PALM, INC.: STRATEGY ANALYSIS

The basis for Palm, Inc.'s current strategy is that handheld wireless computers will continue to grow in popularity to the point that universal usage will prevail. Palm built a commanding market share position in handheld organizers; however, this market strength is weakening in late-2001.

Palm, Inc. markets a range of handheld organizers, several with wireless communication capabilities. The range of these products spans both capabilities and price. Higher priced Palm organizers also have color displays. The highest priced Palm model (Palm VII) includes wireless Internet capability. Palm, Inc. developed its own Internet portal (MyPalm) to provide Internet access for the Internet-capable Palm models (Hoover's Online, 2001). Palm announced that it will maintain the MyPalm portal to provide Internet access for Palm handheld, Internet-capable devices, but that the portal will cease as of 10 January 2002 to provide Internet access for personal calendars and address books (Fried, 2001)

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ently is prepared. This WO strategy could be risk for Palm if too much invested capital is required. WO strategies allow a firm to take advantages of opportunities as a means of reversing a weakness. Palm, however, must act with care in this situation. ST (Strength-Threat) Strategies Palm stands accused in late-2001 with producing handheld devices that are not only incompatible with personal computer, but contain an electrical fault that disables personal computers to which they are connected. Some users are preparing lawsuits against Palm, Inc. (Johnston, 2001). Palm is in a strong position in a technological context. Therefore, Palm needs to use this strength to neutralize this threat. ST strategies allow a company to use its strengths to neutralize threats. This strategy is what Palm needs with respect to the charge of an electrical fault in the companies handheld devices. WT (Weakness-Threat) Strategies Industry sales for personal digital assistants (PDAs), or handheld organizers, have declined sharply over the past three months. At the same time, Palm's sales have decline just as sharply (Evers, 2001). Palm also has introduced three new low-end handheld devices for entry-level users. The idea is to spur sales
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Approximate Word count = 1886
Approximate Pages = 8 (250 words per page)

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