Case Study 2 - Somaya Medhat

Shifting Direction
As the global leader in satellite navigation equipment, Garmin Ltd.

recently hit a milestone number. It has sold more than 100 million
of its products to customers— from motorists to runners to
geocaches and more—who depend on the company’s equipment to
“help show them the way.” Despite this milestone, the company’s
core business is in decline due to changing circumstances.51 In
response, managers at Garmin, the biggest maker of personal
navigation devices, are shifting direction. Many of you probably
have a dashboard-mounted navigation device in your car, and
chances are it might be a Garmin. However, a number of cars now
have “dashboard command centers which combine smartphone
docking stations with navigation systems.” Sales of Garmin
devices have declined as consumers increasingly use their
smartphones for directions and maps. However, have you ever
tried to use your smartphone navigation system while holding a
phone to look at its display? It’s dangerous to hold a phone and
steer. Also, GPS apps can “crash” if multiple apps are running.
That’s why Olathe, the Kansas-based company, is taking explicitly
aggressive actions to team up with automakers to embed its GPS
systems in car dashboards. Right now, its biggest in-dash contract
is with Chrysler, and its Uconnect dashboard system is found in
several models of Jeep, Dodge, and Chrysler vehicles. Garmin also
is working with Honda and Toyota for dashboard systems in the
Asian market. Despite these new market shifts, customers have
gotten used to the GPS devices, and they’ve become an essential
part of their lives. That’s why Garmin’s executive team still
believes there’s a market for dedicated navigation systems. It’s
trying to breathe
some life into the product with new features, better designs, and
more value for the consumer’s money. For instance, some of the
new features include faster searching for addresses or points of
interest, voice-activated navigation, and highlighting exit services
such as gas stations and restaurants.
DISCUSSION QUESTIONS
1. What role do you think goals would play in planning the

change in direction for the company? List some goals you
think might be important. (Make sure these goals have
the characteristics of well-written goals.)
To plan the change in direction for the company, Garmin has to

understand the goals they need to achieve in order to focus on
making plans accordingly, without clear and detailed goals the
company has no defined purpose.
Important goals for Garmin:

1- Increasing revenue and growing shareholder value by 10%
by the end of 2024.
2- Maintaining profitability by reducing the cost by 12% by
2024.
3- Provide the best customer experience in the market.
4- Team up with new automakers and tech companies.
5- Come up with a more advanced product with new features,
better designs, and more value for the consumer’s money.
6- Working with more brands of cars on their dashboard
systems.
7- Become the market leader, especially in the Asian market.
2. What types of plans would be needed in an industry such
as this one? (For instance, long-term plans or short-term
plans, or both?) Explain why you think these plans would
be important.
1- Short term plans:
● SWOT analysis for the company’s strength, weakness,
opportunities and threats.
● Analyzing the competitors (ex, Olathe) by gathering
background information, profiling their target
customer and analyzing their strengths and
weaknesses.
● Conducting a research on the customers’ needs and
expectations (online questionnaire).
● Continuously working with the research and
development team on new ideas to fix the problems of
the current product and make changes to their devices
that will encourage consumers to buy it over using the
built in option on their phones.
● Developing an advertising campaign to raise awareness
on safe driving.
● Develop strong social media campaigns to increase the
brand awareness of Garmin as the global leader in
satellite navigation equipment.
2-Long term plans:

● Launch a new product with new features to satisfy the
customer needs.
● Invade new markets such as the European market by
working with companies such as Audi and Mercedes.
3. What contingency factors might affect the planning

Garmin executives have to do? How might those
contingency factors affect the planning?
● The market environment for the technology sector is
dynamic. This level of environmental uncertainty will have a
big impact on Garmin's planning strategy and its capacity to
fulfill future promises. Planning must start at the highest
level of the organization and be both tactical and strategic.
● Another crucial planning factor is the duration of upcoming
obligations. Clear time frames must be established for
contracts with partners and the introduction of new products,
and any time a time deadline is missed, corrective actions
must be taken.
4. What planning challenges do you think Garmin
executives face with continuing to be the global market
leader? How should they cope with those challenges?
Garmin will have ongoing challenges in maintaining its leadership
position in the global market. such as the problem of keeping up
with the rapid development of technology and competition of
other big companies.
They must continually track the market in which they compete in

order to recognize new trends, predict future problems, and stay
up-to-date on the competitors. Garmin must also constantly
evaluate its own products, costs, and features; in some cases, major
changes to the brand will be required.

Case Study 2 - Somaya Medhat

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Case Study 2 - Somaya Medhat

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Shifting Direction

As the global leader in satellite navigation equipment, Garmin Ltd.

1. What role do you think goals would play in planning the

To plan the change in direction for the company, Garmin has to

Important goals for Garmin:

2-Long term plans:

3. What contingency factors might affect the planning

They must continually track the market in which they compete in

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