As Palm loses its market share to Apple Inc. and Research in Motion (RIM). The goal is to cut costs and refocus their efforts to fight the current economic conditions and compete against the intense innovative rivalry in the electronic hand held and smart- phone product market. Palm, which employs 1 050 workers, makes the Centro and Treo smartphones. The company's market share has been shrinking, with RIM's BlackBerry becoming the device of choice for the business set and Apple's iPhone, a consumer phenomenon.[1] In order to turn the company around, the organization will have to raise substantial capital to have a healthier cash flow, which is always useful in this hard economic period.
Apple Inc. and Blackberry continue to dominate the smart-phone market with much success. These highly innovative companies have staved off competition through means of product differentiation and diversification, something which Palm may be at a disadvantage with. Unlike Palm, Apple Inc. and Blackberry show more versatility with healthy inflated cash flows that allow for flexibility in times of financial crisis. Dynamic companies can adapt to more dynamic times easier.
In order to catch up with Apple and RIM, Palm has hired former Apple supervisors John Rubenstein and Mike Bell, but still has a great deal to conquer. A recent study found that only 5 percent of companies would purchase a Palm-based smartphone over the quarter, down from 10 percent in the year ago quarter, while 78 percent sought BlackBerries, and 22 percent wanting iPhones. Palm is also struggling to deal with an imminent looming cash shortage, according to a Morgan Keegan forecaster. The company is allegedly investigating several routes to stay away from additional monetary predicaments.[2]
Apple Inc. and Blackberry continue to dominate the smart-phone market with much success. These highly innovative companies have staved off competition through means of product differentiation and diversification, something which Palm may be at a disadvantage with. Unlike Palm, Apple Inc. and Blackberry show more versatility with healthy inflated cash flows that allow for flexibility in times of financial crisis. Dynamic companies can adapt to more dynamic times easier.
In order to catch up with Apple and RIM, Palm has hired former Apple supervisors John Rubenstein and Mike Bell, but still has a great deal to conquer. A recent study found that only 5 percent of companies would purchase a Palm-based smartphone over the quarter, down from 10 percent in the year ago quarter, while 78 percent sought BlackBerries, and 22 percent wanting iPhones. Palm is also struggling to deal with an imminent looming cash shortage, according to a Morgan Keegan forecaster. The company is allegedly investigating several routes to stay away from additional monetary predicaments.[2]
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