BusinessWeek got it Wrong: TomTom Profiled
Seems like BusinessWeek is paying attention to the GPS Navigation Market these days. There’s a decent write-up on TomTom there that walks back through the history of how TomTom formed and how they are doing in the US market. I don’t necessarily agree with their slant on how TomTom is taking over the GPS market while Garmin follows their lead. I have a lot of respect for TomTom, and I do agree that TomTom is an innovative company. Their TomTom PLUS service can and will help them create a relationship with their consumers that will be nearly unbreakable.
Update: See my post on a continuation of this subject - Clarification on BusinessWeek Article
The BusinessWeek article should have painted the real situation as this: the French Company Thales got complacent and let a star brand, Magellan, virtually die just as the GPS market started to take off. Garmin stepped up its R&D in 2004 and took over the US market, eventually capturing 50+% of the market share. At the same time, TomTom innovated in the marketplace and delivered GPS units that have a solid #2 spot in the US and a commanding lead in Europe. I applaud both TomTom and Garmin for their innovations, and am pretty happy to see Magellan on its own away from Thales who let it fall into ruin.
The other thing that has bugged me a bit in the article is that they say, “The most recent attempt by TomTom to upset the balance came in August, with the TomTom One, a compact $499 device that does everything most drivers need from a navigation device, but at a price point not seen before.” Just not true. I guess Arik Hesseldahl, the author, hasn’t seen the Garmin StreetPilot C330 priced on the street at under $400. So, while the TomTom ONE is a great looking package, it’s by far not an entry-level product (sound mid-tier if you ask me), and it’s not the first to offer the features that most people need at a new price point.
Anyway, read the rest at BusinessWeek, just be careful to realize that it has a decidedly TomTom slant to it.
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Posted by Scott Martin at August 28, 2006 2:52 PM
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