Thesis

TomTom

First decade

TomTom is founded in 1991 by Pieter-Frans Pauwels, Pieter Geelen, Harold Goddijn and Corinne Vigreux. These four co-founders are currently still working at TomTom. They started as a small start-up company, but because of a good vision and a great policy they managed to become a big multinational (Nilsson, 2011).

At the beginning TomTom was more focused on business-to-business applications, they started with developing software products for mobile devices. These applications were software such as bar-code reading, meter reading and order-entry systems. Later, in 1998, TomTom managed to establish the company as a market leader in PDA software, by creating a number of consumer applications for PDAs. These applications are more commonly known as Routeplanner and citymaps navigation applications.

Because of better satellite techniques, the GPS became more accurate. TomTom recognized a great opportunity for an innovative product for car navigation systems. Their first navigation product for PDAs, the TomTom Navigator, was launched in 2002. They promoted this product not only throughout the Netherlands, but also across Europe. This allowed consumers to buy a great navigation system with a lower price than previously available systems.

TomTom responded on the gap in the market for an easy-to-use car navigation system with an affordable price. In 2003, they made a strategic decision to adapt their core software architecture to operate both on their hardware products and also on third-party hardware systems worldwide. Because of this decision they were capable to develop an all-in-one portable navigation product.

Personal Navigation Devices

The first PND was the TomTom GO, which is introduced in March 2004. This was a mayor chance for the organization. The TomTom GO was with its affordable price and user friendly menu a fit-for-purpose and better than any other navigation systems on the market. With the TomTom GO a new category in its...