CASE28

TomTom:NewCompetitionEverywhere!
I. CASE ABSTRACT
TomTom, an Amsterdam-based company that provides navigation services
devices, leads the navigation systems market in Europe and is second in
United States. Its most popular products include TomTom Go and TomTom One
cars, TomTom Rider for bikes, TomTom Navigator (digital maps), and TomTom
iPhone its most recent release.
The company attributes its market leadership to its technology, large
customer base, distribution power, and prominent brand image. But as the U.S.
and European personal navigation device market gets saturated, TomToms sales
growth rate declines. The company also faces increasing competition from other
platforms using GPS technology like cell phones and smartphones with a builtin navigation function. Legal and environmental restrictions on the digital
navigation industry make TomToms future even more uncertain.
TomTom responded to these threats by shifting its business mix toward
value-added services, making its personal navigation devices a smaller portion
of total revenue. Whether the company can regain growth may well depend on
whether this shift will succeed.
and
the
for
for

Decision Date: 2009

FY Sales: 1,480,000 Euros

FY Net Income: 231 million Euros

II. CASE SUBJECTS AND ISSUES

Situation Analysis
Strategy Formulation
Strategy Implementation
Core Competencies
Horizontal Growth Strategy
Marketing Strategy
Competitive Strategy

Environmental Scanning
Competitive Advantage
Threat of Substitutes
Market Segmentation
International Growth
Stages of Corporate Development
Growth through Acquisition

281
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS

IV. CASE OBJECTIVES

1. To discuss the future of the Personal Navigation Device Industry.
2. To discuss the growth of navigation devices in cell phones.
3. To discuss the growth opportunities of built-in navigation devices
in automobiles.
4. To discuss the importance of Tom Toms acquisition of TeleAtlas.
5. To Discuss Googles entry into the turn-by-turn navigation market.
V. SUGGESTED CLASSROOM APPROACHES TO THE CASE
1. This is an excellent case for instructor-led discussion.
2. This is an excellent case for an exam or written case analysis.
3. This is an excellent case for a team presentation.
4. This is an excellent case for an individual or team strategic Audit.
VI. DISCUSSION QUESTIONS
1. How important was TomToms acquisition of Tele Atlas to their longterm strategy?
2. How important is it for TomTom to grow their built-in automobile
navigation business?

282
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
3. If Google offers free navigation systems with their Android phone
operating system, will demand for PNDs decline?
4. Is a PND better than navigation in a cell phone? What if the phone
rings during navigation? What if you drive out of the range of the
signal?
5. How can TomTom enter markets like China when the government will not
allow mapping of certain areas?
6. How important is it for TomTom to update its navigation maps? How
often?
VII. CASE AUTHORS TEACHING NOTE Not Available
VIII. STUDENT STRATEGIC AUDIT
TomTom: Student Strategic Audit
I.
Current Situation
A.

Current Performance
1.
One of the largest producers of satellite navigation systems
(i.e. personal navigation devices, or PND)
a.
24% of market share in navigational devices
b.
Leader in navigation systems markets in Europe and
stands second in United States
2.
Revenues have grown from 8mn to 1.674bn between 2002 and
2008

B.

Strategic Posture
1.
Mission (clearly stated, appropriate to the company):
Navigation based information services and devices; competes
in navigation industry
2.
Objectives (clearly stated, aligned with the mission):
Focuses around radical advances in three key areas;
a.
Better maps
b.
Better routing
c.
Better traffic information

C.

Strategies (consistent with the mission and objectives)

1.
Maintain the industry leading position through Research and
Development (R&D) innovations
2.
Add value to products by mergers and acquisitions
3.
Strategic partnerships with businesses to increase revenue
4.
Create a strong brand image as world leader in portable
navigation devices

D.

Policies (not explicitly mentioned in the case; consistent with

the mission, objectives, and strategies)
1.
Committed to innovation
2.
Concern for user friendly navigation experience
3.
Sharing objectives with partners to provide user friendly
navigation

283
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
4.
5.
6.

II.

III.

High quality products and services is the priority

Create economies of scale in operations
Employee development program

Corporate Governance
A.

Board of Directors
1.
Publicly traded on the Amsterdam Stock Exchange; majority of
shares owned by the four partners
2.
Information directly related to the BOD is unavailable in
the case

B.

