Tomtom Essay

405 Words2 Pages
6 QUESTION 6: RECOMMENDATIONS 6.1 What recommendations would you make to TomTom management to improve its competitive position in the satellite navigation industry, take advantage of market opportunities, and defend against external threats? • Innovative thoughts will increase development- and distribution opportunities and will decrease threats from rival companies. With declining sales and inventory backing up, TomTom will have to find new sources of revenue. • They can focus on US markets as it still has room for growth. • Increase B2C advertising, focussed on innovative solutions they may offer, like real-time traffic updates and information. • Distribution points worldwide will increase levels of aftercare and service, increasing sales through improved customer satisfaction as well. • Capitalise on green markets and the advantages satellite navigation can hold in these markets, especially the management of fleets. Fleets fitted with TomTom hardware may recover lost PND unit sales of the past. • Increased number of partnerships with companies like Renault, Toyota and AVIS will increase exposure to consumers and increase unit sales as well. • Vertical integration and controlling the map creation process for developing countries as well will increase usage and also increase sales in the rest of the world. • Strategic mergers and acquisitions may open up new markets. • Improved customer experience with value added services in devices and services will increase customer loyalty and word-of-mouth advertising. • Customise products for use in countries like Canada and Australia to meet legislative standards before rivals can launch products of the same nature. • Launch a fleet telematics program to tap into the fleet industry and capitalise on the business services group’s current movement towards consolidation of products they use to service their
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