Essay: TomTom

History
Peter-Frans Pauwels and Pieter Geelen were just graduated at the University of Amsterdam when they started a company in 1991 named Palmtob. The company Palmtob, developed applications for the first generation of handled computers. In that time most of the applications ware mostly for the business use. Thereafter they started to develop from dictionaries and personal finance to games and route planners. The company grew quickly especially after the great success of the Palm Pilot in 1996, the Palm Pilot was a mobile phone that functioned as a personal information manager. The second reason for the growth was that there was an attendance of the first Microsoft-based devices, and Palm Pilot developed applications for all these new devices. In 2001, Harold Goddijn got the new ‘big’ partner of Palm Pilot. And he gave the company a new name, TomTom. TomTom came with a mobile vehicle navigation system called TomTom Navigator, the TomTom Navigator was a big success. In 2003 TomTom launched a new product called TomTom Navigator, in that period TomTom attracted a new employee named Mark Gretton. Mark Gretton worked for Psion, Psion was a competing company. It was very weird, because they were big rival companies.
But he had a difficult task, he had to develop an all-in -one navigation product. He did well because, a standalone car navigation device, was released in the spring of 2004. In the autumn TomTom brought TomTom Mobile to the market, and navigation application that you can use on your smartphone.
On May 27, 2005 TomTom went to the fair, the proceeds from the IPO (initial public offering) were approximately ‘ 125 million that is a very large sum. Late 2007, the collaboration between TomTom and Toyota was announced, and on February 5, 2009 the collaboration with Renault was announced, these were both big deals.
During Apple’s WWDC on June 8, 2009 it was announced that TomTom would also be available for iPhone. In January 2010, the share price decreased by 10% after it became known that Nokia would come with a free navigation software for phones with a GPS receiver.
This was the history of TomTom broadly
TomTom offers three types of products: navigation devices, in-dashboard navigation and navigation software for mobile phones. Navigation software for mobile phones are
‘ All-in -one navigation devices (also named standalone), examples of standalone devices are the Go C6000 and the Go 50.
‘ Integrated navigation systems, but these are only integrated in the cars of the manufacturers they work with. TomTom works together with Renault and Toyota. the software in the Renault is called Carimat, and the software in the Toyota cars is called TNS400
‘ TomTom Mobile products are for users that want to make a car navigation system from a smartphone or mobile phone. And there is TomTom Navigator software for the users of PDAs , Pocket PCs and iPhones
The products from TomTom are mostly for people for people who travel frequently by car, bicycle or on foot
The company has 3,491 employees consisting of; (data from 2013)
‘ Research and development ‘ 2,265
‘ Marketing ‘ 102
‘ Sales, general and administrative ‘ 1,124 +
‘ TOTAL ‘ 3,491
The revenue for 2013 was ‘963 million. The biggest income of TomTom are the portable
navigation devices. But the demand for the portable navigation devices has fallen the past few years due to higher on the contrary of the automotive in-dash system and the paid navigation on smartphones.
Key figures of 2013
(‘ in millions) % of revenue
REVENUE 963 100%
GROSS RESULT 521 54%
OPERATING EXPENSES 496 51%
EBITDA 143 15%
OPERATING RESULT (EBIT) 26 3%
NET RESULT1 20 2%
NET CASH 83 –
1 Net result of ’49 million in 2012 excludes an ’80 million one-off tax gain.
.
2011 ‘ 1.237
2012 ‘ 1.057
2013 ‘ 963
In the column above you see that revenue decreases each year, which is mainly due to the reason mentioned above and the reason is that the sale of the navigation system decreases.
TomTom is a global organisation because they have headquarters located all over the world, some examples; at Amsterdam Eindhoven, Gent, Lodz, Harsum, London, Massachusetts, Edinburgh, Berlin, Leipzig, Pune and Taiwan. Another reason that underpins mine choice is that they sell their product in more than 40 countries.
TomTom is a company in the private sector, because they are not owned by the government also not supervised by trustees. So TomTom is owned by individuals and shareholders and that means they are a private organisation and they want to make profit.
The organisations belongs to the secondary sector because they have to produce there product with products I mean software products but also fabric products like portable navigation. They belongs to the tertiary sector too because the supply there products or service to the consumers.