Top Management
1.
Peter-Frans Pauwels and Pieter Geelen, founders (1991)
a.
Educated at Amsterdam University
b.
Started company as software development for hand held
computers
c.
Personal finance, games, maps, dictionary
d.
International experience since formation of company
2.
Corinne Vigreaux, Managing Director/3rd partner (1996)
3.
Harold Goddijn, 4th partner (2001)
a.
Former CEO of Psion
4.
Mark Gretton, Hardware Team Head (2003)
a.
Former CTO of Psion
5.
Alexander Ribbink, New Product Sales Head (2003)
a.
A former top marketing official
6.
Anne Louise Hanstad, Marketing Head (join date unknown)
7.
Top Management
a.
Responsible for the corporations performance
b.
In their current positions for at least 7 years
c.
Other than the founders, all top managers were
external hires
8.
Strategic management approach
a.
Key acquisitions and partnerships
b.
Increasing revenue base through geographical expansion
c.
Diversifying its product and service portfolio
d.
Ensuring products and services are easy to use and of
high quality
e.
Strong branding
f.
Create scale economies to continue to lead the
industry in terms of innovation
g.
Top management is actively involved

External Environment: Opportunities and Threats

A.

Societal Environment
1.
Economy
a.
Worldwide economic downturn (T)
b.
Mature U.S. and European PND market (T)
I.
Decreasing sales growth rate for PND, 20052008(T)

284
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
II.
c.
d.

2.

3.

4.

B.

U.S. and European sales rate decreased but

worldwide sales rate increased (O)
Increased PND thefts in the US (T)
Recession may limit funding for the use of GPS
navigation devices as tracking systems by law
enforcement industry (T)

Technology
a.
Competition from devices using different platforms are
adopting GPS technology (T)
b.
Aging satellites may interrupt GPS navigation systems
and services (T)
c.
Advanced in-house routing algorithm (O)
d.
Creation of digital maps for developing countries (T)
I.
The acquisition of Tele-Atlas enables first
mover advantage in foreign countries (O)
e.
Incorporate new navigation services on existing
products (O)
Political Legal
a.
FCC regulation requires all cell phones to have GPS
receivers, 2005 (O/T)
b.
Proposed Australian legislation bans all automobile
navigation devices (T)
c.
Proposed Canadian legislation would only allow builtin automobile navigation devices (T)
d.
Create PDN lobbying group, similar to the
International Council Toy Industries (O)
e.
Increased terrorism threats may create negative
consumer attitudes towards navigation systems (T)
I.
GPS devices banned in Egypt since 2003 (T)
f.
GREEN movement promotes the usability of navigational
devices and portrays technology as a smart and
environmental safe tool (O)
g.
Restrictions of navigation devices in foreign
countries (T)
Socio-cultural
a.
Consumers preferences heading towards all-in-one
devices (O/T)
I.
Combine smart phones and GPS technology (O/T)
II.
Analysts predict phone-based GPS technology will
dominate industry by 2013 (T)

Task Environment (Industry)

1.
Threat of new entrants: Moderate
a.
Strategic acquisitions of key players hinder new
competition (O)
b.
Company patents make it difficult for new market
entrants (O)
c.
High resources necessary to compete in developing
countries (O)
2.
Bargaining power of buyers: Strong
a.
Wide array of customers increase product demands and
customization (T)

285
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
3.

4.

5.

6.

C.
IV.

b.
Large customer base (O)
Threat of substitute products or services: Strong
a.
Smart phones and cell phones incorporate similar GPS
navigation systems (T)
b.
Online and built-in navigation services (T)
Bargaining power of suppliers: Strong
a.
Supply chain and distribution is outsourced to
streamline expenses (T)
I.
Dependent on third parties and sole suppliers
(T)
b.
High distribution power (O)
Rivalry among competing firms: Strong
a.
Garmin has first mover advantage in India (T)
b.
TomTom and top two competitors account for 85% of
total market (T)
Relative power of unions, governments, special interest
groups, etc.: Moderate
a.
Government regulations may hinder GPS growth (T)
b.
GREEN movement promotes the usability of navigational
devices and portrays technology as a smart and
environmental safe tool (O)

Summary of External Factors See EFAS table, exhibit 1.

Internal Environment: Strengths and Weaknesses

A.

