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INTRODUCTION
Palm was founded in 1992 and has been synonymously known for its personal digital assistants. ... The PalmPilots are sold in over 35 countries and by June of 2000 Palm was the leading global provider of handheld computers, owning 80% of the overall market share. By controlling such a large market share, Palm’s revenue grew from 272 million in 1998 to 871 million in 2003 (Exhibit 1). All these reasons behind Palm’s success and failure can be discussed and analyzed through factors in the General Environment, Industry Environment, Internal Capabilities as well as their Core Competencies and Competitive Advantages.
GENERAL ENVIRONMENT
Demographics
Palm is the world’s leading producer of the hand-held computer, popularly known as the PalmPilot. Palm’s profitability in this techno-industry is vastly due to their ability to successfully target the consumer market. Palm has high hopes in the near future of selling more of their products to corporations and business professionals as opposed to the consumer market. ... Palm plans to increase their market by incorporating more sales through corporations and business professionals and at the same time attain more female users (Aubourg).
Economic
The drop in Palm’s market share was attributed to the slowing of the economy, which caused a drop in the demand of Palm’s overall product offering. An example of how Palm was affected by the economy involves the tragic event on September 11th. This event caused a slowdown in the economy, leading consumers to be more conscious when making large purchases. ... Another event in the economy that affected this industry was the “tech boom and bust” period. During the tech boom period Palm made a large sum of profit through the easy maneuvering of raising capital and debt. ... Hence, Palm had to pay back its debt during the boom period, which caused its equity value to decrease and profitability as a whole to drop dramatically (Exhibit 1).
Approximate Word count = 1514
Approximate Pages = 6.1
(250 words per page double spaced)
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