TomTom N.V in the industry of the PND (Personal Navigation Devices)

Résumé du document

The Global Positioning System (GPS) is a U.S. space-based global navigation satellite system. It provides reliable positioning, navigation, and timing services to worldwide users on a continuous basis in all weather, day and night, anywhere on, or near the Earth. GPS is made up of three parts: between 24 and 32 satellites in Medium Earth Orbit, four control and monitoring stations on Earth and the actual navigation devices that the users own. GPS satellites broadcast signals from space that GPS receivers use to provide three-dimensional location (latitude, longitude, and altitude) plus the time. GPS has become a widely used aid to navigation worldwide, and a useful tool for map-making, land surveying, commerce, scientific uses, tracking and surveillance, and hobbies such as geo catching and way marking. Also, the precise time reference is used in many applications including the scientific study of earthquakes and as a time synchronization source for cellular network protocols. GPS has become a mainstay of transportation systems worldwide, providing navigation for aviation, ground, and maritime operations. Disaster relief and emergency services depend upon GPS for location and timing capabilities in their life-saving missions. The accurate timing that GPS provides facilitates everyday activities such as banking, mobile phone operations, and even the control of power grids. Farmers, surveyors, geologists and countless others perform their work more efficiently, safely, economically, and accurately using the free and open GPS signals.

Extraits

[...] But it's important to choose the good magazines, and not to do this randomly Creative strategy As you could have seen previously, campaigns of TomTom are fun. It's an interesting way of promoting a high-tech product. Normally, a high-tech product is promoting via a serious way, with a description of technical aspects. To promote a high-tech product with fun allow us to reach more consumers. Because we believe in laughing. We think than laughing can bring us more consumers and reach new ones. [...]

[...] But obviously, the main target will be wealthy So for the magazines, we have chosen, cars magazines, men magazines and general magazines. - Auto-moto - Auto plus - Auto verte - L'auto journal - Automobile magazine - L'essentiel de l'auto - GQ - H for Men - Men's Health - FHM - Maximal - Le point - Capital - Management - Billboards: where? The “wealthy” driver has to see the billboard. So we have chosen to place these billboards in the streets (big streets like boulevards, avenues But it's also a good choice to place ads on buses, like we see a lot in the U.K. [...]

[...] Suppliers In this market, the power of suppliers is very strong. Indeed, satellite tracking is a free service provided by the U.S. government. However, the work of mapping, essential to the navigation software is supplied by only 2 actors who share the market: - The Dutch Tele Atlas, recently acquired by TomTom, which provides TomTom and Mio for example - The American NavTeq, which provides Magellan, Michelin, Sony, and now Garmin. Both market players adopt the same method of data collection: they travel the highways equipped by receivers to record the smallest details that may help the motorists. [...]

[...] An oligopolistic market where competition is fierce and the products more and more innovative and functional Industry segmentation The industry satellite navigation system can be split into several distinct segments, representing different PND (personal navigation devices). The three segments that can be proposed: - transferable”: autonomous navigation system, portable (e.g. TomTom Go). This system is the worldwide best-selling navigation system. It is the more attractive system to motorists due to their large screens and features highly developed. - "Handled": software to install on PDAs (e.g. TomTom navigator). - "Smartphone" (kits for mobile phones): this expanding system due to advanced features could significantly influence the PND market in the years to come. [...]

[...] Moreover, it's a very young industry; so many investors are investing in the PND industry, and widely, in the GPS industry. We can divide this industry into several parts: - Independent navigation devices - Softwares for smartphones and PDA - Kits for classic mobile phones The leader of the global market is Garmin, with 25% of market shares, but it's interesting to notice that TomTom N.V is the direct follower with 24% of market shares. So it's like a race to win the first place Today, people are using the GPS system, so PND, for everything; for fishing, hiking, biking, with cars obviously, with boats, for hunting So PND brands are increasing their range of offers in order to provide specialized products for every kind of use Value chain of the industry 3. [...]