Tomtom: Strategic Analysis

TABLE OF CONTENTS

LIST OF ABBREVIATIONS III

LIST OF FIGURES IV

1 QUESTION 1: STRATEGY 1

1.1. WHAT STRATEGY IS TOMTOM PURSUING? 1

2 QUESTION 2: STRATEGY 1

2.1 HOW WELL IS THE STRATEGY WORKING? 1

3 QUESTION 3: GROWTH, OPPORTUNITIES AND PROFITABILITY 3

3.1 DOES THE SATELLITE NAVIGATION INDUSTRY OFFER ATTRACTIVE OPPORTUNITIES FOR GROWTH? 3

3.2 WHAT KIND OF COMPETITIVE FORCES ARE INDUSTRY MEMBERS FACING AND HOW DO THE FORCES INFLUENCE THE OUTLOOK FOR INDUSTRY PROFITABILITY? 4

4 QUESTION 4: SWOT ANALYSIS 6

4.1 WHAT ARE THE STRENGTHS AND WEAKNESSES OF TOMTOM? 6

4.2 WHAT ARE THE THREATS AND OPPORTUNITIES FACING THE COMPANY? 7

5 QUESTION 5: SUSTAINABILITY AND MARKET NEEDS 8

5.1 DO YOU THINK TOMTOM'S SHIFT TO VALUE ADDED SERVICE AND MAKING PERSONAL NAVIGATION DEVICES A SMALLER PORTION OF TOTAL REVENUE WILL BE ENOUGH TO SUSTAIN IT IN THE NEAR FUTURE? 8

5.2 IS THE STRATEGY CONSISTENT WITH THE NEEDS OF MARKETS OUTSIDE NORTH AMERICA AND EUROPE? 9

6 QUESTION 6: RECOMMENDATIONS 9

6.1 WHAT RECOMMENDATIONS WOULD YOU MAKE TO TOMTOM MANAGEMENT TO IMPROVE ITS COMPETITIVE POSITION IN THE SATELLITE NAVIGATION INDUSTRY, TAKE ADVANTAGE OF MARKET OPPORTUNITIES, AND DEFEND AGAINST EXTERNAL THREATS? 9

7 BIBLIOGRAPHY 11

LIST OF ABBREVIATIONS

R&D Research and development

PND Personal Navigation Device

GPS Global Positioning System

LIST OF FIGURES

Figure 1: Identifying the components of a single company's strategy. (Thompson et al. 2012:141) 2

1 QUESTION 1: STRATEGY

1.1. What strategy is TomTom pursuing?

A focussed differentiation strategy, focussed on the unique drivers for differentiation with the aim to enhance its success by applying the following:

 TomTom strives to create superior product features, design and performance in their products to try and outperform the competitors in their market segment.

 Their aim is to improve customer service by adding additional services to the...