Corporate Structure (not explicitly stated)

1.
Business Units: supported by two shared development centers
a.
TomTom
b.
Tele Atlas
c.
Work
d.
Automotive
2.
Regions
a.
North America
b.
Europe
c.
Rest of World
3.
Revenue Segments
a.
PND
b.
Services
c.
Content
4.
Centralized decision making
a.
Comparisons of similar corporations unavailable

B.

Corporate Culture
1.
Based on: success of a business means success for the
individual employee
2.
Talent development programs built around culture
3.
Motto: to do business efficiently, profitability, as well as
responsibly
a.
Underlines corporate social responsibility
b.
HQ: one of the most energy efficient buildings in
Amsterdam
4.
Diversity: enables the company to compete in international
markets

286
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
a.
C.

Approximately 3,300 employees from 40 countries

Corporate Resources
1.
Marketing
a.
Strategy: high quality and ease of use solutions
I.
Consistent with clearly stated fundamentals of
navigation, mapping, routing algorithm and
dynamic information (S)
b.
Focus on prominent brand image and diversifying into
different market segments to continue focus on brand
name (S)
I.
Three of four people are aware of the brand
across markets (S)
II.
Acquisition of Tele Atlas

Trusted brand and long time supplier in

digital mapping with 30 years of
experience

Acquired to continue to strengthen Tom

Toms reputation and an edge with in house
digital mapping technology (S)
III.
Partnership with Renault and Avis to increase
visibility (S)
IV.
Range of PND offerings and prices (S)
Devices: TomTom One, TomTomXL and TomTom
GO Series
Services: IQ routes and LIVE services
High range and midrange models with
average selling price of 99
Entry-level options for just over $100
V.
B2B advertising direct to retailers and
distributors (S)
Investment in official blog and search
optimization (S)
Allows for effective word of mouth
promotion while keeping flexible marketing
spending in accordance to macroeconomic
environment or seasonal trends (S)
VI.
No B2C advertising

Lower overhead expenses (S)

Only 21% of U.S. adults own PNDs while 65%

U.S. adults neither own or use PNDs
1. Loses opportunity to attract firsttier non-customers and insight from
second tier non-customers (W)
c.
Targeting focus changed from early adopters to early
majority (W)
I.
Loses early adopter competitive advantage (W)
d.
Improves product performance and innovation by working
with customer to share updates and future improvements
(S)
I.
Sees effective customer interaction essential to
long term goal of innovation (S)

287
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
II.

2008 J.D.Power and Associates recognition of

outstanding customer service experience (S)
III.
J.D. Power and Associates also ranked Garmin as
highest customer satisfaction, ranking,
performing well in the routing, speed of system
and voice direction factors (W)
e.
Strategically placed to gain first mover advantage
created by rapid expansion of geographical coverage
(S)
I.
Geographic expansion key to increasing global
market share (S)
2.

Finance
a.
Objective: diversify and become a broader revenuebased company
I.
Goal to increase revenue base in terms of
geographical expansion but also to diversify
product and service portfolio
II.
Goal to reduce operating expenses through:
Staff reductions
Restructuring and integration of Tele
Atlas
Discretionary spending
Number of contractors
Marketing expenditures
b.
Sales
I.
Yearly growth in sales revenue and net income in
2005, 2006 and 2007 (S)
II.
Net loss in 2008 due to economic downturn and
increase of term debt and costs related to
acquisition of Tele Atlas (W)
III.
Quarterly growth reveals seasonal trend with
highest sales in last quarter and lowest in the
first quarter
2008 sales in Q1 were lower compared to
2007 (W)
Q2 higher in 2008 over 2007 (S)
Q3 flat between 2008 over 2007Q4 lower in
2008 over 2007 (W)
Q2 2009 shows increased revenue over Q4
2008 (S)
c.
Revenue per segment divided into PND, services and
content

Q109

Q108

Q408
Revenue(inmillions)
PNDs
172
264
473
Others
31
29
29
#ofPNDssold(thousands)

288
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
1,419
1,997
Avg.PNDSellingPrice

99
117

4,443
100

I.

