Strategic Management Case StudyPresentation

Agenda

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Current News Reanne Balolong

Case Question #1 Charles Han

Case Question #2 [Part 1] Reanne Balolong

Case Question #2 [Part 2] Tran Nguyen

Case Question #2 [Part 3] Amritpal Gill

Case Question #3 Amritpal GIll

Summary Reanne, Charles, Tran

Q&A Team

Quiz Team

Current News W hat 's happening to Tom Tom ?

Reanne Balolong

“ Fiat Chr ysler Automobiles Awar ds Global Deal to

T omT om”-WSJ

4Reanne Balolong

╺ Fiat Uconnect 5 In fotainm ent System w ill have Tom Tom ’s m aps, an d n avig ation an d live service

╺ U con n ect 5 w ill be read y in 20 20 ╺ S u baru a lso reach ed ou t to Tom Tom to h ave

th eir n avig ation softw are in th eir U S veh ic les ╺ W h at th is m ean s for Tom Tom : Tom Tom h as

fou n d a w ay to stay som ew h at relevan t

Current News

5Reanne Balolong

Case Question #1 Use the com pet it ive forces m odel to determ ine st rateg ic act ions for Tom Tom .

Charles Han

Competit ive Forces Model

7Charles Han

Competit ive Forces Model

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Risk of Ent ry by potent ial com pet itors Sm artphones and new app-based locat ion technology has gut ted the m ajority of estab lished Sat - Nav com panies.

Rivalry am ongst estab lished com panies in an indust ry Tom Tom has fierce com pet it ion from other com pet itors. (Garm in, Magellan)

Bargain ing pow ers of buyers Not m any supp liers, m eaning they do not have a lot of op t ions to choose from .

Bargain ing pow ers of supp liers Tom Tom ’s supp liers have to g ive reasonab le p ricing because their p rofits are correlated w ith Tom Tom ’s

Threat of subst itu tes Few com pet itors in the indust ry m eans that there isn ’t a large threat of subst itu tes, and even if they are availab le, p robab ly sim ilarly p riced .

Com plem entors Lack of com plem entary p roducts

Charles Han

Case Question #2 Provide d ist inct ive/core com petencies, resources, and capab ilit ies that set Tom Tom apart from the com pet it ion. Include a SW OT analysis. W hat st rategy suggest ions can you provide for Tom Tom ?

Tran Nguyen

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Cor e Competencies

Prominent Brand Image and Recognition

Innovative Technology

Wide variety of products and services

Tran Nguyen

One of the largest p roducers of satellite navigat ion system s

Im prove d riving safer and faster w ith accurate route in fo

Enab le the custom ers to live a m ore en joyab le life

SWOT Analysis Taking a look at St reng ths, W eaknesses, Opportun it ies, and Threats

Reanne Balolong

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Oppor tunities & T hr eats Opport un it ies

● Creat ing d ig it al m aps for develop ing coun t r ies ● Expand cust om er base w it h var ious au t om ob ile and cellu lar com pan ies ● Tom Tom has recen t ly sold sat ell it e navig at ion t o Huaw ei ● Tril l ian : Au t onom ous Veh icle Sof t w are- HD m app ing ● W ork ing w it h au t om ob ile com pan ies such as Fiat Ch rysler

Th reat s

● Threat s of subst it u t ion ● Aut onom ous veh icles

Reanne Balolong

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Str engths ● Strong product flexibility

○ TomTom shifted their focus from physical GPS systems to navigation software in cars

● Focus on Relevance ○ Trying to stay ahead by developing new technology with advanced driver

assistance ○ Starting research in navigation for autonomous driving ○ Available on all smartphones that support iOS and Android

Reanne Balolong

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Weak nesses ● No competitive advantage

○ TomTom’s competition with Google Maps, Waze, Apple Maps in terms of navigation software

○ Smaller companies, such as, Garmin, MiTac, and Alpine major competitors because of their similar physical products

● Low demand for physical navigation products ○ Potential customers do not have the need to buy physical GPS systems

● Outdated product design ○ Physical GPS system seems heavyweight and can be difficult to use if the

consumer does not know how to use a GPS ○ App is causing problems for users

Reanne Balolong

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Str ategy Suggestion

Design - Design is very outdated in terms of graphics and font

- Will not attract new customers as poor design associated with poor quality

- Competitors boast a better design due to modern artists being hired compared to older established ones in TomTom

Am ritpal Gill

Differentiate

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- TomTom needs to differentiate to stand out in flooded market

- Add more features and services to their product that competitors lack

- More budget towards Research and Development to help develop these new feature and services

Am ritpal Gill

Partnership

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- Many popular GPS platforms have associations such as Google Maps

- TomTom’s Huawei partnership is very beneficial to their brand

- Partnerships allow more brand equity and market value

Am ritpal Gill

Case Question #3 How long w ill Tom Tom ’s current st rateg ies last , and how w ill our st rateg ies im pact the com pany?

