Tomtom Swot

Strengths

Products with Live services offer the highest quality and most up –to-date real time services, such as HD traffic, speed camera information and local search.

Tomtom total PND customer base grew to 50 million. [4]

Selling products and services in 37 countries.

48% market share in the European market and 27% market share in the North America.[5]

Tomtom has a successful mobile navigation application; Tomtom app is one of the biggest selling products in the apple app store, with 0.5 million downloads.

A unique partnership with Nike to deliver a game-changing products for runners.

Continuous automotive expansion of relationship with Renault, Fiat and Toyota, also BMW, GM and ford.

Map database has become the most comprehensive available on the market, covering 12 more countries and five million kilometers of routable roads more than the nearest competitor; also with 40 countries map up-to-data.

Tomtom’s supply chain and distribution model is outsourced, increasing the ability to scale up or down the supply chain, and flexible to develop new products.

Weaknesses

High operating expense, overall operating expense in 2010 increased by €54 million to €554 million from €500 million in 2009, primarily caused by the increased investment in research and development as well as in marketing. [6]

TomTom has less resources compare with the current competitors.

Has limited suppliers, many innovative products in the market in TomTom’s devices are only available from specific leading technology organizations.

Opportunities

Potential growth to 30% penetration rate in Europe and north America.

The increasing demand for Real-time services.

Potential <5% penetration rate in india and Brazil.

Threats

The strengthening of the US dollar against the euro in 2010: on average, the US dollar rate appreciated 4% compared to 2009 which decreased the gross margin for 2010 by 1 percent point.[7]

Many of the current and potential future competitors have greater...