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Swot Analysis Of Tomtom

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At first TomTom developed software for business-to-business mobile applications and Personal Digital Assistance (PDA). They further developed this idea and shortly after an innovative in-car navigation product was introduced, the Personal Navigation Device (PND). This device was a 3.5-inch color touch screen with an easy-to-use software interface and an attractive design. The device was an immediate success both in Europe and North America, and from 300,000 sold by the end of 2004, the market accelerated to nearly 1 million the following year and 3 million in 2006. TomTom’s financial performance, not surprisingly, reflected their lack of innovation in their respective operating field. From 2007 onwards, TomTom’s market segment gradually switched …show more content…

Their strategy was to give away free services, then later change to a premium service and make costumers pay for further use. The PND market size started to shrink in North America and reached a point where the market declined by 15% to 20%. By 2011 sales and profit fell even faster than expected since PNDs accounted for almost 50% of TomTom's sales. Even the positive performance of the automotive and business-solutions divisions couldn’t solve the damage of the deteriorating market. Even to worsen the circumcises reports have surfaced that TomTom sold information, collected by their GPS devices, to the Dutch government regarding the speed of its customers. This way the police could set up speed traps to increasing the likelihood of getting caught for exceeding the speed …show more content…

A partnership was announced between TomTom and Apple, which gave the TomTom stock price the boost it needed. TomTom would deliver its maps and related services to Apple products like iPhones and iPads, and Apple would break the contract with Google, which has been their supplier of map- and navigation software. This was a great opportunity for TomTom to re-invent and refresh itself. This time not as hardware provider but as producer of map related content and

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