Garmin GPS Tracker— Company Analysis

Garmin International — Background

GPS navigation possesses excellent importance for defence, airlines and sportspeople. The USA’s defence department began to develop the global positioning system in the 1970s (Szot et al., 2020, p. 4). There was spending around 15 billion dollars to put two dozen satellites in orbit. The principal aim was to establish the GPS receiver set to analyze the coordinates and compare the signal with other satellites. The first commercially available technology for GPS units was expensive and cost around ten thousand dollars. Garmin Corporation was inaugurated in 1990 in Taiwan by two electrical engineers, Dr Min Kao and Gary Burrell.

Garmin ltd. is a global leader in GPS positioning systems to provide navigation products. It specializes in providing boats, aircraft, and people who use the wrist to watch for athletes, hikers, and automobile drivers.

The Company sold around 5 million units in the past years. The product has a lineup of 250 different items through 2,500 dealers or distributors (Zainol Abidin 2022, p. 11). Similarly, Garmin ltd. is to have partners all around the globe with 100 countries. The parent country is registered in the Cayman Islands, with manufacturing and sales operations held in the United States and Taiwan. On the other side, the marketing office is present in the United Kingdom.

Analysis — sales platform

The sales of Garmin are increasing with every passing year. It offers garmin gps to customers all around the globe in around 100 countries (Mika 2014, p. 6). Furthermore, therefore, there are just different consumers, such as aircraft and the Sportsperson, who use the wristwatches. Thus, the people who need to have GPS navigation go for the purchase from Garmin, which increases the Company’s sales volume.

There is a segment of consumers or the dealer network based on around 2,500 dealers to sell the product for the sales platform. So it includes Recreation, Marine, and Automotive applications. Garmin product sales are primarily with sportspeople or to have with the aircraft or the industries that use the automotive or automobiles to include the GPS navigation.

Throughout the year, there is a sale. However, generally, in November, the prices go down because of the lower purchasing power of the people. Every year, companies decrease the costs for the consumers, maintain the business activities or operations, or the return.

However, the auction is not allowed for the current government products on an online platform like Amazon, eBay, etc. On the other side, third parties are selling the product through social media. There is awareness among the people regarding Garmin due to the advertisement or marketing of the Company. Similarly, there is a website presence that possesses the different blogs and information available for the Industries or companies or the Sportsperson who wishes to buy the Garmin products.

Recommendations

· The Company is going well in its operation. So it is to deal with the customers and attract most companies who manufacture automobiles aircraft or the Sportsperson. Nevertheless, there is a marketing term of getting the popularity on the other side. The Company is selling the highly demanded product of GPS navigation, around the globe, for around 100 countries. Therefore if there is a better strategy, they can attract most consumers worldwide. Today, with social media, or advanced technology, every Company or consumer finds or seeks something they can trust.

Thus, to build trust, the Garmin GPS needs to make the marketing strategy, where they can make the content, to attract the consumers that can be any company or Sportsperson to use the navigation products. To do so, a better marketing campaign should be there to increase the sales volume. Furthermore, be more open on the social media to be available and where every person can see the marketing, whether they buy the product. However, they get aware of the availability of GPS navigation products for their need.

Two characteristics of Modern Selling

Social Selling

The two major selling characteristics for Garmin ltd. are social selling, that there are different platforms available online over the website. The common is going towards the social selling to promote the product through the various media such as websites. It is to go for the network to attract the most consumers.

Similarly, social selling increases awareness among people around the globe. The customers of the Company are related to the aircraft, and the Sportsperson who needs the GPS navigation watch is to have an accurate location. Therefore, the use of social media gives the Company the strength to go for a higher volume of sales among the people.

Garmin ltd. has a website where there is information available for the consumers. The website contains products, blogs and reviews. It is to get the confidence of the people and companies to be the first choice concerning navigation products (Zhang, Shi, & Xu, 2015, p. 8).

A relationship builder

The other major characteristic of modern selling adopted by the Company is the Relationship Builder. It works as the relationship Builder, which is again through the internet and social media. There is a delivery of the product throughout the world across the 100 countries to establish a better relationship with the customer. Eventually, it raises the confidence of the customers and the marketing of the customers among the users who use social media on the other side.

A GPS navigation system is widely used in aircraft and boats (Pinto & Yagnik, 2017). Similarly, Sportsperson uses the navigation to see their location and perform accordingly. So, the quality of GPS navigation for the Company allows the Company to be more reputable among the consumers.

Assessment of financial Performance

The total revenue of the Company is 4,187 million dollars in the year 2021, which shows the improved performance of the Company with every passing year, even after the global crisis (“Position, Performance and rating of Garmin Ltd. (GRMN)”, 2022). On the other side, Garmin Company possesses 7,031 dollar million assets, which ranks the Company at the 31st position among the other 257 companies in a similar industry (“Position, Performance and rating of Garmin Ltd. (GRMN)”, 2022). It shows that the Company’s performance is going well in the crisis and moving towards a better position to sustain itself in the market and be the better choice for the consumers.

