Strategic Management Case StudyPresentation

TomTomcasestudy.pdf

Home >Business & Finance homework help >Management homework help >Strategic Management Case StudyPresentation

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 180 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

CASE 14 Synopsis TomTom, an Amsterdam-based company that pro- vides navigation services and devices, leads the navi- gation systems market in Europe and is second in the US. Its most popular products include TomTom Go and TomTom One for cars, TomTom Rider for bikes, TomTom Navigator (digital maps), and TomTom for iPhone—its most recent release.

The company attributes its market leadership to its technology, large customer base, distribution power, and prominent brand image. But as the US and European personal navigation device market gets saturated, TomTom’s sales growth rate declines. The company also faces increasing competition from other platforms using GPS technology like cell phones and smart phones with a built-in naviga- tion function. Legal and environmental restrictions on the digital navigation industry make TomTom’s future even more uncertain. Whether TomTom can keep expanding may well depend on whether it can become the prime mover in creating digital maps and navigational services for developing countries.

TomTom: New Competition Everywhere! TomTom is one of the largest producers of satellite navigation systems in the world, comprised of both stand alone devices and applications. It leads the navigation systems market in Europe while stands second in the United States. TomTom attributes its position as a market leader to the following fac- tors: the size of its customer and technology base; its

distribution power; and its prominent brand image and recognition.19

With the acquisition of Tele Atlas, TomTom has become vertically integrated and also controls the map creation process now. This has helped TomTom establish itself as an integrated content, service and technology business. The company is Dutch by ori- gin and has its headquarters based in Amsterdam, Netherlands. In terms of geography, the company’s operations span from Europe to Asia Pacific, cover- ing North America, Middle East and Africa.19

TomTom is supported by a workforce of 3,300 employees from 40 countries. The diverse work- force enables the company to compete in interna- tional markets.4 The company’s revenues have grown from €8 million in 2002 to €1.674 billion in 2008. However, more recently, because of the Tele Atlas acquisition and the current economic downturn the company has become a cause of concern for investors. On 22nd July 2009, TomTom reported a fall of 61% in its net income at the end of 2nd quarter 2009.3

TomTom is in the business of navigation based information services and devices. The company has been investing structurally and strategically in Re- search and Development to bring new and better products and services to its customers. The compa- ny’s belief in radical innovation has helped it remain at the cutting edge of innovation within the naviga- tion industry.

The vision of TomTom is to improve people’s lives by transforming navigation from a ‘don’t-get-lost so- lution’ into a true travel companion that gets people from one place to another safer, faster, cheaper and better informed. This vision has helped the company to be a market leader in every market place in the satellite navigation information services market.6

TomTom: New Competition Everywhere!

The author would like to thank Will Hoffman, Mansi Asthana, Aakashi Ganveer, Hing Lin, Che Yii for their research. Please address all correspondence to Professor Alan N. Hoffman, Bentley University, 175 Forest Street, Waltham, MA 02452; ahoffman@bentley.edu. Printed by permission of Dr. Alan N. Hoffman.

Alan N. Hoffman Bentley University and Rotterdam School of Management, Erasmus University

C180

25843_case14_ptg01_hr_C180-C193.indd 180 1/20/12 2:03 PM

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 181 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C181Case 14: TomTom: New Competition Everywhere!

used in TomTom Rider are user friendly and come in a variety of languages.3

TomTom Navigator and TomTom Mobile These applications provide navigation software along with digital maps. Both of these applications are compatible with most mobiles and PDAs, pro- vided by companies like Sony, Nokia, Acer, Dell and HP. These applications come with TomTom HOME which can be used to upgrade to the most recent dig- ital maps and application versions.3

TomTom for iPhone On August 17, 2009, TomTom released TomTom for the iPhone. “With TomTom for iPhone, millions of iPhone users can now benefit from the same easy- to-use and intuitive interface, turn-by-turn spoken navigation and unique routing technology that our 30 million portable navigation device users rely on every day,” said Corinne Vigreux, Managing Director of TomTom. “As the world’s leading provider of nav- igation solutions and digital maps, TomTom is the most natural fit for an advanced navigation applica- tion on the iPhone.”6

The TomTom app for iPhone 3G and 3GS users includes a map of the US and Canada from Tele Atlas and is available for $99.99 USD.

