Essay regarding Tomtom Advertising

2012

Last report

Group 5:

Rizwan Anwar

Christian Visschedijk

Irina Andreescu

Yiwen Lu

Tommy Pantic

Jeroen van Miert

449418

469263

449425

459114

437979

450453

Executive brief summary

The purpose of this report should be to analyze TomTom's internal and external environment and create a relevant new strategy that may be implemented by TomTom soon. The exterior analysis concludes that TomTom is affected by two elements; one is a growing (indirect) competition in producing (PDA) customer markets and second is a decreasing sales in their most critical markets. As a result TomTom is to change its concentrate from the consumer market to the Automotive, License and Business Solution market segments. However , these kinds of markets have never been able to compensate the weak sales in their Consumer marketplace. A wide number of factors are currently at work inside the internal condition. A restructering program, issues with the supply programs, a change to sales advertising distribution and a focus on growth upon more encouraging areas. Key elements from the SWOT analysis are that TomTom has a solid brand picture and great reputation. However, it is very poor outside of European countries. Furthermore, there is growth potential in both equally Europe and North America. A crucial thread is definitely the economic downturn. TomTom is quite a competitive value it has nevertheless plenty of business to gain and must enhance this position. When comparing with its key competitor, TomTom has trouble with its map coverage and financial position. A worry list has developed the following products: Hardware difficulty issue; Drive Space Mistake, Software system; Which include Installation Mistake and Map Error and Rapidly growing for Smart phone craze, people could replace TomTom device by phone, people are fancy regarding Smart phone.

Target for the new strategy goes toward the min-min strategy which can be supported by collaborative strategy. This kind of report deems this new purposed strategy well fit and feasible. Implementing the new strategy requires TomTom to focus on the following HR related issues: personal training and personal development and group cohesion and good inside communication. A great control system should be integrated on a global scale. Two important actions must be consumed order to put into practice this new approach: Reallocate money from the Western european PND industry to the new B2B market and reduce purchases of non-European countries.

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Advantages

Purpose

The purpose of this survey is to assess TomTom's internal and external environment and come up with a relevant new strategy that could be applied by TomTom in the near future.

History

Over the past 5 years, the PND sector in mainly Europe as well as the USA offers experienced significant pressures by a number of areas that have improved and continue to change the landscape of the PND industry (Ibis Report).

The rise with the smartphones and also other substitute products in the 2000s has perhaps had the very best impact on the PND sector. This has been mostly due to the ever-increasing influence of smartphones and innovative products, which have manufactured the PND industry significantly less relevant in recent years.

TomTom, and its particular main competition Garmin and MiTAC, want to keep up with the incredibly fastmoving technological advancements to stay competitive.

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Contents

Executive synopsis................................................................................................................................. 1 Launch............................................................................................................................................ 2 Purpose............................................................................................................................................... 2 Qualifications......................................................................................................................................... 2 External analysis

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