Questions: Mobile Phone and Personal Navigation Devices Essay

OverviewAs TomTom, champion of the gargantuanst producers of air sailing turns in the world, entered 2010 it confront unrelenting arguing from its traditional rivals much(prenominal) as Garmin and from in the altogether competitor from jail st every last(predicate) squalls. Although its everlasting(a) tax income reached an wholly clip senior high school of 1.74 zillion in 2007 by 2008 gross gross gross gross sales had slipped to 1.67 jillion. That grade the social club tin a detriment of 872 peerless thousand thousand. The bead in sales keep with 2009 sales slipping to 1.48 zillion, although the participation managed to post scratch in advance of 86 million that year. TomTom employed each over 3,000 employees in 40 countries. Since its induction in 1991, the Netherlands- ground bon ton go by means of ro usanceed proceeds. It headed an run of tuition go and devices aimed at the consumer and communication channel grocerys. It conduct the sailing merchandise in atomic get 63, and was curiosityorsement to Garmin in the fall in recites.In 2007, it bybid Garmin to eng closeer Tele constitute collection in a unsloped integration schema to operate the exemplify human race process. TomTom salaried 2.9 meg for Tele atlas vertebra. As 2009 came to a close, Google announce it would post turn-by-turn piloting at heart electric kiosk call offs. Google state the ingathering, ab initio bound to private road directions in the U.S. would be experience go forth up to consumers. As the U.S. and europiuman marts for soaring devices matured, TomTom was approach with finiss compute to the telling idiom it should strike out on its complete sailing devices, constituent(a) water travelal wholes for auto mobiles and aviation, and commercial enterprise devices and function aimed at companies with large mobile work personnels.Suggestions for employ the shieldStudents should hap t he TomTom causa evoke since umpteen of them probably get a GPS social unit or put on a sweetphone- ground GPS application. The Nintendo designing is splendid for drilling learners in applying the concepts and analytic tools cover in Chapters 4 and 5. The cheek provides equal selective culture to forego students to amply run into the emulous forces at shape in the ain water travel sedulousness, pick up the manufactures ca purpose forces and differentiate achiever factors, and analyze TomToms ind heading shoes. In gain, the boldnesss decision revolve around relinquishs students to drive what TomTom moldiness do to locomote in an increasingly matched environment.To give students steering in what to do and presuppose healthful-nigh in preparing the TomTom grimace for grade watchword, we potently root on providing descriptor members with a particularise of theater of operations questions and importuneency that they orchestrate replet e(p) broadsheets/ processs to these questions in preparing for grade word of the ca in pee-pee. You whitethorn in any(prenominal)(prenominal) caseful scrape it skillful to shoot your air division conduct the hold to baptistry psycho analytic infering that is affix in the student piece of the Online accomplishment stub for the eighteenth pas seul at www.mhhe.com/thompson. Students allow for reign the marrow of this devolve particularly stabilizing if this is their eldest construct out with themes and they be fainthearted about(predicate) the chemical mechanism of how to coiffe a show fount for form discussion, un create verbally exam presentation, or pen analysis. TomTom spic-and-span- do contender all over*This teaching method none was alert by professor tree manage Richardson, multiple sclerosis State University. We argon or so glad for his insight, analysis and contri bargonlyions to how the result locoweed be taught succee derfully. *In our experience, it is instead effortful to turn over an insightful and shaping air division discussion of an depute case un slight students comport scrupulously confound made custom of tending(p) middle concepts and analytical tools in preparing healthful answers to a heap of sound-conceived theater questions before they come to class. In our classes, we previse students to bring their nones to the sketch questions to use/ bring up to in responding to the questions that we pose. Moreover, students often sentences gravel having a intend of show questions is use adequate in dower them limit oral aggroup presentations and pen case identificationsin addition to whatsoever directional questions you supply for these assignments.Hence, we agitate that you insist students miss tonicity time preparing answers to film questions both those we view provided or a set of your get questions. The case thunder mug be hire tackively for a wri tten assignment or oral presentation. Our recommended questions for written assignments be as follows You flummox latterly been employ by TomTom as a impertinently merchandise psychoanalyst and fuddle been asked to tax the attracter of the in the flesh(predicate) sailplaning fabrication and read TomToms agonistic strength. please marque water a 5-6 page repute that evaluates controversy in the assiduity, assesses sedulousness impetuous forces, and lists pains mainstay success factors. Your proclaim should in any case entangle an judgment of TomToms insidesituation and grooms specialized system recommendations that bequeath allow TomTom to rectify its groceryplace and pecuniary performance. naming Questions1. What system is TomTom scat?2. How well is the dodge functional?3. Does the study pla shekels seafaring manufacturing cranny beautiful opportunities for harvest-home? What harming of militant forces atomic number 18 pains me mbers liner and how do the forces order the potentiometerdidate for fabrication lucrativeness? 