The TomTom app for iPhone includes the exclu- sive IQ Routes™ technology. Instead of using travel time assumptions, IQ Routes bases its routes on the actual experience of millions of TomTom drivers to calculate the fastest route and generate the most accurate arrival times in the industry. TomTom IQ Routes empowers drivers to reach their destination faster up to 35% of the time.

Company Background

Company History TomTom was founded as ‘Palmtop’ in 1991 by Peter- Frans Pauwels and Pieter Geelen, two graduates from Amsterdam University, Netherlands. Palmtop started out as a software development company and was involved in producing software for hand held com- puters, one of the most popular devices of the 90s. In the following few years the company diversified

The objectives of the company focus around rad- ical advances in three key areas:

Better Maps: This objective is achieved by maintain- ing TomTom’s high quality map data base that is continuously kept up to date by a large com- munity of active users who provide corrections, verifications and updates to TomTom. This is supplemented by inputs from TomTom’s exten- sive fleet of surveying vehicles.6

Better Routing: TomTom has the world’s largest his- torical speed profile data base IQ Routes™ fa- cilitated by TomTom HOME, the company’s user portal.6

Better Traffic Information: TomTom possesses unique real time traffic information service Tom- Tom HD traffic™ which provides users with high quality, real time traffic updates.6 These three objectives form the base of satellite navigation, working in conjunction to help TomTom achieve its mission.

TomTom’s Products TomTom offers a wide variety of products ranging from portable navigation devices to software navi- gation applications and digital maps. The unique features in each of these products make them truly “the smart choice in personal navigation.”19 Some of these products are described below:

TomTom Go and TomTom One These devices come with a LCD screen that makes it easy to use with fingertips while driving. They provide 1,000 Points of Interests (POI) that help in locating petrol stations, restaurants and places of im- portance. A number of other POIs can also be down- loaded. Precise, up to minute traffic information, jam alerts and road condition alerts are provided by both these devices.3

TomTom Rider These are portable models especially for bikers. The equipment consists of an integrated GPS receiver that can be mounted on any bike and a wireless headset inside the helmet. Similar to the car Portable Navi- gation Devices (PNDs), the TomTom Rider models have a number of POI applications. The interfaces

25843_case14_ptg01_hr_C180-C193.indd 181 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 182 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C182 Section A: Business-Level Strategy

In July of 2007, TomTom bid for Tele Atlas, a company specializing in digital maps. The original bid price of €2 billion was countered by a €2.3 billion offer from Garmin, TomTom’s biggest rival. With TomTom raising the bid price to €2.9 billion, the two companies had initiated a bidding war for Tele Atlas. Although there was speculation that Garmin would further increase its bid price, in the end they decided not to pursue Tele Atlas any further. Rather, Garmin struck a content agreement with Navteq. Fi- nally, TomTom’s shareholders approved the takeover in December, 2007.13

TomTom’s Customers TomTom is a company that has a wide array of cus- tomers each with their own individual needs and de- sires. TomTom has a variety of products to meet the requirements of a large and varied customer base. As an example, their navigational products range from $100–$500 in the United States, ranging from lower end products with fewer capabilities, to high end products with advanced features.