The Company’s financial performance can be analyzed or assessed, particularly from the ratios. The Company is holding in the current year. The liquidity ratio of the Company shows the positive figures of 3.15, which shows that the current balance of the Company is conducting the high (“Position, Performance and rating of Garmin Ltd. (GRMN)”, 2022). The Company’s position is stronger enough to meet the short-term obligations or liabilities. Similarly, the quick ratio stands at 2.32 again, showing the Company’s stronger position where the Company can meet the short-term obligations while having the quick assets to sell in the market whenever the Company is in need.

Similarly, the cash ratio stands at 1.59, which mentions that the Company possesses the adequate cash to have the urgent requirement or need of money in hand (“Position, Performance and rating of Garmin Ltd. (GRMN)”, 2022). On the other side, the Profitability ratio shows 23.7%, with a 1.5 increase in profitability per year. In this crisis, worldwide data shows that the Company is selling the product successfully. On the other side, return on Equity, after text shows 19.2, an increase having profound profitability and return while investing on the different assets.

For the receivable turnovers, there is a negative sign of 68, which shows that it takes 68 days to get receivables from the sources. Therefore as a whole, the Performance of the Company is going well in obtaining, and a better position such as a dividend payout ratio is 0.45 (“Position, Performance and rating of Garmin Ltd. (GRMN)”, 2022). It again shows that the Company is mentioning that a better position among the stakeholders and performing to sustain in the market will be able to compete.

Assessment of commercial Performance

For the commercial Performance, Garmin limited is present online over social media. It is current through the marketing ads so that the consumers can purchase the product. Similarly, it is available on the popular website they own. The potential consumers can buy the product from the public online website. There is order placement and customer services to get information. Therefore, the Company’s commercial performance is more substantial in a firm to be the competitors or to be the priority of the consumers to rely on the GPS Navigation product.

However, there is no high number of competitors (Omrani, Shiekhdavoodi, & Shomeili, 2013). Nevertheless, there is a requirement to be among the consumers to choose the product. The commercial performance is well-established in terms of timely response and product description availability over the website of Garmin Ltd. It encourages the stakeholders or the companies to reach Garmin products.

Conclusion

In conclusion, there is a greater importance for the Company to sell GPS navigation products all around the globe. The Company has been selling the product since its Inception in around 100 countries. Therefore, there are 2,500 different dealers or distributors appraising to increase sales volume. Similarly, the sales promotion is done by using social media. It follows the two characteristics of modern selling, such as social selling and the Relationship Builder — the companies building the relationship while giving a better product that is reliable for the financial performance.

Garmin ltd. is going well to show a positive increase in revenue and assets. Similarly, the ratios of the Company are also going well to increase the trust of the stakeholders as well. Likewise, commercial performance is better where the Company possesses the website to deliver the services and is available 24/7 for the consumers. It is recommended that the Company goes for a better marketing strategy to increase the sales volume by using a better marketing campaign.

References

Dabove, P., & Manzino, A. M. (2014, May). GPS mass-market receivers for precise farming. In Proceedings of IEEE/ION PLANS 2014 (pp. 472–477).

Mihaylov, R. (2014). TESTING ACCURACY THE GPS DEVICES ETrex LEGEND HCX AND ETreX 30 OF THE GARMIN MANUFACTURER. Journal of Industrial Design & Engineering Graphics, 9.

Mika, M. (2014). Examination of the Capabilities of Some Models of Hand GPS Receivers for Purposes of Creation of Thematic Maps. Geomatics and Environmental Engineering, 8(2).

Omrani, A., Shiekhdavoodi, M. J., & Shomeili, M. (2013). Determine Sugarcane harvester field efficiency using global positioning system (GPS) data. Elixir International Journal, 56, 13260–63.

Pinto, M. B., & Yagnik, A. (2017). Fit for life: A content analysis of fitness tracker brands use of Facebook in social media marketing. Journal of Brand Management, 24(1), 49–67.

Position, performance and rating of Garmin Ltd. (GRMN). (2022). Retrieved 1 March 2022, from https://www.readyratios.com/sec/GRMN_garmin-ltd

Price, K., Bird, S. R., Lythgo, N., Raj, I. S., Wong, J. Y., & Lynch, C. (2017). Validation of the Fitbit One, Garmin Vivofit and Jawbone UP activity tracker in estimation of energy expenditure during treadmill walking and running. Journal of medical engineering & technology, 41(3), 208–215.

Szot, T., Specht, C., Dabrowski, P. S., & Specht, M. (2021). Comparative analysis of positioning accuracy of Garmin Forerunner wearable GNSS receivers in dynamic testing. Measurement, 183, 109846.

Zainol Abidin, M. N. A. (2022). Technology Entrepreneurship Project (ENT 600): Fitbit.

Zhang, P. C., Shi, Z. K., & Xu, M. (2005, August). Design and implementation of vehicle monitoring system based on GPRS. In 2005 International Conference on Machine Learning and Cybernetics (Vol. 6, pp. 3574–3578). IEEE.