...The sales that generated by TomTom are impacted by the economic fluctuations of the market in which it competes. If the economic is downturn, it is limited the capacity for business and consumers to spend, as a result, the level of revenues for TomTom are going down. For example, the economic recession in year 2009 was brings a huge impact to TomTom. The economic recession in year 2009 is considered the “dark side” for TomTom, it brings a huge impact to them and enables TomTom almost go into troubles and crisis situation. Until the huge recession in 2009 has passed away, the economics of TomTom still unable to fully recover and the revenue is still affected. The economic recession has brought more impact on TomTom in term of their sales and revenue growth. It leads to a significantly dropping of the sales and revenue growth of TomTom, for example “on 22nd July 2009, TomTom reported a fall of 61% in its net income at the end of 2nd quarter 2009”. TomTom has a significantly dropping of their sales and revenue growth because there have a price war exist during economic recession, especially in mature industries of TomTom such as in US and European, it was affected the profit earned by TomTom. Besides that, another reason is almost customers were reducing their expenditures and avoid buying the unnecessary things such as devices since it is still seen as luxury products during economic recession, and thus it reduced the sales and revenue growth of TomTom. (ii) The global forces ...
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...Summary GPS devices have become increasingly common due to the advancements of electronics. They can now be hand-held and are highly prominent on roads. This is particularly noticeable in taxis, as most cabs are now fitted with some form of GPS device and many fleets have enforced mandatory GPS policies. This document analyses the impact and worth of refitting a fleet of taxis the size of Canberra Cabs with new portable GPS devices. A series of systems analysis techniques were applied in the analysis of the devices in order to reduce the complexity of the components. A major period of device improvement was identified as the time between 2007 and 2009 based on a diffusion of innovations analysis. The analysis of two particular devices, the TomTom XL 310 (2007) and the Garmin Nuvi 1350 (2009), were used as a comparative measure of the improvements made in the time period. The devices chosen for analysis were ergonomically assessed in terms of their user interface. The major factors improved were found to be the prediction of text and consistency with other devices users may be familiar with. An experiment was then designed and performed to test these factors independently. It was found that the factors above accounted for a time saving of between 30% and 40% for acquiring the required directions on the new device. The embodied energy of the devices was found to be approximately consistent, but other factors suggested a cheaper manufacturing process for the newer device. The environmental...
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...TomTom Begrænset garanti GARANT Køb uden for de Forenede Stater og Canada: Hvis du har foretaget dit køb uden for de Forenede Stater, ydes denne Begrænsede garanti af og fastsættes denne Ansvarsbegrænsning til fordel for TomTom International B.V., Rembrandtplein 35, 1017 CT Amsterdam (Holland). HVAD DENNE GARANTI DÆKKER 1) TomTom International B.V. ("TomTom") garanterer, at denne hardware er fri for materiale- og fabrikationsfejl ved normal anvendelse ("Defekter") i en periode på et (1) år fra datoen for købet af denne hardware ("Garantiperiode"). I løbet af garantiperioden vil denne hardware blive repareret eller udskiftet efter TomToms valg ("Begrænset garanti"), uden omkostninger for dig til løsdele eller arbejdskraft. Denne begrænsede garanti dækker kun udskiftning af hardwaren. Hvis denne hardware repareres efter udløbet af garantiperioden, vil garantiperioden for denne reparation udløbe seks (6) måneder efter datoen for den udførte reparation. HVAD DENNE GARANTI IKKE DÆKKER 2) Denne begrænsede garanti gælder ikke for normalt slid og brug, dækker ikke hvis denne hardware er blevet åbnet eller repareret af en af TomTom uautoriseret tredjemand, og dækker ikke reparation eller udskiftning af hardware, som har lidt skade på grund af: forkert brug, fugt, væsker, anbringelse for tæt på eller udsættelse for varme eller uheld, misbrug, manglende overholdelse af de medfølgende instruktioner, forsømmelse eller fejlagtig anvendelse. Den begrænsede garanti dækker ikke fysiske...
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...ABOUT TOMTOM: TOMTOM business units sell PNDs to consumers via retailers and distributors. Tele Atlas sells digital maps and related content and services to various industries. WORK offers professional solution for commercial fleets. AUTOMATIVE develops and sells navigation systems and services to car manufacturers and OEMs worldwide. Handset manufacturers and network operations are services with mobile navigation solution , map content and services by the business units TOMTOM and TELE ATLAS.TOMTOM financial performance: looking at profitability and financial strength. From 2005 to 2007, the company had a consistent growth in revenue sales with a corresponding increase in net income. This changed from 2008 with a decline in sales revenue of 3.7% and a net income decrease of 136%. This can be accounted by the downturn of the economy but also indicates that TOMTOM did not change its strategy quick enough to absorb the changes in the economy. Sales revenue further decreased in 2009. Also look at competitive strength, TOMTOM is suffering from continuous pressure from competition and decrease in retail prices of GPS units. GARMIN is still the leader with market share of 45% while TOMTOM has a market share of 24%. Based on the above, TOMTOM has a competitive strategy but not a total winning strategy. They need to look at the industry and be more pro-active at market changes and other threats which they identified. TRENDS: Demand for portable navigation devices have declined as traffic...