The first group is the individual consumers who buy stand alone portable navigation devices and ser- vices. The second group is automobile manufac- turers. TomTom has teamed up with companies such as Renault to develop built-in navigational units to install as an option in cars. A third group of custom- ers is the aviation industry and pilots with personal planes. TomTom produces navigational devices for air travel at affordable prices. Another group of custom- ers is business enterprises. Business enterprises refers to companies such as Wal-Mart, Target, or Home- Depot; huge companies with large mobile-work- forces. To focus on these customers, TomTom formed a strategic partnership with a technology company called ‘Advanced integrated solutions’ to “optimize business fleet organization and itinerary planning on the TomTom pro series of navigation devices”. This new advanced feature on PNDs offers ways for fleet managers and route dispatchers to organize, plan and optimize routes and to provide detailed mapping information about the final destination. “Every day, companies with mobile workforces are challenged to direct all their people to all the places they need to go. Our customers appreciate having a central web repository to hold and manage all their location and address information,” says Scott Wyatt, CEO of Ad- vanced Integrated Solutions.7 TomTom’s last group

into producing commercial applications including software for personal finance, games, a dictionary and maps. In the year 1996, Corinne Vigreux joined Palmtop as the third partner. In the same year, the company announced the launch of Enroute and RouteFinder, the first navigation software titles. As more and more people using PCs adopted Mi- crosoft’s operating system, the company developed applications which were compatible with it. This helped the company increase its market share. The year 2001 marks the turning point in the history of TomTom. It was in this year that Harold Goddijn, the former Chief Executive of Psion joined the com- pany as the fourth partner. Not only did Palmtop get renamed to TomTom, but it also entered the satel- lite navigation market. TomTom launched TomTom Navigator, the first mobile car satnav system. Since then, as can be seen in Exhibit 1, the company has celebrated the successful launch of at least a product each year.3

In 2002, the company generated revenue of €8 million by selling the first GPS-linked car navi- gator, the TomTom Navigator to PDAs. The up- graded version, Navigator 2 was released in early 2003. Meanwhile, the company made efforts to gain technical and marketing personnel. TomTom took strategic steps to grow its sales. The former CTO of Psion, Mark Gretton, led the hardware team while Alexander Ribbink, a former top marketing official looked after sales of new products introduced by the company.

TomTom Go, an all in one car navigation system, was the next major launch of the company. With its useful and easy-to-use features TomTom Go was included in the list of successful products of 2004. In the same year, the company launched TomTom Mobile, a navigation system which sat on top of smartphones.3

TomTom completed its IPO on the Amsterdam Stock Exchange in May 2005. It raised €469 mil- lion ($587 million) from this offer. The net worth of the company was nearly €2 billion after the IPO. A majority of the shares were with the four partners.5 From the years 2006 to 2008, TomTom strengthened itself by making three key strategic acquisitions. Datafactory AG was acquired to power TomTom WORK through WEBfleet technology, while Applied Generics gave its technology for Mobility Solutions Services. However, the most prominent of these three was the acquisition of Tele Atlas.5

25843_case14_ptg01_hr_C180-C193.indd 182 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 183 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C183Case 14: TomTom: New Competition Everywhere!

TomTom has acquired several patents for all of their different technologies. By having these patents for each of its ideas, the company has protected itself against its competition and other companies trying to enter into the market.

TomTom prides itself on being the innovator in its industry and always being a step ahead of the compe- tition in terms of its technology. On their Website they say, “TomTom leads the navigation industry with the technological evolution of navigation products from static ‘find-your-destination’ devices into products and services that provide connected, dynamic ‘find- the-optimal-route-to-your-destination’, with time- accurate travel information. We are well positioned to maintain that leading position over the long-term because of the size of our customer and technology base, our distribution power, and our prominent brand image and recognition. By being vertically in- tegrated and also control the map creation process TomTom is in a unique position to evolve into an in- tegrated content, service and technology business.”6

TomTom’s has a strong brand name/image. Tom- Tom has positioned itself well throughout the World as the leader in portable navigation devices. It markets its products through its very user-friendly online Web- site and also through large companies such as Best Buy and Wal-Mart. Recently TomTom teamed up with Lo- cutio Voice Technologies and Twentieth Century Fox Licensing & Merchandising to bring the original voice of Homer Simpson to all TomTom devices via down- load. “Let Homer Simpson be your TomTom co-pilot” is just one of the many interesting way’s TomTom mar- kets its products and its name to its consumers.9

TomTom’s Resources and Capabilities The company believes that there are three funda- mentals to a navigation system—digital mapping, routing technology and dynamic information. Based on these requirements three key resources can be identified that really distinguished TomTom from its competition.