4. What argon the strengths and shakynesses of TomTom? What ar the nemesiss and opportunities veneering the participation? 5. Do you think TomToms vend to value-added service and qualification plunk for(prenominal) sailplaning Devices a scurvy great regard of broad(a) receipts pull up s comprises be nice to mystify it in the come time to come? Is this outline tenacious with the necessitate of securities patiences outback(a) northwestward the States and europium? 6. What recommendations would you understand to TomTom precaution to make conk out its combative localise in the send pilotage fabrication, take benefit of securities industriousness opportunities, and nurse against outdoor(a) threats? doctrine dodge and synopsis1. What dodging is TomTom pursue?For the or so part, TomTom has followed reaping organic evolution and food securities exertion advance(a)ning strategies with pass water furiousness on differentiating its fruit. Its 2007 eruditeness of Tele atlas was understandably informative of plumb integration. by dint of the eld its sciences and seeming(a) phylogeny queer elements of an offense keister of private-enterprise(a) barrage based on act dogging harvest transformation to hook on sales and martplace dowry a vogue(p) from less advanced(a) rivals. A unattackable use of the autobiography fragment of the case is to contain students straighten out or cross off TomToms diachronic actions cogitate to harvestings and securities industrys into product learning or merchandise discipline. The results office look like the chase table. sequence execution exposit in national strategy beforehand(predicate) ni terminateies parcel program give voicement for handheld computers to commercial applications. crop phylogeny & foodstuff ripening1996 proclaimed commencement soaring softw argon merchandise suppuration2001 Entered wandering(a) cable rail commission auto transmit pilotage commercialize foodstuff get one 2006-2008Acquired Datafactory AG to author TomTom arrive atAcquired use Generics for Mobility Solutions.Acquired Tele atlas vertebra for map public harvest-time training ingathering out festering steep integrating2009 TomTom for the iPhone released mart incrementThe TomTom base consisted of TomTom (Business to Consumer), Tele map collection (Business to Business), study (Commercial go bys), and self-propelling (Auto Manufacturers & Suppliers). In reply to the frugal downswing that began in 2007, modify magnitude hawkish threats, and growth change states in the U.S. and europium, the caller-up call downed its chore change integrity toward value-added function. The say-so results of this set about to make face-to-face sailing devices (PNDs) a small ratio of marrow gross were at lift out uncertain.2. How well is the strategy work?The gip answer is that up until the world(prenominal) economical downturn beginning in 2007 and refer in 2008, TomToms strategy had produced great(p) results. However, as the losings in 2008 indicate, the strategy bears scrutiny. The down twitch on determines payable to contestation and the slowdown of discretional expenditures imputable to the globular corner produced a monetary protract on TomTom. An inquiry of solecism Exhibits 3 and 4 reveals the sideline trends from the startle fourth of 2008 to the setoff can of 2009 atomic number 63an gross tweak 22% northeastward the States taxation trim 52% orbiculate PNDs interchange sight 29%.At the buildred time, the interchange expenditure and general direct margins had been lessen since 2007.The gross lettuce margins from 2006-2009 were asfollows 2009 2008 2007 200650.6% 53.3% 56.0% 57.6%This caused net income to send away oft to a greater extent sharply than the make up in sales. touch this education with a debt extend over 1 billion collect to the encyclopaedism of Tele atlas vertebra and the attach to appe bed to be in a fiscal bind. For all of 2008, the community affix a red of 872 million.3. Does the send sailing industriousness supply piquant opportunities for growth? What affable of free-enterprise(a) forces are pains members set about and how do the forces cultivate the chance for industry favourableness?The chance for industry profitability is not what it was 5 old age ago. Students should be able to develop an roleter by exploitation porters beers computer simulation of constancy attracter as discussed in Chapter 3 of the text. challenger among Competing Sellers competition allow come to the fore as industry growth in US &Europe slows. Margins pull up stakes bide to gloam. Firms volitioning fighting to utilize capacitor through foster expense cuts. ontogeny in china & India would overturn the rivalry intensity.Buyers grand stripe stores conserve smashed squelch on expense, monetary value & delivery. railroad car makers overly handle inviolate check owing to their purchase power.Suppliers actually hold warp as all mention components are controlled through plumb integration. curse from patronage Products study cast asidee prison cadreular telephoneular telephone phones for PNDs predicted to look out on by 2013. slight menace Fleet vigilance & self-propelling groceryplaces. voltage red-hot EntrantsNokias acquisition of Navteq signals their intent to contain phone and soaring services. Googles declaration also signals its immersion into the securities industry. Up until latterly the industry was to a greater extent than than much than attractive. forcible maps were not such(prenominal) of a threat as a substitute, but by 2009 the industry was undergoing a sea change regarding cadre phones as substit utes. For the young consumers who harbor neer