History
Peter-Frans Pauwels and Pieter Geelen were just graduated at the University of Amsterdam when they started a company in 1991 named Palmtob. The company Palmtob, developed applications for the first generation of handled computers. In that time most of the applications ware mostly for the business use. Thereafter they started to develop from dictionaries and personal finance to games and route planners. The company grew quickly especially after the great success of the Palm Pilot in 1996, the Palm Pilot was a mobile phone that functioned as a personal information manager. The second reason for the growth was that there was an attendance of the first Microsoft-based devices, and Palm Pilot developed applications for all these new devices. In 2001, Harold Goddijn got the new ‘big’ partner of Palm Pilot. And he gave the company a new name, TomTom. TomTom came with a mobile vehicle navigation system called TomTom Navigator, the TomTom Navigator was a big success. In 2003 TomTom launched a new product called TomTom Navigator, in that period TomTom attracted a new employee named Mark Gretton. Mark Gretton worked for Psion, Psion was a competing company. It was very weird, because they were big rival companies.
But he had a difficult task, he had to develop an all-in -one navigation product. He did well because, a standalone car navigation device, was released in the spring of 2004. In the autumn TomTom brought TomTom Mobile to the market, and navigation application that you can use on your smartphone.
On May 27, 2005 TomTom went to the fair, the proceeds from the IPO (initial public offering) were approximately ‘ 125 million that is a very large sum. Late 2007, the collaboration between TomTom and Toyota was announced, and on February 5, 2009 the collaboration with Renault was announced, these were both big deals.
During Apple’s WWDC on June 8, 2009 it was announced that TomTom would also be available for iPhone. In January 2010, the share price decreased by 10% after it became known that Nokia would come with a free navigation software for phones with a GPS receiver.
This was the history of TomTom broadly
TomTom offers three types of products: navigation devices, in-dashboard navigation and navigation software for mobile phones. Navigation software for mobile phones are
‘ All-in -one navigation devices (also named standalone), examples of standalone devices are the Go C6000 and the Go 50.
‘ Integrated navigation systems, but these are only integrated in the cars of the manufacturers they work with. TomTom works together with Renault and Toyota. the software in the Renault is called Carimat, and the software in the Toyota cars is called TNS400
‘ TomTom Mobile products are for users that want to make a car navigation system from a smartphone or mobile phone. And there is TomTom Navigator software for the users of PDAs , Pocket PCs and iPhones
The products from TomTom are mostly for people for people who travel frequently by car, bicycle or on foot
The company has 3,491 employees consisting of; (data from 2013)
‘ Research and development ‘ 2,265
‘ Marketing ‘ 102
‘ Sales, general and administrative ‘ 1,124 +
‘ TOTAL ‘ 3,491
The revenue for 2013 was ‘963 million. The biggest income of TomTom are the portable
navigation devices. But the demand for the portable navigation devices has fallen the past few years due to higher on the contrary of the automotive in-dash system and the paid navigation on smartphones.
Key figures of 2013
(‘ in millions) % of revenue
REVENUE 963 100%
GROSS RESULT 521 54%
OPERATING EXPENSES 496 51%
EBITDA 143 15%
OPERATING RESULT (EBIT) 26 3%
NET RESULT1 20 2%
NET CASH 83 –
1 Net result of ’49 million in 2012 excludes an ’80 million one-off tax gain.
.
2011 ‘ 1.237
2012 ‘ 1.057
2013 ‘ 963
In the column above you see that revenue decreases each year, which is mainly due to the reason mentioned above and the reason is that the sale of the navigation system decreases.
TomTom is a global organisation because they have headquarters located all over the world, some examples; at Amsterdam Eindhoven, Gent, Lodz, Harsum, London, Massachusetts, Edinburgh, Berlin, Leipzig, Pune and Taiwan. Another reason that underpins mine choice is that they sell their product in more than 40 countries.
TomTom is a company in the private sector, because they are not owned by the government also not supervised by trustees. So TomTom is owned by individuals and shareholders and that means they are a private organisation and they want to make profit.
The organisations belongs to the secondary sector because they have to produce there product with products I mean software products but also fabric products like portable navigation. They belongs to the tertiary sector too because the supply there products or service to the consumers.