The first of these resources is their in-house rout- ing algorithms. These algorithms enable them to introduce technologies like—IQ Routes, that pro- vides “community based information database.” IQ Routes calculate your routes based on the real aver- age speeds measured on roads at that particular time. Their Website says, “The smartest route hour-by- hour, day-by-day, saving you time, money and fuel.”5

of customers is the coast guards. They are able to use Tom-Tom’s marine navigational devices for their everyday responsibilities.

Mergers and Acquisitions TomTom has made various mergers and acquisi- tions as well as partnerships that have positioned the company well. In 2008 TomTom acquired a digital mapping company called Tele Atlas. The acquisition has significantly improve TomTom customers’ user experience and created other benefits for the custom- ers and partners of both companies, including: more accurate navigation information, improved cover- age, and new enhanced features such as map updates and IQ routes which will be discussed in the scarce/ unique resource section of the paper. Commenting on the proposed Offer, Alain De Taeye, Co-founder and CEO of Tele Atlas said:

“. . .the TomTom-Tele Atlas partnership signals a new era in the digital mapping industry. The com- bination of Tom-Tom’s customer feedback tools and Tele Atlas’ pioneering map production processes al- lows Tele Atlas to dramatically change the way digi- tal maps are continuously updated and enhanced. The result will be a completely new level of quality’, content and innovation that helps our partners de- liver the best navigation products. This transaction is not only very attractive to our shareholders but demonstrates our longstanding commitment to- wards all of our partners and customers to deliver the best digital map products available.”1

TomTom also formed a partnership with a com- pany called Advanced Integrated Solutions, adding an itinerary planning and route guidance feature to the pro series of navigation devices to help busi- nesses enterprises with large mobile-workforces. A few years ago they also partnered with Avis, add- ing their user-friendly navigation system to all Avis rental cars. This partnership began in Europe and recently the devices have made their way into Avis rental cars in North America as well many other countries where Avis operates. Harold Goddijn, chief executive officer of TomTom commented:

“Any traveler can relate to the stress of arriving in a new and unfamiliar city and getting horribly lost, with the availability of the TomTom GO 700 we’re bringing unbeatable, full feature car navigation straight into the hands of Avis customers.”2

25843_case14_ptg01_hr_C180-C193.indd 183 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 184 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C184 Section A: Business-Level Strategy

ble Tom-Tom’s market share (24%). Garmin was founded in 1989 by Gary Burrell and Min H. Kao. The company is known for their on-the-go directions since its introduction into GPS navigation in 1989. At the end of 2008, Garmin reported annual sales of $3493.1 million. Last year Garmin competed head-to- head with TomTom in trying to acquire Tele-Atlas for their mapmaking. Garmin withdrew their bid when it became evident that it was becoming too expense to own Tele-Atlas. Garmin executives made a deci- sion that it was cheaper to work out a long-term deal with its current supplier than to try to buy out a com- petitor. Garmin’s current supplier for map services is Navteq which was also acquired by Nokia in 2008.

The second direct competitor is Magellan, which holds 15% of the market share. Magellan is part of a privately held company under the name of MiTac Digital Corporation. Similar to Garmin, Magellan products use Navteq based maps. Magellan was the creator of Magellan NAV 100 that was the world’s first commercial handheld GPS receiver which was created in 1989. The company is also well known for their award-winning RoadMate and Maestro series portable car navigation systems.

Together these three dominant players account for about 85% of the total market. Other competi- tors in the personal navigation device market are: Navigon, Nextar, and Nokia. Navigon and Nextar compete in the personal navigation devices with TomTom, Magellan, and Garmin who are the top three in the industry. But Navigon competes in the high-end segment which retails for more than any of the competitors but offer a few extra features in their PNDs. Nextar compete in the low-end market and its strategy is low cost. Finally, Nokia is men- tion as a competitor in this industry because they recently acquired Navteq who is a major supplier of map services in this industry. Along with that, Nokia has a big market share in the cell phone industry and plans on incorporating GPS technology in every phone making them a potential key player to look at for in the GPS navigation industry.

