Tomtom's Personal Navigation Devices (PND)
ABSTRACT
The aim and objectives of this paper is to examine a case study on the navigation company TomTom, in order to gain a better understanding about their Strategic make up. The objectives were accomplished through qualitative methods of the case study analysis.
TomTom specialise in the design, manufacture and supply of Personal Navigation Devices (PND). The company, based in Amsterdam is a market leader in the PND industry. TomTom supply these devices to the end user, which provides real time traffic information they also work with automotive producers with regard to integrating their technologies into modern vehicles. TomTom provide navigation devices for car and motor bikes and downloadable applications for Smartphones.
This document will analyse TomTom’s current strategy, examine its internal and external
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This will intensify competition, and more than likely result in price competition and decreased revenues.
Strategic Actions
The case study clearly states that sales of Personal Navigation Devices (PNDs), (Hoffman, 2010). Sales comparisons of quarter one 2008, 2009 show that revenues from sales of PNDs fell from €234 million to €141 million, representing a massive 40% decline in revenue. Although this appears as a one-off drop, this trend is likely to continue:
• Changing consumer trends – as the case study highlights, consumer trends are changing more people are preferring devices with multi-functional capabilities such as Smartphones. There is the added incentive that these options are a cheaper alternative.
• Increasing competition - There is increasing competition from other platforms, 2005 FCC Mandate requires all mobile phone devices to incorporate GPS technology, for instance Google and phone manufacturers such as Nokia. (Hoffman,
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