Decreasing revenues of 40% in PNDs 1st quarter

of 2008 compared to last quarter of 2009 and
down 68% sequentially quarter over quarter (W)
Due to compounding effect of decrease in
the number of devices and decrease average
selling price (competing on price) (W)
However competing on price is part of
doing business in a highly competitive and
dynamic market place (S/W)
II.
Other revenues were up 5% in Q1 in 2009 compared
to 2009 and up 5% sequentially quarter over
quarter (S)
Increase in the number sold and average
selling price (S)
d.
Operating Margin decreasing in 2007 and 2008 after
increase between 2005 and 2006 (W)
e.
Revenue per region divided into Europe, North America
and rest of the world

Q109

Q108
Revenue(inmillions)
Europe
146,549
178,114
NorthAmerica55,558
84,641
RestofWorld10,976
1,097
Total
213,083
263,842
I.
II.

Revenues declining in Europe 22% and 52% in

North America in Q1 2009 compared to Q1 2008
(W)
Revenue from rest of the world up 90% in Q1 2009
over Q1 2008 (S)

f.

Debt and Liquidity

I.

II.

Long term debt increased between 2005-2009

Steady increase yearly between 2005 and
2007 (W)
Significant long term debt increase of
1160% between 2007 and 2008 (W)
Only 1% increase between yearend 2008 and
end of Q2 2009 (W)
Cash Assets
Cash rich and increase in cash assets
between 2005 and 2007 (S)
44% decrease in cash assets in 2008 (W)

289
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!

III.

D.

31% increase in cash assets the 6 month

period between yearend 2008 and end of Q2
2009 (S)
Borrowings
No borrowings between 2005 and 2007 (S)
Emergence of borrowings in 2008 (W)
3.7% decrease in borrowings the 6 month
period between yearend 2008 and Q2 2009
(S)

3.

Research & Development

a.
Structural and strategic investment (S)
I.
Resulting in new and better products and
services (S)
II.
Remaining on cutting edge (S)
b.
Focus on centralizing R&D resources to create scale
economies (S)
c.
Acquired several patents for its technologies which
protects from competitors (S)
d.
Reducing staff could hinder future innovative products
(W)

4.

Operations and Logistics

a.
Clear focus always on innovation (S)
b.
Operational objective: to channel all resources and
core capabilities to create economies of scale (S)
I.
Aligned with long term strategy (S)
c.
Supply chain and distribution model outsourced
I.
Decreases CapEx risks (S)
II.
Competitive advantage (S)
III.
Increases dependency (W)
d.
Increased dependency on network of the connected
driving community for products (W)
e.
Cost cutting program affects long-term innovation,
staff knowledge development and possible increased
loss of market share due to reduced marketing
expenditures (W)

5.

Human Resources Management

a.
Focus on individual employees success (S)
b.
Emphasis on employee competency via talent development
programs (S)
c.
Completion of Young Talent Development in 2008 (S)
d.
Cost cutting could hinder future talent development
program (W)
e.
Socially Responsible: commitment to customer base and
community as a whole (S)

6.

Information systems
a.
None mentioned

Summary of Internal Factors See IFAS Table, Exhibit 2.

2810
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
V.

Analysis of Strategic Factors (SWOT)

A.
Situational Analysis See SFAS table, exhibit 3.
B.

Review of Mission and Objectives

1.
Current mission is limited in scope
2.
New mission should focus on algorithm based information
products and services
3.
New objectives:
a.
Help clients to achieve greater time efficiencies and
enhanced process effectiveness through algorithms
4.

VI.

Effects
a.
Diversifying portfolio and risk through
I.
Potential new products and services
II.
Expansion into new industries

Strategic Alternatives and Recommended Strategy

A.

Strategic Alternatives
1.
R&D
a.
Experiment with cellular towers for GPS capabilities,
potentially eliminating satellite dependency
b.
Push innovation on core products, to include voice
control and real-time intuitive directions (i.e. to
avoid accidents and heavy traffic)
c.
Experiment with algorithms in other technologies (e.g.
electronic stock trading, search engines, etc.)
d.
Experiment with cell phone producing capabilities
e.
Pros:
I.
First mover advantage
II.
Create new markets
f.
Cons:
I.
Increased expenses
II.
Time to market
2.
International Expansion
a.
Explore new markets
b.
Explore emerging markets
c.
Pros:
I.
Overcomes U.S. and European maturing markets
II.
Higher growth opportunities in emerging markets
d.
Cons:
I.
Risk related to political, cultural and
regulatory concerns
II.
Time needed to develop localized maps
3.
Licensing Agreements
a.
Partner with Droid, Apple, and RIMM to develop
integrated navigation system preinstalled in phones
b.
Pros:
I.
Growth in market share
II.
Diversification of channels
c.
Cons:
I.
Possible lower margins
II.
Dependency on strategic partners

2811
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!
B.