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...INTRODUCTION TomTom (TOM2) is one of the largest producers of navigation systems in the world, comprised of both standalone devices and applications. The company leads the navigation systems market in Europe and is second in the US, but as these markets become saturated TOM2’s sales growth rate and profits decrease. Contributing to the decline, Google and Nokia offer free navigation features on GPS-enabled smartphones. Despite competition, TOM2 will increase in profitability due to innovation and their ability to take advantage of external opportunities. SWOT ANALYSIS Internal Strengths TOM2 has brand recognition. According to the company, three out of four people are aware of TomTom products. As TOM2 diversifies into new markets there lies a strength in brand loyalty, as consumers will prefer the products of this established company compared to lesser known competitors, allowing TOM2 to charge premium prices for their brand name. TOM2’s belief in radical innovation is one of their greatest strengths. TOM2 continually develops better routing and traffic information. TOM2 has the world’s largest historical data base of IQ routes and possesses unique real time traffic information updates which empowers drivers to reach their destination better informed. As a result, TOM2 has increased the utility customers gain from using their value-added services. TOM2 can raise prices to reflect this utility or hold prices to induce sales thereby expanding sales volume. Internal Weaknesses ...
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...info@askanalyst.com +373-796-24706 Initiation of Coverage 26 September 2005 TomTom NV Eurolist: “TOM2” Rating: Buy Price target: 45.9 EUR Quote 52-Week Range Recent Price Market Cap Shares Outstanding 09/26/05 35.86 $3,673.0 Mn 102.4 Mn € ’mn Revenue EBITDA Net Income Total Assets Total Debt Shareholders’ Equity Debt/Equity ROE ROA EPS P/E 2003A € 39.1 10.4 6.2 21.0 0.0 7.6 0.0 134% 48% € 0.06 2004A € 192.4 44.5 27.7 91.1 0.0 37.8 0.0 122% 49% € 0.26 2005E € 562.7 131.4 95.5 399.2 0.0 249.6 0.0 66% 39% € 0.86 41.8 2006E € 1,115.4 244.6 170.6 698.3 0.0 422.2 0.0 51% 31% € 1.53 23.5 We are initiating coverage of TomTom with BUY rating. The company has entered the commercialization phase after several years of development and reported tremendous growth of revenue, profits and cash flows. The company has the right product in the right place and at the right time, excellent operating and distribution capabilities, strong management team and a skyrocketing market. In addition, the company has excellent opportunities to outperform the market in terms of growth, as currently it is the leader on the European market, has the best product according to various research entities and sufficient cash resources to acquire smaller competitors and to finance the growth. TomTom’s expansion initiatives will provide it with stronger revenue streams from U.S., Australia, Eastern Europe and Asia. Moreover, TomTom has developed strong relationships with leading car and mobile phone manufacturers...
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...conjunction with connectivity satellites. This system is used to gain their respective work using GPS navigation satellites to gain their respective GPS coordinates. With these coordinates the internal system can place them on the map that have been installed within the PND and shows the user where they are in relation to other locations and can even give the best path from point A to point B. 2. Who are some of the leaders in PNDs? What are the likely factors that will contribute to winning in this marketplace? Between the top PND leaders are Garmin, TomTom, Magellan, and Motorola. The PND that I have personal experience with is the TomTom. TomTom is a European produces rugged, small easy-to-use handheld models that are perfect for hunting, fishing and traveling. It established is first PND product line after its strategic decision point to focus on car navigation in 2001. After a three-year research and development period, TomTom introduced its first PND in 2004. They are equipped with the...
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...MOD 5 SLP: Net Present Value, Mergers, and Acquisitions Trident University International Strategic Corporate Finance FIN 501 MOD 5 SLP Introduction Garmin is a global supplier of Global Positioning Systems. The company targets primarily the aviation, maritime and fitness industry. Garmin is the current leader in the GPS market boasting the highest equity and lowest debt in the industry. For Garmin to merge with another company, it would have to provide significant long term synergy or allow expansion into a new market entirely. A merger between Garmin and Trimble Navigation would benefit both companies and their shareholders. Garmin Limited – KVH Inductries KVH (KVHI) develops mobile communications products for land and marine markets worldwide. Garmin is offsetting losses and exploiting growth opportunities in the maritime GPS market at this time. Garmin could easily afford to acquire this company using existing free cash flows and expand its share of the maritime market. KVH has a current stock price of $4.30, an 11% Cost of Equity, and a market cap of 140M. KVH is considered an undervalued technology investment because it has demonstrated potential to design, and develop innovative products. This is exactly what a market leader in the industry would require to prevent the possibility of becoming stagnate or complacent. The same successful model of integrating mobile phone communications and GPS technology (which hurt automobile GPS sales) could be applied...
