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Handspring, Inc.: complete the following sections of a Strategic Audit

(List any source of information used to support your answers)

1. Analysis of Strategic Factors

2. Strategic Alternatives and Recommended Strategy

3. Implementation

4. Evaluation and Control

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ANALYSIS OF THE STRATEGIC FACTORS

The current strategies cannot serve the objectives, there is net loss, which the business is incurring, and the loss has reduced in the current year because the sales have fallen! The company further wants to increase its resources on costly advertising and marketing efforts rather than depend on word of mouth. The development of an operating system to compete with products which are having operating systems of their own is likely to be very costly and lead to further financial losses.

MAJOR FEASIBLE ALTENATIVE STRATEGIES AVAILABLE TO THIS CORPORATION

1. To develop an operating system which would be compatible with Microsoft's operating system.
2. To further develop the product so that it is technically superior to that of most of the competitors.
3. To reduce the cost of Treo so that it can compete on the basis of price.
4. To depend on alliances so that Treo is purchased as a tie up products with computers or with other communication devices like the upper end cell phones.
5. To reposition Treo so that it is perceived as a desirable add on to computers rather than a communication device.
6. To focus on institutional purchases by marketing Treo directly to large companies and organizations and target it as a device for improving organizational communication.

COST LEADERSHIP VS DIFFERENTIATION

If Treo is to become the most attractively priced product in the market, then this strategy would be an attractive strategy, however, it would face fierce competition from larger companies who might be willing to take losses to out compete. Even though Compaq which is having the fastest growth in the handheld devices market and its merger with HP making it a formidable competitor does not have a history of incurring losses to compete, the company may cut prices to compete. Palm may not compete on price and this may provide opportunity Handspring to increase its market share. However, cost cutting may require considerable know-how and fine tuning the current production process.

Differentiation in the past has been the hallmark of Hawkins and that has been the secret of ...

Solution Summary

In a 1379 word solution, the response provides a detailed and comprehensive discussion to each of the four parts of a strategic audit of Handspring, Inc.

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