New Competition Cell Phones Cell phones are a widely used technology by people all around the world. With the 2005 FCC mandate that requires the location of any cell phone used to call 911, phone manufacturers have now included GPS receiver in almost every cell phone.

The second unique resource identified was Tele- Atlas and the digital mapping technology that the TomTom group specializes in. Having the technology and knowledge in mapping that the company brought to TomTom, has allowed them to introduce many unique features to their customers. Firstly, TomTom recently came out with a map update feature. The company recognizes that roads around the world are constantly changing and because of this they used the technology to come out with four new maps each year, one per business quarter. This allows their customers to always have the latest routes to incorporate into their everyday travel. A second feature they recently in- troduced is their MapShare program. The idea behind this is that customers of TomTom who notice mistakes in a certain map are able to go in and request a change be made. The change is then verified and checked di- rectly by TomTom and is shared with the rest of their global user community. “One and a half million map corrections have been submitted since the launch of TomTom Map Share™ in the summer of 2007.”5

The third unique resource identified was auto- motive partnerships with two companies in particu- lar; Renault and Avis. At the end of 2008, TomTom reached a deal with Renault to offer its navigation devices installed in their cars as an option. An article in Auto-week magazine said the following about the deal. “Renault developed its new low-cost system in partnership with Amsterdam-based technology com- pany TomTom, the European leader in portable nav- igation systems. The system will be an alternative to the existing satellite navigation devices in Renault’s upper-end cars.”8 The catch here is the new price of the built in navigation units. The cost of a naviga- tion device installed in Renault’s cars before Tom- Tom was €1,500. Now with TomTom system it costs only €500. As talked about earlier in the paper, Tom- Tom also partnered with Avis back in 2005 to offer its navigation devices, specifically the model GO700 in all Avis rental cars, first starting in Europe and expanding into other countries where Avis operates.

Competition Facing TomTom

Traditional Competition TomTom faces competition from two main compa- nies. The first of these is Garmin which holds 45% of the market share, by far the largest and dou-

25843_case14_ptg01_hr_C180-C193.indd 184 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 185 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C185Case 14: TomTom: New Competition Everywhere!

is almost identical to a product TomTom offers at significantly lower prices.

Physical Maps Physical maps have been the primary option for navigating for decades until technology came around. Physical maps provide detail road information to help a person get from point A to point B. Although cumbersome to use than some of the modern technology alternatives, it is an alterna- tive for people who are not technically savvy or for whom navigation device is an unnecessary luxury that they do not feel the need to spend money on.

Potential Adverse Legislation and Restrictions In the legal and political realm, TomTom is facing two issues that are not critical now, but may have significant ramifications to not only TomTom in the future, but also the entire portable navigation de- vice industry. TomTom’s reactions to each of these issues will determine whether or not there is an op- portunity for gain or a threat of a significant loss will occur.

The most important issue deals with the possible legislative banning of all navigational devices from automobiles. In Australia, there is growing concern over the distraction caused by PNDs and the legis- lature has taken the steps toward banning these de- vices entirely from automobiles.26 There is a similar sentiment in Ontario, Canada where a law that is currently under review would ban all PNDs that were not mounted either to the dashboard or to the windshield itself.27

With the increase in legislation adding to the re- strictions placed on PND devices, the threat that the PND market in the future will be severely limited cannot be ignored. All of the companies within the PND industry, not just TomTom, must create a co- ordinated and united effort to stem this tidal wave of restrictions as well as provide reassurance to the public that they are also concerned with the safe use of their products. An example of this opportunity comes from the toy industry where safety regula- tions are fast and furious at times. Many companies within the toy industry have combined to form the International Council of Toy Industries23 to be proac- tive in regards to safety regulations as well as lobby

Due to this mandate, cell phone manufacturers and cellular services are now able to offer a GPS naviga- tion services through the cell phone for a fee.

