After struggling to find its footing amid drastic changes in the PND industry, Garmin charted a new course.
In the year between the all-time peak in November 2007 and November 2008, Garmin lost 87% of its value, and its main rival TomTom lost 94%. With the future of the PND industry in question, stock prices tumbled. But technological substitution smartphones with mapping capabilities along with falling prices, product convergence and the installation of dashboard navigation devices hit the company hard, especially in the automotive segment, its main market. NO PART OF THIS PUBLICATION MAY BE COPIED, STORED, TRANSMITTED, TRANSLATED, REPRODUCED OR DISTRIBUTED IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER.ΔΆ Introduction Garmin, a maker of personal navigation devices (PNDs), entered 2008 as the dominant firm in North America and in a leading position worldwide, with a higher market capitalization than General Motors. Copyright 2019 INSEAD COPIES MAY NOT BE MADE WITHOUT PERMISSION. To access INSEAD teaching materials, go to.
It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. 1 IN1592 Case Study Garmin / This case study was written by Metin Sengul, Associate Professor at Boston College, USA, Javier Gimeno, the Aon Dirk Verbeek Chaired Professor of International Risk and Strategic Management, and Jean Wee, Research Associate, both at INSEAD.