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The TomTom way 11 TomTom Annual Report 2006
As car navigation grows in popularity
amongst consumers, we are also seeing
increasing demand from businesses.
Companies are starting to realise that
it is possible to save costs and control
their fleets more efficiently through
the installation of in-vehicle navigation
systems. This is because greater
efficiency and security can be achieved
through the tracking and monitoring
of commercial vehicles.
As the PND segment undergoes
important technological developments,
innovation will continue to be very
important. Technology advances will
create higher barriers to entry into the
market. TomTom’s total focus on personal
navigation is a significant advantage. We
develop our own hardware and software
in-house which results in tight integration
in our products which, in turn, gives our
customers the best possible user
experience. This, together with our scale,
customer base and market reach, makes
it increasingly difficult for new entrants
to succeed in this market.
Priorities
We defined the personal navigation
category and created a large market.
We are the world’s largest car navigation
company with an installed base of over
eight million users.
Product differentiation is key to success
and we will continue to deliver a wide
range of innovative products and services.
We will also aim at a wider spectrum of
the market. This means attracting
consumers at a broader range of price
points and it is also about targeting more
business-to-business customers.
As part of our strategy, we regularly
look for ways to achieve the above
more cost-effectively, including
the relentless improvement of our supply
chain. This allows us to have a more
flexible manufacturing policy, to diversify
the sourcing of key components and
other materials, and to optimise our
product costs.
It is as important to continue the
expansion of our distribution network
as it is to nurture relationships with our
existing retailers to keep channels well
stocked. In 2007 we will continue to
focus on increasing shelf space and
on expanding our global network of
retail partners.
TomTom has carefully cultivated its
products to achieve a ‘must-have’ status
amongst satisfied customers. We have
made navigation easy and smart, taking
much of the stress out of planning and
completing journeys. Investment in
marketing and brand development has
heightened user awareness of the
quality of our products and the values
that TomTom represents. Sustained
investment in these areas will help us
protect and grow our market share.
The best way to remain vibrant and
current in the market is through satisfied
customers. We reward the trust vested
in TomTom by making sure we deliver
‘future-proof’ products of the highest
quality, underwritten by outstanding
customer support. This will continue to
drive TomTom ahead of its competitors.
We monitor the quality of our products
and engage openly with our customers.
This allows us to offer better customer
support and to build long-lasting
relationships with them. This is invaluable
in identifying future customer needs,
placing TomTom in an excellent position to
spearhead the development of the next
generation of navigation.
We will make access to the network
easy and we will deliver superior, relevant
content. We believe that accurate, real-
time travel time information is critical to
drive personal navigation to the next level.
Fundamentally better navigation is our
vision, and current and future TomTom
customers will benefit from this.