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Strategy

The best products and services
TomTom strives to lead the navigation industry in terms of innovation and the quality of our products and services. We aim to take navigation to the next level by means of radical advances in three key areas:

Better Maps with instant map corrections and access to the verified corrections of other users, via our unique new TomTom Map Share™ technology.

Better Routes with improved routing via our historical speed data base IQ Routes™, facilitated by our user-portal, TomTom HOME.

Better Traffic Information with high quality, real-time traffic updates delivered via our unique, high quality TomTom HD traffic™ information service.

These three pillars will together transform satellite navigation from a ‘don’t-get-lost solution’ into a true travel companion that gets you from A to B safer, faster, cheaper and better informed. We believe this new generation of satellite navigation solutions will be the must-have item for existing users and a whole new category of motorists, delivering us significant further market penetration.

Going forward, TomTom will remain at the cutting edge of innovation within our industry, by continuing to invest structurally and strategically to bring new and exciting products and services to our customers. The acquisition of Tele Atlas gave us access to new customers for these products, which is important in order to capitalise from R&D investments. By getting access to TomTom technology Tele Atlas can also differentiate its products and create opportunities for up selling.

Building tomorrow's navigation technology
TomTom leads the navigation industry with the technological evolution of navigation products from static ‘find-your-destination’ devices into products and services that provide connected, dynamic ‘find-the-optimal-route-to-your-destination’, with time-accurate travel information. We are well positioned to maintain that leading position over the long-term because of the size of our customer and technology base, our distribution power, and our prominent brand image and recognition. By being vertically integrated and also control the map creation process TomTom is in a unique position to evolve into an integrated content, service and technology business.

Market leadership
TomTom is the world’s leading maker of PNDs. It is our aim to remain or become market leader in every market in which we operate. This leadership position is important to our success, as it delivers the scale advantages necessary for our businesses in terms of competitive market presence and cost base. It also gives us access to big installed base which gives opportunities to collect traffic data and develop de facto standards.

Customer involvement
Leveraging the active involvement of our users is a vital part of our success.

Customer Support – how seriously we take customer support is reflected in the fact that, unlike many technology companies, we do not outsource customer support, but keep it close to our operations at our offices in the Netherlands, the US and Australia, and in Germany for TomTom WORK. This enables us to give our customers the best support possible.

Customer Feedback – customer feedback is an integral part of our product development process, informing how we expand our business and improve our products and services.

User Community – the data we receive via the huge community of TomTom users is helping us deliver our core strategic goal of improving the quality of both navigation and the user’s navigation experience. For example with map improvements, where over one and a half million map corrections have been submitted since the launch of TomTom Map Share™ in the summer of 2007. And with journey times, where the vast majority of the millions of subscribers to our user portal, TomTom HOME, have given us permission to upload their anonymous data and use it to improve the routing algorithm. By controlling the whole chain from map production to the final interface to the user TomTom is in a unique position to stream line the map making process and at the same time produce better maps than ever before.

Flexible business model
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.

Continued growth
We aim to consolidate our leading market share in Europe and to increase our market share in 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. Tele Atlas is important for us to expand geographically since the biggest obstacle today is the lack of digital maps. Mapping new terrain also creates the opportunity to sell PNDs in those markets. At the heart of our success lies the quality of our products and services, and we invest heavily in development to ensure that we continue to develop products that consumers want and that are superior to those of our competitors. Vertical integration will  It is also crucial that consumers recognize and appreciate our 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; Applied Generics Ltd in 2006, which gave us the technology to develop our ground-breaking Mobility Solutions services; and in 2008 the digital map maker Tele Atlas NV which helps facilitate our key business objective to improve the quality of both navigation and the user’s navigation experience. The end result will be superior maps from which the entire navigation industry and, more importantly, consumers will benefit.