Am ritpal Gill

Current Strategies

Am ritpal Gill 20

- Recent partnership are made stay long term as the Fiat and Huawei are multi year deals

- From a $99 app to a subscription based payment method is going to be their main revenue method

- Wide variety of systems availability from motorcycles to trucks in different formats (in dash or external)

Strategy Suggestions

Am ritpal Gill 21

- Our suggestions of design is going to help attract first time users

- Partnership will allow more market value and brand recognition

- If TomTom differentiates, they can become the number one preference

Summary W hat have w e learned?

SWOT Analysis

23Reanne Balolong

A SW OT analysis is the com parison of st reng ths, w eaknesses, opportun it ies,

and th reats.

Tom Tom ’s W eaknesses:

● No competitive advantage

● Low demand for physical

products

● Outdated product design

Tom Tom ’s S tren g th s:

● S tron g prod u ct flexib ility

● F ocu s on relevan ce

Differentiation Strategies

24Tran Nguyen

To set the products and services apart from sim ilar ones of Tom Tom ’s com pet itors:

x

Provide the best locat ion and navigat ion solu t ion

Target a broad cross sect ion of the m arket

Constant innovat ion

x Many product variat ion and w ide select ion

Competit ive Forces Model

25Charles Han

1. Risk of en t ry from potent ial com pet itors - W EAK

2. Bargain ing pow er of supp liers - W EAK

3. Bargain ing pow er of buyers - W EAK

4. Threat of subst itu tes - W EAK

5. Rivalry am ongst estab lished firm s in the indust ry - STRONG

6. Pow er of com plem entary providers - W EAK

- Textbook (Page 50)

Q&A Any Quest ions?

Competit ive Forces Model

27Charles Han

SWOT Analysis Char t

28Reanne Balolong

Quiz! Get Ready!

Question #1 Which of the following is T omT om’s weak ness?

A . Great Product Design

B. W eak product flexib ilit y

C. No com pet it ive advantage

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D. No focus in relevance

Question #1 Which of the following is T omT om’s weak ness?

C. No com pet it ive advantage

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Question #2 What 2 car companies is T omT om r ecently

wor k ing with?

A . Fiat Chrysler and Subaru

B. Honda and Toyota C. Ford and Cad illac

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D. BMW and Buick

Question #2 What 2 car companies is T omT om r ecently

wor k ing with?

A . Fiat Chrysler and Subaru

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Question #3 What is the cor r ect str ength that T omT om has?

A . Relevant p roduct design

B. W eak flexib ilit y C. High dem and in physical navigat ion products

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D. Focus on relevance

Question #3 What is the cor r ect str ength that T omT om has?

D. Focus on relevance

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Question #4 What is the name of Fiat’s infor mation/enter tainment

system that T omT om is a par t of?

A . Fiat Connect B. Uconnect C. Fiat Cont rol

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D. Chrysler Cont rol

Question #4 What is the name of Fiat’s infor mation/enter tainment

system that T omT om is a par t of?

B. Uconnect

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Question #5 Which for ce is not par t of the or iginal 5 fr om

Por ter ?

A . Risk of en t ry by potent ial com pet itors

B. Bargain ing power of buyers

C. Threat of Subst itu tes

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D. Power of com plem entary products

Question #5 Which for ce is not par t of the or iginal 5 fr om

Por ter ?

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D. Power of com plem entary products

Question #6 Who owns the most mar k et shar e in the

Satellite Navigation technology industr y?

A . Tom Tom B. Garm in C. Goog le

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D. MiTac

Question #6 Who owns the most mar k et shar e in the

Satellite Navigation technology industr y?

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C. Goog le

Thank You! - T eam CART

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