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Lesley Small, Brian Dimsdale, Mary McCloud & John Melcher. A Look at Competitive Rivals: Garmin & TomTom. About the Companies . Garmin 1200 E. 151st Street Olathe, KS 66062-3426 United States TomTom Oosterdoksstraat 114 1011 DK Amsterdam The Netherlands. Description of Businesses .
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Lesley Small, Brian Dimsdale, Mary McCloud & John Melcher A Look at Competitive Rivals: Garmin & TomTom
About the Companies • Garmin • 1200 E. 151st StreetOlathe, KS 66062-3426 United States • TomTom • Oosterdoksstraat 114 1011 DK Amsterdam The Netherlands
Description of Businesses Garmin tomtom Founded in 1991 Dutch manufacturer Amsterdam Stock Exchange Four customer facing business units Consumer Automotive Business Solutions Licensing • Founded in 1989 • Incorporated in Switzerland • Global Positioning System Products • Automotive products • Marine units • Aviation technology • Fitness devices • Outdoor recreation • Wireless applications bring the power of GPS to your smart phone
The Industry • navigational, measuring, electromedical, and control instruments manufacturing segment of the computer and electronic product manufacturing industry • www.ibisworld.com
Employment Prospects • The computer and electronic product manufacturing industry employed 1.2 million wage and salary workers in 2008 • The navigational, measuring, electomedical, and control instruments manufacturing segment employed about 441,600 wage and salary workers • 35.4% of the industry • largest percentage of workers and employees of the computer and electronic product manufacturing industry
Employment Prospects continued • Employment in this industry is expected to decline over the next decade. • project 11% increase in all industries for wage and salary employment • the computer and electronic product manufacturing industry employment is expected to decline 19% between 2008 and 2018. • Much of the manufacturing process has been relocated overseas
Employment Prospects continued • Many employment opportunities will continue to rise, even though there is a projected decrease in employment • technological advancements and revolutions that are taking place in computers, semiconductors, and telecommunications, and the need to replace those workers who are retiring from the industry • opportunities in research and development • “Computer software engineers are also in high demand in this industry because many complicated hardware products require software.” (ibisworld)
GARMIN: Strategic and Financial Ratios • Return on Equity 2006: 37.9% 2007: 43.8% 2008: 32.0% 2009: 27.8% 2010: 19.9% • Stock Price 2006: 2.38 2007: 3.95 2008: 3.51 2009: 3.51 2010: 2.97 • Total Assets 2006: 1,897,020 2007: 3,291,460 2008: 2,924,581 2009: 2,393,871 2010: 3,988,688 • Operational Efficiency 2006: 7.5 2007: 8.2 2008: 7.5 2009: 8.0 2010: 7.7 • Share of Industry Value 2007: 28%, 2008: 34%, 2009: 36%
TOMTOM: Strategic and Financial Ratios • Return on Equity 2006: 51.8% 2007: 33.3% 2008: -93.5% 2009: 11.3% 2010: 10.0% • Stock Price(based on closing price of Dec 31) 2006: 32.32 2007: 51.50 2008: 4.30 2009: 6.25 2010: 7.89 • Total Assets 2006: 902,968 2007: 1,969,591 2008: 2,766,690 2009: 2,685,760 2010: 2,622,758 • Operational Efficiency 2006: 12.1 2007: 13.7 2008: 12.1 2009: 14.0 2010: 18.9 • Share of Industry Value 2007: 27%, 2008: 29%, 2009: 30%