Swot Analysis Of Tomtom

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Introduction TomTom is a massive navigation services and devices provider with a diverse portfolio of products from physical, navigation devices such as the TomTom Go, TomTom One and TomTom Rider to their digital maps and software for iPhone. TomTom is a trusted brand in which 3 out of 4 people recognise and are aware of the brand. The company are a market leader in Europe and 2nd in the US; they credit their success to their technology, large customer base, distribution power and prominent brand image. The company has been investing structurally and strategically in Research & Development to bring new and better products and services to its customers. TomTom vision is to improve people's lives by transforming navigation from a ‘don't get …show more content…

TomTom's customer base is large and varied; the company adapted their strategies to meet the requirements of each group. For example, the first group mentioned is the individual consumers who buy stand-alone portable navigation devices and services. The second group is automobile manufacturers; TomTom has teamed up with companies such as Renault to develop in-built navigational units to install as an option in cars. A third group of customers is the aviation industry and pilots with personal planes, producing navigational devices for air travel at affordable prices. Business enterprises is another group of customers TomTom specifically targets, these are companies with large mobile workforces including Wal-Mart, Target or Home Depot. They developed a strategic partnership with a technology company ‘Advanced integrated solutions' to optimize fleet organisation and itinerary planning on TomTom pro series of navigation devices. This targeted fleet managers and route dispatchers to organise, plan and optimise their routes and to provide detailed mapping information about the final …show more content…

As technology becomes cheaper a major threat to the PND markets is new competition from mobile phones which are enabled with GPS, this is also seen as the future of the navigation industry. With the price of PND steadily decreasing this will be a concern for TomTom but with every threat there is an opportunity, TomTom have been restructuring their operations to keep up with the changing environment including taking employee competency very seriously and developing talent within the business as key to the ensuring future success of the business. The focus of operations has always been innovation, aiming to centralise R & D resources to create economies of scale, new organisation structure consists of four business units, which have clear focus on specific customer group with support from two shared development centres. TomTom's supply chain and distribution model is outsourced. This increased the company's ability to scale up or down the supply chain with minimum financial risks. At the same time, they may be over reliant on a limited number of 3rd parties and sole suppliers for competent manufacturing and supply. TomTom has put itself in a position to deal with the new mobile phone enabled GPS and will rise to the changes in their markets as they have done

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