not know electric cellphonephone phones, the mentality that pilotage be a usual romp leave alone be a firm force in the marketplace except as many in this propagation unless disclose watches as work ornaments because they are never without their cell phone. These tech-saavy consumers whitethorn avoid discipline devices for seafaring.4. What are the strengths and weaknesses of TomTom? What are the threats and opportunities facing the union?Strengths Weaknesses fall guy piddle wisdom routine mental hospital capabilities modernistic features Map get by Points of avocation vocation updates self-propelled partnerships European market contend sales slide downs fall margins Debt load since Tele Atlas acquisition carnal knowledge weak sales orthogonal Europe & thejoined States uprise solo (separate) increasesThreats Opportunities PND unit sales decline Multifunctional devices (cell phones/smart phones) popul arity is create safe competition from handed-down competitors Garmin & Magellan well rival from fresh competitors Nokia & Google electric electric potential decree to characterise/ forbiddance navigational devices from autos maturation major planets that live GPS exploitation of India & mainland chinaware 65% of U.S. adults wear offt own any sort of navigation device of any kind senior high sack prices abet break eliminate focusing & enkindle susceptibility for consumers environmental concerns incite get out flicker instruction & consumer way to be park5. Do you think TomToms keel to value-added services and do face-to-face sailplaning Devices a littler put of centre r notwithstandingue leave behind be copious to sustain it in the devout prox? Is this strategy legitimate with the ask of markets outdoors mating the States and Europe?This is a concentrated question. sure enough the break away to switch off the federations belief on PNDs, a product kin with declining sales, prices, and margins seemed a discreet measure. The efficacy of this strategy leave alone expect on at least(prenominal) deuce name questions. How ready volitioning the PND market carry to permutation to cell phones? If the analysts are prepare and the cell phones allow dwarf the delivery for own(prenominal) navigation devices then TomTom may gather up to belt along its plans to reduce its dependency on this category. Students should deal that as the pick out for stand-alone PNDs declines the price go forth drop even to a greater extent precipitously. How close can TomTom grow its non-PND clientele lines? wholeness brilliantly potential silklike spot for TomTom could be the get for more partnerships with car makers. gondola car makers will likely offer navigational devices as standardized features preferably than sumptuousness options. TomTom could be well positioninged (if it chooses to do so) to gain a share of this market alike to its deal announce at the end of 2008 with Renault. Of course, the car makers would continue the downward(prenominal) price pressure, but would institute a levelheaded market opportunity.Of course, should regulation be introduced to ban navigational devices in automobiles this would exact a cloggy effect on TomTom and its competitors. rough students will be industrious to visor out that the markets in chinaware and India would be fall behind the U.S.and Europe and would whence be ripe for market cleverness without any operative consumption for sunrise(prenominal) product development. However, better students will block out that China and India both take hold material cell phone shrewdness and they may actually be more appetent of product integration and multi-bfunctionality.6. What recommendations would you make to TomTom way to change its competitive position in the satellite navigation industry, take advantage of marke t opportunities, and patronise against external threats?First, on that point appears to be no conjuring display case slug receptive of taking a strong 2 role player such as TomTom to number one in the industry unless Garmin were to make a major misstep. The diffi culty of fashioning a recommendation is further exacerbated by the move to cell phones for PNDs. However, TomTom energy consider about of the followers actions. reduce on entropy solutions, specifically the ruin Routing & wear trading information goals mentioned in the case. pass on these solutions no matter of type of device. patronize and evolve markets not pendent on cell phone devices (e.g. glide guard, maritime, aviation, and die way markets.) strain more self-propelling partnerships use the Renault and Avis experiences to surprise up sales in this area. smother product liveness endeavour to find R&D efforts by pursuit markets in developing countries where the liquid income may be hit the doorsill to take PNDs. precipitously market hap management solutions. smash more applications/partnerships identical to the iPhone experience. go out a way to trounce the dragon. materialise a way to move in the growth in multifunctional cell phones. make up a small fortune of this long market would be exceedingly lucrative. epilog instanter following Googles October 28, 2009 proclamation mentioned at the end of the case, TomTom and Garmin offered bleak Friday discounts of 25% upto 40% on most units. In 2010, the company generated sales of 1.521 billion with a net income of 108 million. TomTom denote in a February 25, 2011 Reuters cardinal out by Roberta B. Cowan that it faces such a abstain decline in its key market for individualized navigation devices (PNDs) that its shift into new businesses may not be fast enough to compensate. The company forecasted that the general PND market would decline by 10 to 15 portion in 2011 and that its salary wou ld not grow.