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In: Business and Management

Submitted By jere123
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TomTom which is a majorly produce navigation services and devices company which is Dutch by origin and has its headquarters based in Amsterdam. It’s most popular products and major product’s lines includes TomTom Go and TomTom One for cars, TomTom Rider for bikes, TomTom Navigator (digital maps), and TomTom for iPhone. Moreover, it has a large market share in European markets and second in United States. TomTom credits its leadership in the market to technology, prominent brand image, distribution power, and large customer base. However, as the European and US personal navigation device market gets even saturated than before, the company’s sales growth rate start to decline. TomTom is also facing increasing competition from other platforms using GPS technology like cell phones and smart phones with built in navigation systems.
Furthermore, the three major competitors which faced by TomTom are Garmin which have the market share of 45%, Magellan which control 15% of market, and Navico Company which reels in anglers with its high-tech fish finders and keeps hikers and hunters on the right track with its portable location trackers.
Thus, the environmental and legal restrictions on the navigation industry make TomTom’s future prospects desolate. Example of issues face by TomTom includes the use of GPS devices for tracking and theft of PND devices. So, TomTom started responded to these threats by shifting its business mix toward value-added services and in the meantime make its personal navigation devices much smaller portion of total revenue. Hence, to let TomTom able to keep expanding their market and recapture significant growth is likely to depend on whether can it still becoming the prime mover in creating digital maps and navigational services for other developing countries rather than on US and European market.

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