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...een buitenlandse medewerker (expat) en TomTom. Zo komen ze in aanmerking met andere culturen. Mensen met ervaringen uit andere landen. Daar kunnen ze veel aan hebben. Waarom haalt TomTom veel van haar medewerkers uit het buitenland? Ze zochten daar de mensen die bij grote bedrijven hebben gewerkt zoals Yahoo, google en microsoft. Deze mensen hadden veel kennis en dat konden ze goed gebruiken. 2. Omschrijf het begrip personeelsbeheer. Hoe ziet het personeelsbeheer van TomTom eruit? Personeelsbeheer: is extern gericht. Het houdt zich bezig met ontwikkelingen buiten de organisatie en bekijkt in hoeverre deze op korte en/ of wat langere termijn invloed hebben op het personeelsbestand van de onderneming. Personeelsbeheer van TomTom: Siemens VDO daar komen de mensen vandaan die allemaal overgestapt zijn naar TomTom. Automotive industrie en een universiteit en daar gingen kennis halen. Omschrijf het begrip personeelsbeleid. Geef een voorbeeld van een activiteit van TomTom op het gebied van personeelsbeleid. Personeelsbeleid: sluit aan op het personeelsbeheer door de daar genomen beslissingen te vertalen naar operationele doelen. Het personeelsbeleid is in eerste instantie intern gericht en omvat taken als het voeren van sollicitatiegesprekken, de begeleiding en advisering bij de invoeringen van een functiewaarderingssysteem en de ondersteuning bij de implementatie van loopbaanplannen van medewerkers. Personeelsbeleid van TomTom: Ze laten mensen aan producten of diensten...
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...TomTom Omezená záruka RUČITEL V případě nákupu mimo území Spojených států a Kanady: Pokud jste uskutečnili svůj nákup mimo území Spojených států a Kanady, je tato omezená záruka poskytována společností TomTom International B.V., Rembrandtplein 35, 1017 CT Amsterdam (Nizozemí) a v její prospěch. NA CO SE TATO ZÁRUKA VZTAHUJE 1) Společnost TomTom International B.V. nebo TomTom Inc. (dále jen společnost „TomTom“), v závislosti na daném případě, vám ručí za to, že hardware bude bez vad zpracování a materiálu za podmínek běžného použití (dále jen „závady“) po dobu jednoho (1) roku od data, kdy jste hardware poprvé zakoupili (dále jen „záruční doba“). Během záruční doby bude hardware opraven nebo vyměněn dle volby společnosti TomTom (dále jen „omezená záruka“) bez toho, aniž by vám byly naúčtovány použité součásti nebo práce. Tato omezená záruka se vztahuje pouze na urychlenou výměnu datového nosiče a hardwaru. V případě opravy hardwaru po skončení záruční doby končí záruční doba šest (6) měsíců od data opravy. NA CO SE TATO ZÁRUKA NEVZTAHUJE 2) Omezená záruka se nevztahuje na běžné opotřebení, neplatí v případě otevření či opravy hardwaru osobou neautorizovanou společností TomTom a nekryje opravy ani výměny žádného hardwaru ani jeho části poškozené nesprávným použitím, vlhkostí, kapalinami, vystavení působení tepla, nehodou, hrubým zacházením, nedodržením pokynů dodaných s hardwarem, zanedbáním nebo nesprávnou manipulací. Omezená záruka nekryje fyzické poškození povrchu...
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...In regards to the issue of how effective and efficient mobile-based applications are at capturing customer data and tools that utilize geolocation technology, we will begin with the current state of smartphone app usage and specific processes made in correlation with mobile devices. Experts predict that by 2020 there will be more than three billion mobile devices making 450 billion mobile transactions. (Chordas, 2012) This key set of projections made by experts concerning future trends in the mobile space, have many companies taking notes and preparing to use mobile based apps using tools like geolocation and customer data usage to their advantage. For example, in the insurance sector, companies like State Farm are creating apps that allow young drivers and parents to study driving trends, utilizing young drivers’ smartphones with mechanisms like accelerometers. State Farm just released its Driver Feedback app for use on Android devices. (Chordas, 2012) State Farm did not just focus on the Android smartphone platform for publishing their apps, the Apple iPhone was also part of the focus regarding their market expansion. State Farm published this unique app for Apple iPhones to engage broader smartphone markets. In 2011, the carrier launched an application for iOS devices that tracks driving behavior. This app as Chordas reports, offers teen drivers and their parents access to nonbiased feedback so families can have constructive conversations about safe driving. (2012) When...
