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[quote alias=inspirator id=6472960 date=201209162034]
TomTom profit 2.0
In this story you will the insights on how former hardware company TomTom made a disruptive bold move to change its business model, and is now leveraging its content across mobile Apps and Apple devices…
Today, digital maps are hotter than ever before. Mainly due to the fact that accurate GEO locations have become very important for several kinds of services on the fast growing number of smartphones and tablets.
The accurate location of the smartphone user is becoming the epic center of many mobile consumer journeys. GEO location info is helping to get consumers closer to local retail stores, and helping to get them to get into these stores to buy stuff.
In this partnership TomTom will deliver its maps and related services to Apple iOS 6 for iPhone and iPad. From that moment, Apple will let go of Google, which has been the supplier of map- and navigation software on Apple phones.
For TomTom this newly created opportunity is ticket into a new proposition as producer of mapping content and software. End of 2011 TomTom had to let go of 457 employees and dark clouds were coming its way.
It is a great opportunity for TomTom to re-invent and refresh itself. This time not as hardware provider but as producer of map related content and software. It might be a smart move, since the market for single navigation devices is declining by the day.
TomTom is refreshing and re-inventing itself. And in the long term the TomTom stock could be on the rise again. The TeleAtlas acquisition in 2007 seems to be a bold and smart move that might fuel a brighter future for the company.
The partnership with Apple has certainly given investors, analysts and consumers new faith in the company.
To me more important is that TomTom founder Harold Goddijn – who made a fortune after the IPO – is still leading the company. In a recent interview he even stated that working at TomTom is more exciting and challenging than ever before.
And like most founders are the heart and soul of their companies, I am conviced that Goddijn is dedicated to lead his “new” TomTom the way in its path to profit 2.0
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