Analysis of Tomtom

2163 words 9 pages
Analysis of TomTom
Several years ago, it was so difficult for people to reach a place that they never got. The traditional paper maps were the useful tools for people travel. However, it is so dangerous for drivers look at the map while they drive. Also, if the road is being fixed, it is hard to plan another way to destinations. Over the society develops, there are more and more new technologies coming out. A great innovation gets into our life—the personal GPS. It gives many conveniences to us. In this assignment, we will launch the analysis of a well-known GPS company with the management knowledge. In this paper, we will discuss TomTom in the following topics: the summary of TomTom base on the case, the problems of TomTom face
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As a market leader, TomTom has a powerful customer and technology base. It does well in distribution. Also, TomTom has an outstanding brand image and recognition. As Hoffman highlights, the acquisition of Tele Atlas had significant improvements of TomTom. It made TomTom different from its major competitor, Garmin, which its executives decided to have a long-term partnership with its supplies rather than acquiring Tele Atlas because they thought the acquisition of Tele Atlas was too expense. By acquiring Tele Atlas, TomTom decreased its dependency on supplier. TomTom could control the producing process more easily. In the corporate-level strategy, TomTom chose the strategy of vertical integration. It helped the TomTom in enhancing product quality and improved scheduling. Moreover, the powerful workforce of 3300 employees from 40 countries gives TomTom has more opportunities and competitive power in global market. The case points out that the revenues of TomTom have grown from €8 million in 2002 to €1.674 billion in 2008. And then, TomTom has multiple products lines that have a wide coverage to meet customers’ needs of navigational hardware and services. It keeps developing on not only the traditional navigational devices, nut also the application on other devices, such as cell phones and tablets. It does well in monitoring the movement of market and reacting on time. As people increase the demand