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...Garmin’s Financial Statements Financial Management I Strayer University Introduction to Garmin Garmin was founded in 1990 in Taiwan, launched its first GPS product in 1991 and became a publicly traded company in 2000 (Funding Universe, 2013). During its first few years, its products were specialized for aircraft and boats. It finally launched its first automotive product in 1997, and in the early 2000s began working on cellular and handheld GPS devices (Funding Universe, 2013). The company’s mission, vision and values all intertwine to be a futuristic company full of innovation and top-notch customer service for all their segments of automotive, aviation, marine, outdoor and sports divisions (Funding Universe, 2013). Garmin’s Balance Sheet Analysis The balance sheet is the core of a company’s financial health and reveals the company’s assets, or what it owns, and its liabilities, or what it owes (JWMI, 2013). Examining Garmin’s balance sheet reveals that the company grew dramatically between 2005 and 2007, and then became more stable between 2008 and 2012. Given the current economy, Garmin’s cash and equivalents grew dramatically between 2006 and 2007 from 337M to 708M, and again between 2008 and 2009 from 696M to 1.09B. In 2004, Garmin had a mere 250M in cash and equivalents and in 2012 it ended the year with 1.23B in cash equivalents. In general, its total current assets almost double between 2005 to 2006 from 801M to 1.17B, and again between 2006 and...
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...GPS Business Opportunity Memo MKT/431 December 24, 2012 GPS Business Opportunity Memo A competitive analysis is an important step in new business opportunity for any business larger, medium, or small in size. This type of analysis is an assessment of the strengths and weaknesses of current and potential competitors. It provides information to help a new company with an edge to identify opportunities and treats in their perspective marketplace. Team D will describe the result of a competitive analysis for our GPS system, the NAVSTAR. We will explain the characteristics of the market niche to which the product will be targeted. Provide recommendation of our brands characteristics to support the GPS’s value. Specify the overall value proposition and recommend unique product characteristics that will appeal to our targeted market niche. Competitive Analysis With technology increasing everyday many people are using some type of GPS tracking system whether they know it or not. Global Positioning System was created originally for the military to use during maneuvers. NAVSTAR Global Positioning System is the preferred usage with the military because of the reliability of the PNT (positioning, navigation, and timing). Military use Precise Positioning Service signal for more accuracy of the Standard Positioning Service (Dana J. Johnson, 2006 p. 3) since 1950’s until present. Civilians currently have access to GPS navigation systems such as OnStar through their automobiles...
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...Garmin Ltd. (GRMN) is the global leader in satellite navigation. It is a company that designs, manufactures and markets portable, fix mounted and hand held Global Positioning System (GPS) devices. It also manufactures devices for communication that utilizes the combination of GPS technology and cellular technology for better coverage. Its products serve the automotive, mobile, wireless, outdoor, recreation, marine, aviation and OEM applications. In 2000, Garmin Ltd became a public company and is currently trading on the NASDAQ (GRMN). The company’s success is contributed by the quality of material and products that they deal with as well as its mission to enhance people’s lives through manufacturing of useful products by using this complex technology called GPS. This way the customer’s daily lives become less complicated and improved. Garmin also has a proven track record of solid revenue and earnings per share growth (www.forbes.com/garmin). Balance Sheet Analysis: The balance sheet ratios for Garmin for different years test the company’s liquidity and financial strength. “The smart business analyst comes to the balance sheet first to gauge the overall health of the company” (JWMI 530, Week Three, Lecture One). Garmin’s balance sheet represents the snapshot of its financial position on the last day of the year. (Brigham & Ehrhardt, 2011). Garmin seems to have a very strong balance sheet due to the company having zero long term and short term debt and plenty of...
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...and cellular phone and pda units. Customers The customers of Garmin products can be just about anyone who can drive an automobile, or operate a boat or plane. Customers would also include those engaged in aforementioned activities such as hiking, working out or using a cell phone. More specifically though, Garmin customers are those who are bad with directions and frequently get lost. Customers would also include those who may spend a lot of time travelling by automobile, whether locally or for long distances. Competitors Competitors of Garmin exist in many well known names to consumers of electronics. TomTom is a Dutch navigation device maker and market-leader in the field, and poses the biggest competition to the Garmin brand. However recognized brand names such as Sony and Phillips have since entered the niche market once dominated by Garmin and TomTom (Trent, 2006). Even more recently, Nokia and Google smartphones have begun offering a free navigation service with their phones and internet service, providing further competition for Garmin (Wolde, 2010). Conditions Current conditions of the market are that the economy is still slow. As previously stated, competition is increasing not only...
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