The Future of TomTom

TomTom, the company that turned the car navigation system into a mass market consumer service in 2004, remains in 2010, the icon of the navigation industry. It is an industry, however, in which progress is more and more characterized by speed. Fueled by both the smartphone revolution and recession realities, the commoditization of navigation devices and software continues to rise while further PND price erosion is encouraged by free applications offered by Google and Nokia. At the same time (with prices dropping below 500 Euros/$600) the luxury item status once-enjoyed by in-dash navigation systems has downgraded closer to the level of the affordable utility With the shift into this turbulent environment, where Ford, for example, has integrated smartphone-based navigation into more and more of its vehicle stock, it seems to be a good moment to reassess the position and strategy of TomTom.

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