Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
Transcript of TOMTOM
Dutch by origin, headquarter based in Amsterdam
Operations span from Europe to Asia Pacific, covering North America, Middle East and Africa
A workforce of 3,300 employees from 40 countries N°1 in Europe
N°2 in the USA VISION To improve people's lives by transforming navigation from a don't-get-lost solution into a true travel companion that gets people for one place to another safer, faster, cheaper and better informed. PRODUCT Q1 What strategy TOMTOM is pursuing Q2 Is that strategy working? Q3 Does the satellite navigation industry offer attractive opportunities for growth? What kind of competitive forces are industry members facing and how do the forces influence the outlook for industry profitability? Q4 What are the strengths and weaknesses of TomTom? What are the threats and opportunities facing the company? Q5 Which strategic problem/challenge is TomTom facing for the future? Q6 What recommendations would you make to TomTom management to improve its competitive position in the satellite navigation industry OUR CONSULTANT TEAM
- Maud PRAUD
- Nicolas ANGIBAUD
- Maria Isabel TANGARIFE
- François Mangin
- Thomas TAFANELLI
- Chen YING Thank you for you attention SWOT analysis Strenghts:
Reliable satellite navigation technology
R&D and Manufacturing Capabilities
Reliable, well known and established brand
Playful character with unique voice navigation and POI information
Real time traffic information and alternative routes
PND customer base: 50 million S
elling products and service in 40 countries Opportunities:
Emerging economies: Increase Global footprint and penetration of these markets.
In dash GPS devices
Creating digital maps for developing countries Partnerships with mobile networks and car manufacturers.
Growing use of GPS devices as tracking devices Green movement
Expansion of TomTom HD traffic's footprint Weaknesses:
Products are very generic
Unique selling proposition: heavily technical perceived more as a feature than a benefit.
Devices do not have an established self identity Marketing.
It is mainly done on-line on the website Lack of distribution
Operating expenses increased considerably in 2008 Threats:
Increasing competition especially in smart phone, mobile phone market and online navigation applications.
LBS apps: LBS expected to crowd mobile devices Price war
Free Google maps navigation online Changing Legislation and aging satellites that support the GPS system Value-added services and making Personal Navigation Devices (PND) a smaller portion of total revenue
-Opportunities in the navigation device market: untapped needs => Risk to loose market share
-Large opportunities in the PND market outside North America and Europe.
BUT change of strategy is good: increase in competition, price wars and entry of smart phones => how to replace the PND revenues in the future • Focus on providing the best information and navigation solutions on multiple platforms• Differentiation strategy • Focus on giving high quality information (in order to provide attractively different products from competitors)
> Better maps
> Better routing
> Better traffic information•
Innovation and R&D• Product diversification strategy :Supply portable navigation devices, built-in systems (partnership with Renault), software for mobile phones, internet and other online applications •Vertical integration, partnerships and IPO to support innovation and R&D
> IPO in 2005 (raised €469 million)
> Acquired Datafactory AG in 2006 (TomTom WORK)
> Acquired Applied Generics in 2007 (Mobility Solutions Services)
> Acquired Tele Atlas in 2008
> Partnerships with Renault, Advanced Integrated Solutions (itinerary planning and route guidance) • TomTom’s strategy does fit the industry
• A wide range of products well aligned with the industry requirements and customers’ demands
• Efficient mergers & acquisitions The Fit Test: • Better maps and better routing capabilities
• The leading position in the European market
• Various different prices ranges•Innovations & Partnerships The competitive advantage test: • From 2005 to 2007 the company had a continuous growth in revenue but since 2008 decrease in sales revenues• TomTom is suffering from continuous pressure from competition and decrease in retail prices of GPS units The performance test: A competitive strategy but not a total winning strategy #1 Look at partnership or service agreement with a Smartphone or mobile network operator/manufacturer. #2 Duplicate the successful Renault partnership with other motor and truck manufacturing companies. #3 Expand and be innovative in the fleet industry. There is continuous growth in this market. It is however price sensitive with the large competition in this area. #4 Augmented Reality (AR). This is one of the key technologies and offers new possibilities in the navigation capabilities. Investigate and see how this can be incorporated into existing and new product lines. #5 Need to mix in the value of the benefit that path tracking would add to the accuracy of their traffic data (more precise location, more coverage especially in rural areas where cell towers are less dense and where reliable traffic data cannot now be provided. #6 Pursue the competition into the mobile industry by creating a mobile handset.By doing this TomTom can become prominent in the PND market. 4Ps Product(evolve from high quality and easy use of solutions to simplicity and easy use): tom tom go and tom tom oneTom tom ridertomtom navigator and tomtom mobiletomtom for iphone Price : Quite high level of price Average price has been decreasing over these years Promotion: Develop of a strong brand name/image Place: Developing internationally: leads the navigation systems market in Europe and stands second in the US;Online shop &retail outlets Threat of new entrants: MEDIUM Large increase in GPS application on smart phones and cellular phones.•The PND market is consolidated and as a standalone product Threat of substitutes: HIGH Software applications available to cellular phones, smart phones and Ipad at lower costs•Popularity of in-built navigation devices in the car industry Bargaining power of suppliers: LOW Outsourced supply chain and distribution model•Dual-sourcing production from two different manufacturing partners Bargaining power of buyers: HIGH Websites are dedicated to compare various navigation devices •In-built navigation systems are chosen by the manufacturer Rivalry among existing competitors: HIGH Price war •Less differentiation between the TomTom’s products versus competition PORTER'S 5 FORCES PESTEL Political:
> Satellite navigation systems’ need of satellites managed by governments
> Economic crisis world wide•Devices still seen as luxury products and not a necessity.
> Mature U.S. and European
> Many opportunities in developing countries
> Lack of information and education of population
> Aging satellites could cause the failure of the GPS system globally.
> GPS functionality is becoming a standard feature on all new mobile smart phones.
> Possibility of legislative banning off navigation devices