ATT Navigator GPS Navigation with AT&T Naviga- tor and AT&T Navigator Global Edition feature real-time GPS enabled turn-by-turn navigation on AT&T mobile Smartphones (iPhone and Blackberry) or static navigation and Local Search on a non-GPS AT&T mobile Smartphone.

ATT Navigator features Global GPS turn-by-turn navigation—Mapping and Point of Interest content for three continents, including North America (U.S., Canada, and Mexico), Western Europe, and China where wireless coverage is available from AT&T or its roaming providers. The ATT Navigator is sold as a subscription service and costs $9.99 per month.

Online Navigation Applications Online navigation Websites that are still popular amongst many us- ers for driving directions and maps are MapQuest, Google Maps, and Yahoo Maps. Users are able to use this free site to get detail directions on how to get to their next destination. In today’s economic downturn many people are looking for cheap, or if possible free solutions to solve their problems. These online Websites offer the use free mapping and navi- gation information that will allow them to get what they need at no additional costs. However, there are down-sides to these programs, “such as they are not portable and may have poor visualization designs (such as vague image, or text-based).”12

Built-In Car Navigation Devices In car navigation de- vice first came about in more luxury, high-end vehicles. In today’s market it has become more main- stream and now being offered in mid to lower tier vehicles. These built-in car navigation devices offer similar features to the personal navigation device but don’t have the portability so you won’t have to carry multiple devices but come with a hefty cost. Some examples of these are Kenwood, Pioneer, and Eclipse units all installed into your car. These units tend to be expensive and over-priced because of the fact that they are brand name products and require physical installation. For example, the top of the line Pioneer unit is $1,000 for the monitor and then an- other $500 for the navigation device plus the physi- cal labor. When buying such products, a customer is spending a huge amount of money on a product that

25843_case14_ptg01_hr_C180-C193.indd 185 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 186 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C186 Section A: Business-Level Strategy

in regular cellular phones. TomTom will be hard pressed to compete with these multifunctional devices unless they can improve upon their de- signs and transform themselves into just a single focused device.

Another concern not only for TomTom, but for every company that relies heavily on GPS technol- ogy, is the aging satellites that support the GPS system. Analysts predict that these satellites will be either replaced or fixed before there are any issues, but this issue is unsettling due to the fact that Tom- Tom has no control over it24. TomTom will have to devise contingency plans in case of catastrophic fail- ure of the GPS system much like what happened to Research in Motion when malfunctioning satellites caused disruption in their service.

Currently TomTom is one of the leading com- panies in the PND markets in both Europe and the United States. Although they are the leader in Europe, that market is showing signs of becoming saturated, and even though the U.S. market is cur- rently growing, TomTom should not wait for the inevitable signs of that market’s slowdown as well. TomTom needs to be proactive to the next big mar- ket instead of using its large resources to become a fast follower.

The two main opportunities for TomTom to ex- pand, creating digital maps for developing countries and creating navigational services can either be pig- gybacked one on top of each other or can be taken in independent paths. The first-mover advantage for these opportunities will erect a high barrier of entry for any companies that do not have large amounts of resources to invest in the developing country. Tom- Tom is already playing catch-up to Garmin and their already established service in India. Being proactive is an important and valuable opportunity that Tom- Tom should take advantage of.

Globalization of any company’s products does not come without a certain set of issues. For Tom- Tom, the main threat brought on by foreign coun- tries is two fold. The first threat which may be an isolated instance, but could also be repeated in many other countries is the restriction of certain capabili- ties for all of TomTom’s products. Due to security and terrorism concerns, GPS devices are not allowed in Egypt since 200328. In these times of global terror- ism TomTom must be vigilant of the growing trend for countries to become overly protective of foreign companies and their technologies.

governments on behalf the toy industry against laws that may unfairly threaten the toy industry23.

