Palm

Palm 2005: Bach to the Future

Summary

Palm, Inc. is a leading provider of mobile computing and communication solutions.

Palm currently offers devices easy to use, for end users in a four different lines of mobile computing devices: Zire TM, Tingsten TM, Lifedrive TM and Treo TM. The products are differentiated in term of price, functionality and software application.

Palm holds the leading worldwide market share in handheld computers.

Competition & Strategies:

The competition in the mobile device is intense and characterized by rapid change and complex technology. Mobile players are becoming Palm’s competitors and network effects can hurt the company’s client base. The handheld industry is at crossroads with convergence of handheld computing and mobile connected device.

Under this context the smartphone and handheld internet connection market is emerging as a big opportunity and since there is not yet a dominant player and no standards were set Palm could penetrate this market and become an important supplier.

The company is considering four different strategies in order to compete the market:

1. Become a Global manufacture of mobile information devices

2. To go after research on motion (RIMM), and focus on building or buying its own wireless email service.

3. To pursue an Apple like strategy, focusing on mobile communication space

4. Combine with a large mobile phone manufacture in need of compelling Smartphone line

The choice regarding the optimum strategy among the mentioned options was based on an internal and external advantages and disadvantages analyzes of the company. Palm is well recognized in the enterprise world and relies on a very strong brand and product awareness. Its huge handheld installed base, together with a strong integration between hardware and different softwares including palms became the company’s advantage front competitors.

In the other hand palm is not yet a big player on the mobile market and face a large...