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TomTom

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by

Nnenna Onwukeme

on 26 March 2014

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Transcript of TomTom

1996
2001
2003
2002
1991
TomTom was founded
Palmtop founded by Harold Goddijn, Peter-Frans Pauwels and Pieter Geelen
1st PDA
First navigation software for PDAs, EnRoute and RouteFinder launched
Palmtop Renamed
Palmtop renamed TomTom
Harold Goddijn joins TomTom as CEO
Number of employees 30
Navigator
First GPS-linked car navigation product for PDAs
TomTom Navigator shipped
8 Million Euros in revenue
Navcore
NavCore software architecture developed on which all TomTom prodcust are still based
Total of 90 employees
Company Timeline
2005
2006
2008
2007
2004
TomTom GO
First portable navigation device shipped called "TomTom GO"
24800 PND units Sold
IPO
TomTom listed on Euronext Amsterdam
720 million Euro revenue
Work & Mobility Solutions
TomTom WORK and TomTom Mobility Solutions launched
Number of employees grew to 818
HDTraffic & MapShare
TomTom makes offer for Tele Atlas
TomTom HD Traffic and TomTOm Map Share Launched
9.6 million PND units sold
Tele Atlas
TomTom acquires Tele Atlas
TomTom for iPhone is expensive

Long term debt

Lacking a B2C approach
Expansion into developing countries

Merge with cell phone companies

Compete in international markets
Competition

Legal and Environmental Restrictions

Aging satellites

Saturated/mature market


Technology

Distribution Power

Large Customer Base

Prominent Brand Name

Strengths
Weaknesses
Opportunities
Threats
Internal
Analysis
External
Analysis
Porters 5 Forces
Bargaining Power of Buyers
Strong bargaining power of buyers
So many substitute services
Rivalry among established companies
Garmin = 45% market share
Magellan = 15% market share
Navigon, Nextar and Nokia
Smartphones
Bargaining Power of Suppliers
High bargaining power of suppliers
Supply chain is outsourced
Great dependency on their suppliers
Threats of Substitution
High threat for substitution
Garmin
Magellan
Navigon
Nextar
Nokia
Other smartphones
Risk of entry for Potential Competitors
High industry barrier
TomTom and similar navigation companies make up 85% of the market share
Possible Problems
SWOT Analysis
Educate Customers
Increase partnership/merge
Spread to developing countries
History
Implementation
History
Intense Competition
Hand held devices
Garmin & Magellan
Navigational Website
Physical Maps
Built in car navigation devices
External Problems
PND distraction
GREEN Movement
PND Theft
Aging Satellites
Legislation
Main Problem
Spread to developing countries
Efficient market segmentation
High price for U.S. and European customers
Low price for developing countries

Give Free Samples
Culturally sensitive marketing
History
Foreign Navy Navigation
by Nnenna Onwukeme, Shuvo Das, Jena Diller & Taylor Turner
Alternatives
Main Solution
Full transcript