Evaluation of venture performance and proposed structure

What is the estimated future performance of venture?

Who are the likely competitors?

The venture is not based on an important technology development. It involves that every companies selling GPS are likely competitors. As TomTom, corporations like Magellan, Navman, Garmin, Lowrance and some more are selling GPS. In order to spend as possible their market, these corporations sell different products which can be split in three main groups. The first one is composed of the high quality products with lots of options giving all the information a driver would need and making the use easier and faster. In comparison with the average, the price of these devices is high and not every one can afford it. The second group is composed of the devices offering only the minimum functions a driver needs. These devices are a lot cheaper and almost every one who works and owns a car can afford it. Finally the third group is between the first and the second one. These products are for people who want more than the strict minimum but can not afford to expensive devices. The new TomTom product will enable people to access first group quality for the price of a second or third group product. For this reason the new venture will be mostly in competition with the second and third groups.

Where and how should the venture be located within the organization?

Who will form the venture team and who will they report to?

In contrast to services provided by TomTom e.g. traffic updates etc, the TomAd won't sell itself as easy, as more different parties are involved. It is necessary to win enterprises over to advertise via TomAd and to convince customers that the payoff between advertisement and their financial benefit is advantageous for them. For this reason a great capability and knowledge in B2B and B2C relationship is indispensable. This will be ensured by including members from the marketing and sales division in the venture team. From the technical view, TomTom already has almost all the infrastructure they need to realize the venture, say the database infrastructure, GSM/GPRS and the PND itself. Therefore the venture team can be completed with some technical experts from their own R&D team. To combine the new venture with TomTom Map Share, a close collaboration with the developer of this product is therefore needed but as the product is developed in-house, it will be enough to define a contact person from this division. The venture team will certainly have a project leader. It will be the contact person for questions emerging from outside or inside the project. As the venture doesn't involve major technical development but a lot of marketing expertise, the main contact point for the venture will be the marketing responsible for TomTom.