Can Garmin survive? There are some things that they have already done, some things the competitors have already done, but most importantly there are things that can (and should) be done.
- First of all the Garmin GPS device is preinstalled in cars (they have done something close to that with BMW)
- They should adopt the Ad-supported model (maybe through partnering with a media agency like Google or Facebook). ONStar has Facebook installed and one can upload his/her status update from their car (voice based).
Our concrete proposal for Garmin to survive deals with:
- Adopting the App-Maker Strategy
- Develop Garmin-branded app for mobile phone platforms
- Adopt the freemium pricing model with offering free apps with basic maps or paid apps with a wider map selection
- Distribute through all major mobile phone platforms
- Competing with OnStar
- Garmin should become a wholesale Location Based Services (LBS) provider
- They should provide navigation aid
- They should connect to the car's data system and therefore to the driver's cellphone
- Adopt Search/Concierge support
In other words, Garmin should be sold as a bundle (with the car) and get revenues from the advertisers. A potential advantage is that the resale value of the car is increased due to online monitoring and therefore the value of the brand is increased as well !
- Adopting the Ad-model
- CPC/CPM/CPA base
- Quality score, based on CTR and distance
- Targeting based on proximity and destination
- Bidding basis
- Ad-formats: text - images - 3D images
Our concrete proposal for Garmin to survive deals with:
No comments:
Post a Comment