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Strategic Management

Trinh Truong

on 25 April 2013

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Transcript of TomTom

- Traditional competitors: Garmin, Magellan
- Cell phones
- AT&T navigator
- Online Navigation app: Google Maps, MapQuest
- Physical maps Software apps for mobile telephones and personal digital assistant:
- TomTom Navigator and TomTom Mobile

- TomTom apps for iPhone Strategic Alternative 1 Strategic Alternative 2 Strategic Alternative 3 Strategic Alternative 1 Diversification: concentrated growth

Focus more on the B2B segments:
- Aviation industry and pilots with personal planes
- Business enterprise (Walmart, Target, Home Depot)
- Coast Guard, marine navigational devices

- Distancing themselves from hardware production
- Niche market
Concentration growth: horizontal

- Partnership with Apple to have TomTom app pre-install

Reason for this suggestion:
- Core competencies of TomTom
- Sociocultural opportunity: cellphone now perform as a navigation device

What they need to improve:
- Real time traffic
- Accurate map update Diversification: concentric

Focus on the B2B segments:
- Aviation industry and pilots with personal plans
- Business enterprise (Walmart, Target, Home Depot)
- Coast Guard, marine navigational devices by Team Chester Introduction Harold Goddijn Financial Analysis Internal Analysis Strengths External Analysis Threats Dutch manufacturer of
automotive navigation system Products Stand-along devices
- TomTom Go and TomTom One: for cars

- TomTom Rider : for motorcycle Competitors Goals:
-Better maps: high quality map database, kept up-to-date by survey vehicles
-Better routing: world largest historical speed profile database IQ Route
-Better traffic information: real-time traffic update Weaknesses - Patents, innovation: such as IQ Routes, digital mapping technology, routing algorithms
- Acquisition of Tele Atlas: take advantage from their core competency - the digital mapping database
- Strong brand name
- Market leader in portable navigation devices/satellite navigation information services market in Europe
- Size of customer and technology base
- Directing marketing to B2B: building relationships - Saturation of EU and US market:
decreasing growth rates: down 21% in European
market, growth rate not as high in US as in recent years
- High price compare to other navigation system
- Lacking in B2C marketing: cuts off potential marketing directly to consumers
- Limited product line
- Debt from acquisition
- Used up cash reserves 1,006 million euro in debt Opportunities Core Competencies Political / Legal:
- Legislation possibly banning all navigation devices from automobiles
- PND thefts
- Restriction of certain capabilities for products in different countries
- Increasing competition from other platforms using GPS technology

- Aging satellites that support GPS systems

- Growing use of GPS as tracking devices Political / legal:
- Making the product safer for consumer in the automobile market

- Built-in-car navigation system now include in mid- to lower-tier vehicle
- Creating more precise navigation service

- Outdoor fitness a new trend and people now need a device for tracking

- People now tired of traffic, need precise navigation to avoid rush hour traffic. Also decrease fuel consumption.
- International expansion: India, South America, China And the which one is recommended? - TomTom: routing algorithms and guidance services using dynamic information
- Combine with Tele Atlas digital mapping database this gave TomTom an edge with in-house digital mapping technology Concentrate Growth: horizontal growth: international

Create digital maps for developing countries and create navigational services.

Reason for this suggestion:
- Expand their Global Market
- Increase revenues and will grow the company

What they need:
- Capital to invest in other country
- Work with legislation and regulation agencies
Full transcript