Merger and acquisition Of Palm and Handspring

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Situation Assessment and Problem Identification

External Analysis

From looking as an external analysis point of view, both the companies, that is, Handspring and Palm Inc. had their very own benefits and some threats that existed. Looking from a customer satisfaction perspective, both the companies were able to gain market share with the passage of time, over each other showing that both had the potential to fulfill the customers need by providing them with either best PDA's or by innovative smartphones.

Economic Analysis

General economic conditions: business cycle

The business cycle of both palm and handspring saw some economic up and downs over the past years. Initially both showed great growth as they were both governed by the core innovative members who showed their excellent innovation skills and boosted both the organizations to the top but later due to some financial issues faced by handspring and due to removal of pioneer innovators from Palm Inc, both faced some economic downturn and showed some fluctuation in their business cycle.

From looking as an external analysis point of view, both the companies, that is, Handspring and Palm Inc. had their very own benefits and some threats that existed. Looking from a customer satisfaction perspective, both the companies were able to gain market share with the passage of time, over each other showing that both had the potential to fulfill the customers need by providing them with either best PDA's or by innovative smartphones.

Effect of expected economic growth on industry

It won't be wrong to say that economic growth of both Palm and later Handspring have given new dimensions to the industry of handheld computers and smartphones that were derived from PDA's and were modified in such manner that they could give much more than a simple handheld computer to the users of those smartphone. These smartphones by Handspring have undoubtedly given a complete new division by introduction a product that is a combination of phones and computers.

Industry Analysis

The technological natured industry of PDA's and smartphones proved to be cyclic in nature as these innovations can only be accepted by their respective consumers if the economy is strong otherwise these innovations would have been laying in their warehouses. Capital investment made was also according to the need and requirements that were initially made by the initial owners in order to fulfill the demand of the customers that was expected to grow as the product will be launched. During growing economic growth, at one point the owners themselves worked all the night in order to fulfill the demand of customers which was increasing with the passage of time for improved PDA's that turned out to be smartphones. Competition was also very high that made it more difficult for both Palm and Handspring to keep up with the pace to provide the best quality product in reasonable price and also making sure that the product is available in the market.

The business cycle of both palm and handspring saw some economic up ...