TomTom 2007 Annual Report Download - page 17

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11
TOMTOM ANNUAL REPORT 2007
Under TomTom’s business model, all our core activities
remain in-house, including our software and hardware
technology expertise, our relationship with our customers, and
our branding activities. All other activities, such as hardware
production, manufacturing logistics and distribution are
outsourced to business partners. This model has given us the
flexibility to expand rapidly and efficiently over the past ten years.
FLEXIBLE BUSINESS MODEL
We aim to consolidate our leading
market sharein Europe and to
increase our market sharein the US
and elsewhere. We will do this by
continuing to increase the depth and
breadth of our products and services,
by expanding our global footprint, and
by deepening and widening our
distribution. At the heart of our
success lies the quality of our
products and services, and we invest
heavilyin development to ensure that
we continue to develop products that
consumers want and that are superior
to those of our competitors. It is also crucial that consumers recognise
and appreciateour technological superiority, and we invest in marketing
and advertising to ensure we retain our market leadership.
We are committed to making strategic acquisitions that will strengthen
our organic growth. These include Datafactory AG in 2005, which gave us
the WEBfleet technology at the heart of the telematics solutions offered
by TomTom WORK; and Applied Generics Ltd in 2006, which gaveus the
technology to develop our ground-breaking Mobility Solutions services.
In line with this approach, our proposed acquisition of digital map maker
Tele Atlas NV (‘Tele Atlas’) is another important step, because it will help
facilitate our key business objective to improve the quality of both
navigation and the user’snavigation experience. The end result will be
far superior maps from which the entire navigation industry and, more
importantly, consumers themselves will benefit.
CONTINUED GROWTH
0
40
50
60
70
80
10
20
30
2003 2004 20062005 2007 2008 2009 201120102012 2013 2014
PENETRATION RATE
(EUROPE & US)
(% of cars with some sort of navigation)