EIC

Strategic Management

Done by :

Mohammad Habeeb

Ali AlShamsi

Mubarak Almansoori

For Dr. Osama Kadi

Agenda

1- Company Overview

2- Key Facts

3- Business Unit

4- Company Structure

5- SWOT

5- Porters 5 Forces

6- Financial Analysis

7- Marketing strategy

8- Recommendations

Company Overview- In 1991 TomTom was founded and

began a journey that would change

the way people drive forever.

- 2001 marked TomTom’s 10 year

anniversary and a new focus on in-car

navigation products for PDAs. By

June 2002 the TomTom Navigator was

launched, providing customers across

Europe with an easy-to-use,

affordable navigation solution for the

first time.

- The launch of the first TomTom GO

in March 2004 revolutionized the way

millions of drivers got from point A to

point B. The first ever PND was

affordable and accessible to everyone

and became the fastest selling

consumer technology device ever.

- In 2013 TomTom launched its own

branded GPS Sport Watches to help

runners, cyclists and swimmers keep

moving towards their fitness goals

Key Facts and Dates

1991: TomTom is founded

1996: First navigation software is launched

2004: Launch of the first PND

2008: Acquisition of Tele Atlas

2009: First line fitted automotive product is launched

2010: TomTom Traffic available across Europe

2011: TomTom Traffic launched in the US

2012: Global content deal with Apple

2013: Launch of TomTom GO series and GPS Sport Watches

2013: TomTom Traffic launched in Russia and Brazil

2013: Acquisition of Coordina, the Spanish market leader in fleet management

2014: New TomTom PND range launched in North America

2014: TomTom Traffic launched in China, Taiwan and Singapore

2014: Launch of TomTom Bridge

2014: Acquisition of DAMS Tracking in France

2014: Launch of TomTom Cardio GPS Sport Watches

Tom Tom in lines

• 4,000 employees

• 56 offices in 37 countries worldwide

• Since 2004 we sold over 75 million PNDs

• Hundreds of millions of probes contribute to our Traffic service

• Our real-time traffic information service is available in 41 countries

• Our maps cover 119 countries reaching more than 4 billion people

• 414,000 professional drivers are powered by our fleet management solution WEBFLEET

Business Unit

Consumer:

Consumer business is focused on

creating innovative products that

provide easy access to the

information consumers need to

make smarter decisions.

Automotive:

Our Automotive business provides

cutting-edge components, such as

maps, traffic and software to car

manufacturers

Licensing:

Our Licensing business leverages

our world-class map, traffic and

navigation content and services

Telematics:

Telematics is a business unit of

TomTom dedicated to fleet

management and vehicle

telematics.

Company structure

SWOT AnalysisStrength:Current market leader in Europe, second in USA.

Size of customer and technology base

Excellent distribution power

Prominent brand image as well as prominent brand recognition.

Weakness:Decreasing sales values for the first and second quarter for three years running year after year from 2007 to 2009

Revenue from both the main markets, Europe and North America, are on the decline with a decrease of 22% and 52% respectively from 2009 to 2008 respectively.

Not spending on business-to-customer (B2C) marketing restricts the possibility of sales to non-current customers.

Rely mainly on PND’s with limited back-up opportunities.

Opportunities:Excellent customer feedback tools – Map Share allows for fault detection, reporting and quick rectifying. Effective interaction with customers is TomTom’s opportunity to provide outstanding customer service experience.

Good structural and strategic investment in R&D to develop new and updated products and services.

Threads:

Potential adverse legislation and restrictions on the use of PND’s.

Potential competition from new GPS technology.

Potential competition from cell phone and smartphone providers.

Saturation of current markets.

Porters 5 Forces

New entry - high-collie :

information required to create digital map databases is available through public resources.

Buyer-High:

Buyers now have varieties of different devices to reach the destination, apart from the PNDs, they also could obtain the trip information by the use of smartphones or anyplace with public internet.

Supplier-High:

TomTom’ supply chain and distribution model is outsourced, it depends on limited number of third parties. Many innovative products in the market in our devices are only available from specific leading technology organizations.

Substitute-low:

A shift towards the Navigation solution on mobile phones and away from PNDs

Products using “off-board” technology

The Internet

Built-in automotive system.

Rivalry of the competitors high:

Tom Tom is facing increasing competition from smart phones which all of them offer similar services, also tom Tom facing the compositing with maps, services and built-in systems in cars with others.

Financial Analysis (in M Euro)

Marketing Strategy

Recommendations

• Marketing to new demographic that responds well to traditional advertising

• Aim to include averts predominantly in newspapers & magazines, as well as on television & radio

• Six-month to one year timeline to assess results and implementation

• Marketing Task-Team responsible for product development and awareness

Any Questions