Palm Case Study Essay
BACKGROUND: Jeff Hawkins founded Palm Computing Inc, a hand-held computer business, in 1992 which has since changed names (Yoffie & Kwak, 2001). In 1999 it changed to Palm Inc (Yahoo Finance, 2006). The case study concentrated on Jeff Hawkins, the founder of Palm, and Donna Dubinsky the former CEO of the company. These two left Palm in 1998 and founded a company called Handspring, the only company as of 2001 to take a meaningful share of the market away from Palm (Yoffie, 2001). Currently the CEO at Palm, Inc is Edward T. Colligan. For the period ending May 31, 2006, Palm had sales of $1.578 billion and a net income in excess of $336 million (Yahoo Finance, 2006). This is a significant increase over the …show more content…
Threats: The biggest threat to Palm was always competition. Their biggest competitor, Microsoft, had much more money to allocate to competing against them. They also had a very trusted and recognized name in the computing world. More recently they also have a threat from Handspring, which is the only company, as of 2001, to take significant market share from Palm (Yoffie, 2001, p. 63).
STRATEGY USED: Palm employed a judo strategy focusing on movement. They started off with the "puppy-dog ploy" to keep themselves under the radar of their competition while building up market share. They then focused on movement to help "define the competitive space" and force Microsoft to compete in a new arena. The last part of their movement strategy was to "follow through fast" to capitalize on their initial advantage and keep a continuous attack (Yoffie, 2001, p. 56). This strategy was highly successful for Palm allowing them to keep the lead spot in the market for six years until Handspring came around. It also allowed them to continually beat out their competition from Microsoft despite the fact that Microsoft is an industry giant. Judo strategy lends itself to small companies that are trying to break into a market that is "dominated by a large incumbent" (Yoffie, 2001, p. 56). They can use this