TomTom becomes a stable investment again through their meticulous new product development programme and recent purchase of Tele Atlas. Like other satellite navigation systems the share price of TomTom may have fallen recently, but now they are building a solid growth platform for the future. One of the main beneficiaries of the company’s continued successes have been the many charities support by co-founder Pieter Geelen.
The much publicised take over of global digital mapmakers, Tele Atlas was seen as a shrewd purchase by TomTom. Since Tele Atlas is one of only two digital mappers, the takeover allows TomTom greater control of costs and licensing opportunities.
TomTom is also profiting by enabling consumer personalisation of their devices, through custom map and “celebrity voice” addons. They are also leading the market with innovations including TomTom LIVE, a system of real-time traffic updates and route re-calculations. They have also formed partnerships to allow for web-based information services to direct you to the nearest take-away, Chinese restaurant or newsagent and intuitive applications to calculate and direct you to the cheapest fuel outlets.
With a sound strategic business model, philosophy and programme of innovation TomTom remains a prudent long-term investment. One hidden group of winners along with the shareholders are the charities supported by Pieter Geelen. A Dutch magazine recently named him as one of the most generous philanthropists in the Netherlands having given away an estimated €132m to good causes and more recently through The Turing Foundation. The primary aims of the Foundation revolve around an eclectic mix of causes; leprosy, education, nature conservation and art are all close to Pieter Geelen’s heart with each area operating independently and having its own individual goals, budgets and strategy. The foundation was awarded the official Charity status by the Dutch fiscal authority in 2006.
Tue, Feb 10, 2009
Financial News