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The TomTom way
The TomTom way 10 TomTom Annual Report 2006
We consistently make the best
products available to our customers.
Being first to market with innovative
products and services is one of our
key competitive advantages.
Car navigation
For more than 15 years TomTom has
focused on developing innovative and
smart products that exceed consumer
needs. Early on we recognised the huge
market potential of the newly emerging
navigation software, as it addressed a
fundamental need. Our primary goal was
to make navigation accessible for many
people so they could fully appreciate
the benefits of this new technology.
With that in mind, we focused on
developing simple, easy-to-use software
that would appeal to all car drivers, with
a user interface that could be quickly
understood, and on meeting the highest
quality standards.
When we launched the first GPS-linked
car navigation software for PDAs in 2002,
TomTom NAVIGATOR, the response
was overwhelming. However, to deliver
an even better navigation experience
it was essential to also control the
hardware. We evolved the product
further, combining it with hardware
in one stand-alone, fit-for-purpose unit.
Thus the TomTom GO was born, our first
portable navigation device (PND), which
quickly gained popularity and defined
the PND category.
The TomTom GO was acclaimed as a
smart, fun and reliable satellite navigation
solution. Ever since, we have continued to
concentrate on bringing to market what
customers want, receiving numerous
consumer awards along the way due to
the user-friendliness of our products. We
are successful in making complex
technology work in an intuitive, reliable
and simple way for all car drivers.
The way we have been able to secure
and expand our distribution and retail
presence across the regions in which we
operate has been key to our success.
Our excellent ‘trusted partner’ approach
and our low product return rate make for
mutually beneficial relationships with
retailers. But, more importantly,
this means that it is very easy for our
customers to find a shop nearby that
sells a TomTom.
The road ahead
Car navigation comes in several forms,
but PNDs will continue to be the growth
driver for the foreseeable future, as they
are uniquely fit-for-purpose products.
PNDs are becoming a product for the
mass market and although the market
remains widely untapped, over 10 million
devices were sold in 2006 alone. The
penetration of car navigation is increasing
rapidly and its growing popularity means
that we expect strong sales growth
to continue, particularly in Europe and
North America.
PNDs are becoming a tool for everyday
life for many people and drivers who are
increasingly able to save time and costs in
the planning and completion of journeys.
They are also seeing that PNDs reduce
stress in finding the best route to their
destination easily. Further, independent
research proves the positive influence
of satellite navigation devices on
driving safety.
As penetration and dependency on
PNDs increases, an opportunity to further
enhance the quality of the experience
for the user has emerged. This is about
better and faster routing and more
seamless access to dynamic travel
information, such as real-time road and
traffic conditions. As technology develops,
PNDs will connect more effectively with
the network and more and more add-on
features and services will become
available to car drivers. This will allow
better journey planning and enhanced
feature control from the office or
home computer.