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Case
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Reference no. 310-104-1
Authors:
Published by:
RSM Case Development Centre (2010)
Revision date:
24-Nov-2014
Length:
24 pages
Data source:
Published sources

Abstract

TomTom, an Amsterdam-based company that provides navigation services and devices, leads the navigation 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 navigation function. Legal and environmental restrictions on the digital navigation industry make TomTom's future even more uncertain. Whether TomTom can keep expanding may well depend on whether it can become the prime mover in creating digital maps and navigational services for developing countries.

Topics

Navigation; GPS; Information services; Radical innovation; Market leader; Branding; Long-term relationship
Location:
Size:
3,300 employees
Other setting(s):
2009-2010

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