Tomtom Marketing

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2012

Final report

Group 5:
Rizwan Anwar
Christian Visschedijk
Irina Andreescu
Yiwen Lu
Tommy Pantic
Jeroen van Miert

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Executive summary
The purpose of this report is to analyze TomTom’s internal and external environment and come up with a relevant new strategy that could be implemented by TomTom in the near future. The external analysis concludes that TomTom is suffering from two factors; one is an increasing (indirect) competition in developing (PDA) consumer markets and second is a decreasing sales in their most important markets. As a result TomTom has started to shift its focus from the consumer market to the Automotive, Licensing and Business Solution markets. However, these markets have not been able to compensate the declining sales in their Consumer market. A wide number of factors are currently at work in the internal situation. A restructering program, problems with the supply channels, a change to sales marketing and distribution and a focus on growth on more promising areas. Important factors from the SWOT analysis are that TomTom has a strong brand image and good reputation. It is however very weak outside of Europe. Furthermore, there is growth potential in both Europe and North America. An important thread is the economic downturn. TomTom is quite a competitive price it has however plenty of market share to gain and must increase this position. When comparing with its main competitor, TomTom has trouble with its map coverage and financial position. A worry list has produced the following items: Hardware problem issue; Drive Space Error, Software system; Including Installation Error and Map Error and Rapidly growing for Smart phone trend, people would replace TomTom device by phone, people are fancy about Smart phone.

Focus for the new strategy goes to the min-min strategy which is supported by collaborative strategy. This 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 team cohesion and good internal communication. A solid control system should be implemented on a global scale. Two important actions must be taken in order to implement this new strategy: Reallocate money from the European PND market to the new B2B market and reduce investments in non-European countries.

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Introduction
Purpose
The purpose of this report is to analyze TomTom’s internal and external environment and come up with a relevant new strategy that could be implemented by TomTom in the near future.

Background
Over the past 5 years, the PND industry in primarily Europe and the USA has experienced significant pressures from a number of areas that have changed and continue to change the landscape of the PND industry (Ibis Report).

The rise of the smartphones and other substitute products in the 2000s has arguably had the greatest impact on the PND industry. This has been primarily due to the ever-increasing influence of smartphones and innovative products, which have made the PND industry less relevant in recent times.

TomTom, and its main competitors Garmin and MiTAC, are trying to keep up with the incredibly fastmoving technological developments to stay competitive.

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Contents
Executive summary ................................................................................................................................. 1 Introduction ............................................................................................................................................ 2 Purpose ............................................................................................................................................... 2 Background ......................................................................................................................................... 2 External analysis

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