Garmin Swot Analysis

SWOT ANALYSIS1

STRENGTHS

• Core competency of Garmin is its ability to leverage GPS technologies and in-house manufacturing to create trendy but useful products for high growth markets.

• Provides efficient after sales services and superior customer support in areas like repairs, technical support and warranties services.

• Manufacturing their products in-house reduces mishaps and ensures quality products.

• The company owns its manufacturing facilities in Taiwan and receives tax incentives from the Taiwanese government slated to end in 2011. Cheap labor allows the company to keep its operating costs low.

• Garmin produces quality products that are ISO certified and further approved for use in aviation by the FAA.

WEAKNESSES

• GPS devices (inherent product weakness) are accurate to within 15 meters and certain atmospheric and weather factors may affect their accuracy. This has allowed competitors like NavSync Ltd and Ekahau Inc. to differentiate their products. These companies have developed Wi-Fi-based Real Time Location Systems that boost GPS accuracy and have created new products like NavTrac Wi-Fi-enabled GPS devices that support asset and inventory tracking from inside buildings to around the world.

• GPS satellites are monitored and controlled by the U.S Department of Defense, potentially limiting sales to certain clients (i.e. foreign governments).

• Endures a low sales cycle during the first half of the year versus the latter half of the year as consumers plan annual trips and marine activity.

• Owning manufacturing facilities and their related costs can be considered a weakness when sales volumes decline.

OPPORTUNITIES

• A brand awareness drive to increase visibility in the world, in Europe they sponsored the English Premier League football club at Middlesbrough and “Garmin-Slipstream” cycling team.

• The use of GPS technology within varying age groups is rising and there are increased opportunities to provide cutting-edge applications of...