VII.

Recommended Strategy
1.
Greater push for R&D
a.
International Expansion and Licensing are short-term
solutions with little innovation
b.
Current market is becoming saturated and new strategy
is required in order to remain competitive

Evaluation/Control See Exhibit 4.

IX. EFAS, IFAS, and SFAS EXHIBITS

Exhibit1:EFAS(ExternalFactorAnalysisSummary)

KeyExternal
Factors
Opportunities

Weight

Rating

Weighted
Score

International
expansion

0.15

0.60

Increasing
environmental
concerns

0.05

0.05

Campaigningfor
favorable
legislation

0.05

0.10

Alternate
navigational
platforms

0.15

0.60

Comments

TomTom'sacquisitionofTeleAtlas
providesthenecessary
technologicalknowledgetoexpand
tointernationalmarkets.
Increasinginternationalrevenues
allowsthecompanytoinvestin
developingcountries.
Increasedenvironmentalconcerns
promotetheusabilityof
navigationaldevices.TheGREEN
Movementportraysnavigational
technologyasasmartand
environmentalsafetool.TomTomhas
nottakenadvantageoftheGREEN
Movementasamarketingtool.
TomTomunderstandsthevalueof
creatingalobbyinggrouptoacton
behalfofthePDNindustry.APDN
councilmaydiscouragegovernment
frompassinglawsthatmaythreaten
theindustry.
AnalystspredictphonebasedGPS
technologywilldominateindustry
by2013.TomTommustactonthis
platformshifttomaintaina
competitiveadvantage.

2812
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!

Increasing
governmental
regulations

0.10

0.20

System
reliability

0.10

0.10

Maturedmarket

0.15

0.75

TheAgeof
Convergence,all
inonedevices

0.15

0.45

Threats

Proposedlegislationsmayprevent
theusageofPDNdeviceson
automobiles.Thereareincreasing
legalandpoliticalconcernsthat
PNDsmayassistterrorism.
Industryrelianceonpotential
outdatedsatelliteforsystem
reliability;analternate
technologyhasnotbeenproposed.
TomTomhasnocontrolover
satellitetechnologyand
maintenance.
TheUSandEuropeanmarketsare
matureandprovidedeclining
revenuelevels.TomTommustexpand
todevelopingcountriestomaintain
financialhealth.
Consumersarerequestingthe
convenienceofallinonedevices.
GPStechnologymustbeincorporated
ontootherplatforms.
TomTomhasastrongdependencyon
solesuppliersandthirdparties
forallproducts.

Dependenceon
thirdpartiesand
0.10
1
0.10
solesuppliers

TotalScore
1.00

2.95
*WeightsandratingsscalehavebeencreatedaccordingtotheStrategicAudit
Guide

Exhibit2:IFAS(InternalFactorAnalysisSummary)

Weight

Rating

Weighted
Score

CorporateCulture

0.05

0.10

Strongbrandimage

0.10

0.40

KeyInternalFactors
Strengths

Comments

TomTom'scultureisbasedonthe
ideathatinordertosucceed,
employeesneedtosucceed;
Underlinesdevotiontosocial
responsibilitythroughitsgreen
headquarters.
TomTomhasastrongbrandimage
inamaturingmarketwith
flexiblemarketingthatkeeps
costslowwhilediversifying
intoothersegmentsand
geographicalmarkets.

2813
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!

Outstandingcustomer
service

0.10

0.30

StrongResearch&
Development(R&D)

0.15

0.60

StrategicPartnershipsand
Distributors

0.05

0.15

Finance:Revenues,
Profitability&Liquidity
Decline,IncreasedDebt&
Borrowings

0.15

0.45

CostCuttingforR&D&
MarketingExpenditures

0.10

0.20

NoB2CPresence

0.05

0.10

LosingMarketShare

0.15

0.60

OutsourcedDistribution
Model

0.10

0.30

Weaknesses

Seeseffectivecustomer
interactionasessentialto
innovationandrecognizedby
J.D.powerandAssociatesfor
thisin2008.
CentralizingR&Dtocreatescale
economies;TomTomhas
structurallyandstrategically
investedinR&Dandacquired
severalpatentstoprotect
itselfagainstcompetitorsand
strategicallyplacedtogain
firstmoveradvantage.
Supplychainisoutsourcedwhich
decreasesCapEx;thecompany
alsohasstrongpartnerships
withRenaultandAvisto
increaseitsmarketpresence.

