In this assignment I’m going to use the resource based view to explain the success of TomTom’s international business strategy. First I’ll start with a short description and history of the company. Thereafter, I will use the VRIO Framework of Barney to analyze the competitive implications and firm performance. In the end I’ll give a short conclusion.
TomTom is the world’s leading supplier of in-car location and navigation products and services focused on providing all drivers with the world’s best navigation experience. Headquarted in Amsterdam, TomTom over 3500 employees and sells its products in more than 40 countries.
TomTom was founded in 1991 with a focus on developing software products for mobile devices. By 1998, TomTom had established themselves as a market leader in PDA software, creating a number of consumer applications for PDAs, such as EnRoute and Citymaps navigation application. In 2001, as more accurate GPS satellite readings became available, they recognized that in-car navigation presented major opportunity’s. TomTom Navigator was launched in 2002 and the first stand-alone portable navigation device (PND), the TomTom GO, was introduced in March 2004. TomTom successfully listed on the NYSE Euronext Amsterdam in May 2005, in order to fund the growth and invest further in R&D. In 2008 TomTom purchased global digital mapping company Tele Atlas for 2 billion euro. In 2008 TomTom launched HD traffic. In 2009 the first fully integrated in-dash product together with Renault was launched, which represented the entry of an in-dash navigation system for the mass market. In September 2012 Apple collaborated with TomTom to provide its mapping data for IOS 6.
The next step is to analyze why the firm is that successful in terms of internal RBV. To be successful a firm must have a competitive advantage. A firm has a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any...
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