Example research essay topic: Matter Of Time Remain Competitive - 1,605 words

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Global Strategic Management Handspring was founded 1998 by three former Palm Computing executives: Jeff Hawkins, Donna Dubinsky and Ed Colligan. These three individuals have an extensive experience in the field of designing PDAs (Personal Digital Assistant) because they were the key players in Palm Corporation, being responsible for designing and marketing its main line product Palm Pilot. There was a continually growing demand for such devices in 1992 1998, yet with cellular phones becoming more sophisticated, such demand isnt as great as it used to be at the time when Palm Pilot was launched onto the market. Cell phones now have the most important integrated feature they provide access to Internet. As recent studies show, 68 % of customers are only concerned whether theyre going to be able to get online with the help of mobile electronic device. Everything else comes secondary.

Since the founding of Handspring Inc. , its marketing strategy was primarily focused on PDAs as its main line products. The market dynamics at the time seemed to confirm Hawkings strategic commercial approach. After Handspring became public company, its stock went up from $ 25 to $ 95 per share in 2000, within a matter of few months. This prompted company to press ahead with its new product Treo PDA. At the time of its launch onto the market in 2001, it seemed that this device might be able to enjoy an enormous commercial success. Yet, it proved far from being the case.

Samsung, Nokia, Sony, Sharp and Apple have introduced their own versions of PDA around the same time. This had eroded Handsprings margins way below its anticipated level. In 2001 companys market share was 40 %, but by 2001 is has shrunk to 25 %. It appears that Jeff Hawkings simply paid too much attention to development of PDAs as he firmly believed that it would eventually bring his company big dividends in the long run.

He even anticipated the second computers revolution. He thought that it was only the matter of time before continuous development of PDAs would allow them to be considered as fully integrated computers. Once he said: My focus today, 100 percent, is making Handspring successful, making handheld computing successful. I still view the handheld computing industry as very embryonic Its like 1982 of the PC world. (Hawkings) In my view, such statement shows the lack of understanding of commercial philosophy on the part of Handsprings Chairman and Chief Product Officer. As practice shows, the reasons that underline a success of every commercial enterprise, are unique. The comparisons are better drawn as aftermath and not on the initial stages of following other companys success.

PDAs industry cannot be considered as separate one. The example of Palm, which is still very competitive, while remaining the part of US Robotics, effectively proves it. Handspring could only enjoy full operational independence if it was in possession of unique technology patent. If there wont be any groundbreaking discoveries done in the field of computing, on the part of this company, it doesnt have much of an option but to follow mainstream. Implementation From the case it appears that Handsprings main objective at this time is wining market with its Treo PDA. There are main 6 competitors with products that are similar to Treo.

This leaves the company only two ways to beat the competition: lowering retail price for Treo or pursuing an aggressive advertising strategy. These two approaches can be combined but, in my opinion, the advertising wont result in substantial increase of Treo's sales. Person who wants to buy PDA usually has very good idea what hes after, prior to the purchase. Lowering retail price can be accomplished quite painlessly, by relocating Handsprings production lines to any Third World county with an abundance of cheap labor. As a matter of fact, most of companys competitors have done it long ago and thats what enabled them to drastically increase its sales. The production facility of Handspring are still located in U.

S. mainland, which is cant be thought of as anything else, but a sign of shortsightedness on the part of Handsprings managers. Handspring will have to adjust its marketing strategy if it wants to remain competitive in the future. The next line of its products must be more of a cell phones than PDAs, although it might include many PDAs features. This will enable company to lower price for such product and to get inline with what seems to be todays trend. Of course, Handspring doesnt have the resources of its bigger competitors to afford taking risks.

Yet, sometimes, doing this is only the thing that might enable company to survive. Handspring might also have to consider targeting specific customers. If this approach is taken, low sales will be compensated by products high price. It will also enable Handspring personnel to have more scientific freedom when it comes to designing a new product. This might prove to be beneficial in the long run Handspring would also benefit a lot if it pursued partnership with other companies that have a lot of experience in mobile phones marketing.

This would allow it to be on equal terms with its competitors that were being active on mobile market for long time. Such partnership has all the chances to be mutually beneficial, since Handspring expertise in producing PDA is also very valuable. In order to remain competitive, Handspring will have to maintain the high level of professionalism among its employees. So far, companys engineers were able to enjoy a certain degree of academic freedom, which caused Handspring to be referred to as very innovative company. This is the Handsprings biggest advantage and it must be maintained at any cost. Performance Evaluation and Control Being a commercial enterprise, Handsprings performance needs to be evaluated in economical terms.

So far we witness a negative tendency in companys performance. In 2001 its total assets were estimated to be $ 253. 235, yet by the year 2002 the number went down to $ 216. 175. This is clear indication that company is losing the battle. If such trend is allowed to continue, Handspring might be pushed out of market altogether. The substantial decrease of companys investments in long-term projects, from 80. 237 in 2001 to 50. 644 in 2002 will have a direct impact on Handsprings stock situation.

This tendency indicates company being unstable, which is not good for attracting potential investors. Deploying aggressive accounting practices is very important. In order to attract new investments, company has to appear being worthy more than it really is. From the case it appears that Handsprings operating on stock market is being in the state of neglecting on the part of its managers. Its dynamics are only mentioned once in the article. The long-term investments need to be getting increased by at least 5 % every year, even if corporation would never directly benefit from it.

Being a public company will require Handspring to pay as much attention to the situation on the stock market as it pays for designing the new line of products. Reconsidering its marketing strategy will require a financial restructuring on the part of company. It goes without saying that there are going to be initial losses at the beginning. Yet, the biggest loss with the case of Handspring will be losing its reputation of innovative company. Digital market requires companies to make gutsy decisions every once in a while, jut like any other. It appears that Handspring is quite capable of reconsidering its marketing philosophy.

Its main disadvantage is that its much smaller than electronic giants like Nokia, Sony or Samsung. But at the same time it allows it a much greater flexibility. In order to succeed, Handspring executives have to make it clear for themselves whether they stick to their 6 years old concept of PDA becoming the top selling item on the computer market, or accept the fact that this anticipation proved to be failure and adapt to todays reality. I think that there are no great obstacles on the way on implementing this plan. Important is to start making changes before competition has gone too far ahead. The market dynamics indicate that there is a clear trend among producers to combine PDA and cell phone features into one single device.

Handspring might even have an upper hand if it chooses to readjust the line of its products according to the market demand. Handspring Inc. doesnt have any supporting programs implemented to enhance its market competitiveness at this time. It is quite explainable, as company has only been recently founded.

Yet, is Handspring survives competition in immediate future, its executives will have to consider its further expansion. In modern Global Economy it is only the matter of time before smaller commercial enterprises are going to be acquired by larger companies. If Handspring is to maintain its operational independence, it will have to start expanding. Companys accountability is best described as adequate. It means that new commercial undertakings wont be at risk of exceeding predicted financial balance.

This, in its turn, would allow Handspring managers to come up with very accurate financial forecasts when itll come to it restructuring. The evaluation and control are very important elements of every effective management style. Thats why Handsprings bosses have to make sure that the analysis of companys operational activity is being done on regular basis. Only this will guarantees that companys commercial efficiency will be maintained on appropriate level. Handspring Inc.

reputation is one of the crucial elements of its success Bibliography: Mulkern, Lisa-Marie and Hoffman, Alan Handspring Inc. , 2002 Case 11. Inter-Hemispheric Education Recourse. 2002

Research essay sample on Matter Of Time Remain Competitive