes a small and marginalized player in the industry. On the other hand, when Palm created the new OS and the new smart phone, the application didn’t come up with the new things. When customer spends their money buying Palm’s phone, they unfortunately can’t get the best treatment as compare to Apple’s phone. The innovation is the basic power of the company. But Palm doesn’t have the strong impetus. Palm needs to raise their brand name by innovation.

2. Short of capital
• Palm spent too cash to develop the new OS and new smart phone. And the marketing capitalization is much short than the competitor. This situation makes Palm can’t balance the money within each department. So the whole company can’t run efficiently. For example, Palm can’t self-finance marketing campaigns and in-store training of sale staff.

3. Low marketing level
• Palm can’t bring up the effective marketing strategy. The price of a new phone even be expensive than iphone. The competitiveness is tiny than other brands. After failing to seizing the market with new phone, Palm makes a “attractive” product bundle on its phone. It turns out to be stressful to Palm. And it still can’t face to other brand’s impact.

4. Failure of negotiation ability
• Shelve speed of new product is an important factor. Nevertheless Palm’s new product was delayed because of certification issues with the carrier. At the same time, Palm has a conflict with the dealer. Palm needs to spend more money on sale.


1. Entering other market segments by making use of Palm’s know how:
• Start to develop commercial applications for other smartphone operating systems.

• Fill smaller niches in the smartphone market with respect to general environment forces:

o Sociocultural and Political and Legal Forces: Smartphone operating systems with high data regulations for users with sensitive data. As the fear of theft of personal information’s or sensitive data is rising in certain groups of society (e.g. decision makers like politicians and managers).

o Demographic Forces: Senior Friendly Smartphones for aging societies with health or special care features. Remote GPS tracking, monitoring and streaming of health parameters to doctors and relatives.

o Global Forces: Providing an extreme low-cost operating system which is running a cheap hardware for the growing low income population of the world. (Reverse Innovation)

• Offering customizations of other operating systems (mainly Android) as a paid service, which may be used by hardware manufacturers like Samsung or HTC.

2. Limiting their development and costs by encouraging the open source development community to develop applications.

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