Duetomaturingmarket,the
strategyofcompetingonprice
andtheacquisitionofTele
Atlaswhichwasfundedbycash,
releaseofnewshares,longterm
debtandborrowings.
Reducingstaffcouldhinder
innovationandmarketshare.
Losesopportunitytoattract
firsttiernoncustomersand
insightfromsecondtiernon
customers.
ToGarmininmarketshareand
customerservice;Seeingashift
intargetcustomersfromearly
adopterstoearlymajorityas
wellasfromsubstitute
products.Asmentionedabove,
costreductionsinmarketing
expenditurescouldalsohinder
marketshare.
Increasesdependencyonthird
parties.

TotalScores
1.00

3.20
*WeightsandratingsscalehavebeencreatedaccordingtotheStrategicAudit
Guide

Exhibit3:StrategicFactorAnalysisSummary(SFAS)

2814
Copyright2015PearsonEducation,Inc.

CASE28
TomTom:NewCompetitionEverywhere!

KeyStrategic
Factors

Weight

Rating

Weighted
Score

Research&
Development

0.30

1.20

International
Expansion

0.25

1.00

Alternate
Navigational
Platforms

0.15

0.60

Maturing
market

0.10

0.50

LosingCore
Product
MarketShare

0.10

0.40

Finance

0.10

0.30

TotalScores

1.00

Duration
Short
term

Intermediate

Long
term

Comments
Technology
inthis
industryis
evolving
rapidly.
Developing
markets.
New
hardware
and
software
for
convergent
products.
Strongas
European
andU.S.
marketsare
maturing.
Lossin
revenuesin
core
segment:
PNDs.
Declining
salesand
increased
debtdueto
major
acquisition
forTele
Atlas.

4.00

*WeightsandratingsscalehavebeencreatedaccordingtotheStrategicAudit
Guide

Exhibit4:EvaluationandControl

Strategic
Factor
Research&

ActionPlan
Investmore

Priority
System
(15)
1

Whowill
implement?
Mark

Whowill
review?
Peter

2815
Copyright2015PearsonEducation,Inc.

How
often
review?
quarter

What
Criteria
Reviewed
?(EPS,
Quality)
Create

CASE28
TomTom:NewCompetitionEverywhere!

Development

resourcesto
developtonew
products

Gretton,
Hardware
TeamHead;
Software
TeamHead

Internation
al
Expansion

Business
developmentin
othercountries

Anne
Louise
Hanstad,
Marketing
Head

Alternate
Navigationa
lPlatforms

Maturing
Market

Business
developmentvia
strategic
partnerships

Reducecost
structurewhere
appropriateand
develop
differentiation
strategy

LosingCore
Product
Market
Share

Develop
differentiation
strategy;develop
algorithmsfor
otherindustries

Finance

Reducecosts,
spinningofflow
marginproducts

Frans
Pauwels
and
Pieter
Geelan,
founders
Corinne
Vigreaux
,
Managing
Director

Anne
Louise
Hanstad,
Marketing
Head

Corinne
Vigreaux
,
Managing
Director

Anne
Louise
Hanstad,
Marketing
Head;Mark
Gretton,
Hardware
TeamHead;
Software
TeamHead

Harold
Goddijn,
4th
partner,
former
CEOof
Psion

ly

new
products
for
markets
across
industry

quarter
ly

Revenue
growth
innew
markets

quarter
ly

New
partners
hips,
revenues
and
margins
gained
fromnew
partners
hips

monthly

Increase
in
market
share
relative
to
competit
ors

Alexander
Ribbink,
New
Product
Sales
Head;
Software
TeamHead

Harold
Goddijn,
4th
partner,
former
CEOof
Psion

monthly

Sustain
current
market
share
levels;
create
new
products
inother
industri
es

Finance
Head

Corinne
Vigreaux
,
Managing
Director

quarter
ly

Increase
in
profit
margins

*WeightsandratingsscalehavebeencreatedaccordingtotheStrategicAudit
Guide

X.

FINANCIAL ANALYSIS

Was inappropriate for this case.

2816
Copyright2015PearsonEducation,Inc.