Tom Tom

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Author Hoffman, Alan N

Title Tom Tom : new competition everywhere [eReserve]

Published South-Western/Cengage Learning, 2013

Access Online

Tom Tom : new competition everywhere [eReserve]. Pages 180-193 .pdf 1mb

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Note Source: p.180-193 in Hill Charles W.L. and Jones G.R. (2013) Strategic

management : an integrated approach, 10 ed

ISBN: 9781111825843

Other Hill, Charles W. L

Author

Jones, Gareth R

Other Title Strategic management : an integrated approach

TomTom: New Competition Everywhere!

Alan N. Hoffman

Bentley University and Rotterdam School of Management, Erasmus University

Synopsis

TomTom, an Amsterdam-based company that pro-

vides navigation services and devices, leads the navi-

gation systems market in Europe and is second in the US. Its most popular products include TomTom Go and TomTom One for cars, TomTom Rider for bikes, TomTom Navigator (digital maps), and TomTom for iPhone—its most recent release.

The company attributes its market leadership

to its technology, large customer base, distribution

power, and prominent brand image. But as the US

and European personal navigation device market

gets saturated, TomTom's sales growth rate declines.

The company also faces increasing competition

from other platforms using GPS technology like cell

phones and smart phones with a built-in naviga-

tion function. Legal and environmental restrictions

on the digital navigation industry make TomTom's

future even more uncertain....