Case Application-Week 5-Plans and goals Shifting direction at Garmin As the global leader in satellite positioning technology, Garmin Ltd recently hit a milestone number and sold more than 100 million of its products to customers - from motorists to runners to geocaches and more - who depend on the company's equipment to 'help show them the way'. For example, the Garmin Nuvi can be had for less than \$200. In Australia, Garmin's clients include retailers such as Harvey Norman, JB Hi-Fi, Rebel and BCF (Boating Camping Fishing). The company produces its consumer and more professional GPS receivers for a wide range of user segments, such as car navigation, fitness, outdoor, marine and aviation. Despite the 100 million milestone, the company's core business - car navigation systems - has now started to decline due to changing circumstances. A number of cars now have dashboard command centres which combine smartphone docking stations with navigation systems. Sales of Garmin devices have therefore declined as consumers are increasingly using their smartphones for directions and maps. But, have you ever tried to use your smartphone navigation system while holding a phone to look at its display? It is dangerous to steer while holding a phone. Also, GPS apps can 'crash' if multiple apps are running. The company is therefore taking explicitly aggressive actions to team up with automakers to embed its GPS systems in car dashboards. In United States, it has teamed up with Chrysler, and its dashboard systems can be found in several models of Jeep, Dodge and Chrysler vehicles. Garmin also is working with Honda, Toyota and Daimler/Mercedes for dashboard systems in the Asian, European and world markets. Despite these new market shifts, customers have gotten used to GPS devices and it has become an essential part of their lives. For this reason, Garmin's executive team believes there is still a market for dedicated navigation systems. It is trying to breathe some life into the product with new features, better design and more value for the consumer's money. For instance, some of the new features include faster searching for addresses or points of interest, voice-activated navigation, information about traffic flow, school zones, highlighting exit services such as petrol stations and restaurants, as well as links to personalised search engines for information about businesses and stores based on the user's preferences and history. However, at the same time as these changes are taking place, managers at Garmin are also shifting direction. While navigation systems for cars may be declining for Garmin, it is now finding new opportunities in the outdoor and fitness segments where it is constantly developing new wearable GPS navigation models such as its Vivo brand, which is second to its rival Fitbit in the fitness/activity tracker market. Another growing segment is the marine market, with boating and fishing enthusiasts keen to utilise GPS technology in their pursuits. Discussion questions 1. What role do you think goals would play in planning the change in direction for the company? List some goals you think might be important. 2. What types of plans would be needed in an industry such as this one? Explain why you think these plans would be important. 3. What contingency factors might affect the planning Garmin executives have to do? How might those contingency factors affect the planning? 4. What planning challenges do you think Garmin executives face with continuing to be the global market leader? How should they cope with those challenges