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Garmin Analysis

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Garmin Analysis | Following the Business Decision | By.ENRIQUE KELSO.FINANCIAL

Garmin is a producer of GPS technology, based in Taiwan, but with major offices in Switzerland and incorporation in the Cayman Islands (MSN Moneycentral, 2013). The company enjoyed strong growth for much of the 2000s, only to see that growth deteriorate when its core technology, GPS, was installed in smartphones. Prior to that point, Garmin sold its global positioning systems as separate units, sometimes for hundreds of dollars. The obsolescence of its core computer product had many observers questioning the long-term viability of the company (Seeking Alpha, 2009; Ganapati, 2008; Moritz, 2008). The company continues to operate today, having found some new uses for its technology, but Garmin today is a smaller firm than it once was. Nevertheless, it has remained profitable and can be reasonably evaluated on the basis of its potential for future growth.
Garmin employs around 9800 workers . Since losing much of its GPS business, with the remaining retail applications being to rental car companies, Garmin has sought to re-invent itself. The company markets global positioning technology to the airline industry, automobile manufacturers, the shipping industry, traffic management systems and it still has a handful of retail products for those customers who do not yet have a smartphone. The non-aviation products are marketed through retail channels including, Best Buy, Costco, Target and Wal-Mart (MSN Moneycentral, 2013). Right now, the airline industry is Garmin's biggest customer. The company has also shifted focus away from the US market, and is finding that there are still growth opportunities in other markets (Plaehn, 2011). By refocusing Garmin, the company has hoped to stem the sales downturn, and for the most part Garmin feels that it...

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