Tomtom
2.0 Situation Analysis
2.1 General Environmental Analysis
(i) The economic forces
The sales that generated by TomTom are impacted by the economic fluctuations of the market in which it competes. If the economic is downturn, it is limited the capacity for business and consumers to spend, as a result, the level of revenues for TomTom are going down. For example, the economic recession in year 2009 was brings a huge impact to TomTom. The economic recession in year 2009 is considered the “dark side” for TomTom, it brings a huge impact to them and enables TomTom almost go into troubles and crisis situation. Until the huge recession in 2009 has passed away, the economics of TomTom still unable to fully recover and the revenue is still affected.
The economic recession has brought more impact on TomTom in term of their sales and revenue growth. It leads to a significantly dropping of the sales and revenue growth of TomTom, for example “on 22nd July 2009, TomTom reported a fall of 61% in its net income at the end of 2nd quarter 2009”. TomTom has a significantly dropping of their sales and revenue growth because there have a price war exist during economic recession, especially in mature industries of TomTom such as in US and European, it was affected the profit earned by TomTom. Besides that, another reason is almost customers were reducing their expenditures and avoid buying the unnecessary things such as devices since it is still seen as luxury products during economic recession, and thus it reduced the sales and revenue growth of TomTom.
(ii) The global forces
Because of the factor of size of its customer and technology base, distribution power and prominent brand name and recognition, it enables TomTom to compete in global markets and lead to become one of the largest producers of satellite navigation systems in the world and maintain their leading position over the long term. Apart from that, a wide variety of products with a unique features and high
2.1 General Environmental Analysis
(i) The economic forces
The sales that generated by TomTom are impacted by the economic fluctuations of the market in which it competes. If the economic is downturn, it is limited the capacity for business and consumers to spend, as a result, the level of revenues for TomTom are going down. For example, the economic recession in year 2009 was brings a huge impact to TomTom. The economic recession in year 2009 is considered the “dark side” for TomTom, it brings a huge impact to them and enables TomTom almost go into troubles and crisis situation. Until the huge recession in 2009 has passed away, the economics of TomTom still unable to fully recover and the revenue is still affected.
The economic recession has brought more impact on TomTom in term of their sales and revenue growth. It leads to a significantly dropping of the sales and revenue growth of TomTom, for example “on 22nd July 2009, TomTom reported a fall of 61% in its net income at the end of 2nd quarter 2009”. TomTom has a significantly dropping of their sales and revenue growth because there have a price war exist during economic recession, especially in mature industries of TomTom such as in US and European, it was affected the profit earned by TomTom. Besides that, another reason is almost customers were reducing their expenditures and avoid buying the unnecessary things such as devices since it is still seen as luxury products during economic recession, and thus it reduced the sales and revenue growth of TomTom.
(ii) The global forces
Because of the factor of size of its customer and technology base, distribution power and prominent brand name and recognition, it enables TomTom to compete in global markets and lead to become one of the largest producers of satellite navigation systems in the world and maintain their leading position over the long term. Apart from that, a wide variety of products with a unique features and high