BUS be to enter into joint ventures with Sprint PCS, Ipod and Fujitsu.
According to COO Colligan,”By working with the best integrators and back-end software providers in the industry, we can leverage each other’s experience to give corporate customers exactly what they want.” (Wheelen and Hunger, p11-12) This is part of the TQM philosophy. By forming these alliances, Handspring is expanding their knowledge, meeting the corporate customers’ needs and is better able to increase its marketing and distribution channels.
Joint ventures will allow the companies to share the risks and the costs involved. In order to introduce the new Treo smart phone, which uses the Sprint PCS cellular network, it would be offered on the Treo Communication website for an initial dollar amount and on Sprint PCS’ website and retail stores for less money with a one-year service agreement and even less with a two-year service agreement. This will allow the consumers to save money initially by locking them into a contract longer making the two companies more money. The next step Handspring would take would be to phase out Visor. The Visor products were hardware-based, and only expandable through hardware additions as opposed to software additions like the Treo. The Visor was also under price pressure from its many competitors. This was eroding the margins and making it less profitable.
With the elimination of the Visor line, the company can focus on the Treo. This will also increase the resources available for marketing the Treo and upgrading software continuously. The final phase of implementation that would need to be established would be an increased focus on R&D.
Technology is continually improving and in order to ensure continued growth, Handspring must stay ahead of the competition through improving current products and innovating new products. This needs to be done within an acceptable budget. As upgrades are made to the Treo, consumers would be able to trade in their old units for the new unit with rebates for limited times. When they trade their units in for rebates, they would be required to sign service agreements again.
This would make for assurance in retaining established customers.ReferencesHunger, J. D, & Wheelen, T. L. (2004). Strategic management and business policy.
Upper Saddle River, NJ: Pearson, Prentice-Hall.