As the global leader in satellite navigation equipment, Garmin Ltd. recently hit a milestone number. It has sold more than 100 million of its products to customers—from motorists to runners to geocachers and more—who depend on the company’s equipment to “help show them the way.” Despite this milestone, the company’s core business is in decline due to changing circumstances.45 In response, managers at Garmin, the biggest maker of personal navigation devices, are shifting direction. Many of you probably have a dashboard-mounted navigation device in your car and chances are it might be a Garmin. However, a number of cars now have “dashboard command centers which combine smartphone docking stations with navigation systems.” Sales of Garmin devices have declined as consumers increasingly use their smartphones for directions and maps. However, have you ever tried to use your smartphone navigation system while holding a phone to look at its display? It’s dangerous to hold a phone and steer. Also, GPS apps can “crash” if multiple apps are running. That’s why the Olathe, Kansas-based company is taking explicitly aggressive actions to team up with automakers to embed its GPS systems in car dashboards. Right now, its biggest in-dash contract is with Chrysler and its Uconnect dashboard system is found in several models of Jeep, Dodge, and Chrysler vehicles. Garmin also is working with Honda and Toyota for dashboard systems in the Asian market.

Despite these new market shifts, customers have gotten used to the GPS devices and it’s become an essential part of their lives. That’s why Garmin’s executive team still believes there’s a market for dedicated navigation systems. It’s trying to breathe some life into the product with new features, better designs, 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, and highlighting exit services such as gas stations and restaurants.

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. (Make sure these goals have the characteristics of well-written goals.)

2. What types of plans would be needed in an industry such as this one? (For instance, long-term or short-term, or both?) 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?