The other issue within the legal and political spectrum that TomTom must focus on is the grow- ing use of GPS devices as tracking devices. Currently, law enforcement agents are allowed to use their own GPS devices to track the movements and locations of individuals they deem to be suspicious, but how long will it be before budget cuts reduce the access to these GPS devices and then the simple solution will be to use the PND devices already installed in many automobiles?

This issue also requires the industry as whole to proactively work with the consumers and the gov- ernment to come to an amicable resolution. The threat of having every consumer’s GPS information at the finger tips of either the government or sur- veillance company will most certainly stunt or even completely halt any growth within the PND industry and that is why the industry must be on the offensive and not become a reactor.

Another alarming trend is the rise in PND thefts around the country22. With the prices for PNDs at a relatively high level, thieves are targeting vehicles that have visible docking stations for PNDs either on the dashboard or windshield. The onus will be on TomTom to create new designs that will help not only hide PNDs from would-be thieves but also de- ter them from ever trying to steal one. Consumers who are scared to purchase PNDs because of this rise in crime will become an issue if this problem is not resolved.

There is also a trend currently that is labeled the GREEN movement,29 that aims to reduce any activi- ties that will endanger the environment. This move- ment is a great opportunity for TomTom to tout its technology as the smarter and more environmentally safe tool if driving is an absolute necessity. Not only can individuals tout this improved efficiency, but more importantly on a larger scale, businesses that require large amounts of materials to be transported across long stretches can show activists that they too are working to becoming a green company.

It is ironic that the core technology used in Tom- Tom’s navigation system, the GPS system, is prolif- erating into other electronic devices at such a rapid pace that it is causing serious competition to the PND industry. GPS functionality is virtually a re- quirement for all new smartphones that enter the market and soon will become a basic functionality

25843_case14_ptg01_hr_C180-C193.indd 186 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 187 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C187Case 14: TomTom: New Competition Everywhere!

TomTom experienced steep decline of 40% and 68%.(Exhibit 4) This could be a consequence of compounded effect of the following—Firstly, the number of devices (PNDs) decreased by a similar amount both the time periods. And secondly, the average selling price of PNDs has also been de- creasing consistently. In a technology company a decrease in average selling price is a part and par- cel of doing business in a highly competitive and dynamic market place. Nevertheless, the revenue stream from business units other than PNDs has seen a steady increase in both the scenarios.

Revenue per region: TomTom’s per region revenue stream can be further divided into Eu- rope, North America and the rest of the world. Comparing first quarter of 2009 against 2008 it can be seen that, revenue from both Europe and North America are on decline, with a de- crease of 22% and 52% respectively (Exhibit 5). At the same time, revenue from rest of the world has seen a huge increase of 90%. Both of these analyses support TomTom’s current objective to increase their revenue base and is aligned with their long-term strategy of being a leader in nav- igation industry.

2. Long term debt—In 2005 TomTom was cash- rich company but the recent acquisition of Tele Atlas which amounted to €2.9 billion and was funded by cash, release of new shares as well as long term debt, which is in this case a borrow- ing of €1.2 billion. Currently, TomTom’s debt is €1,006 million.

3. Operating Margin—TomTom saw a consis- tent increase in operating margin till 2006 (exhibit 7). But since 2007 operating margin has been decreasing for the firm. In fact, by the end of 2008 it came down to 13% compared to 26% in 2006.

Marketing Traditionally high quality and ease of use of solu- tions have been of utmost importance to TomTom. In 2006, in an interview, TomTom’s Marketing Head Anne Louise Hanstad, could not have emphasized more on the importance of simplicity and ease of use of their devices. (Hanstad) This underlines the TomTom’s belief that—“People prefer fit for purpose devices that are developed and designed to do one specific thing very well.” At that time both of these

Internal Environment

Finance TomTom’s current financial objectives are to diver- sify and become a broader revenue based company. The company not only seeks to increase the revenue base in terms of geographical expansion but also wants to diversify its product and service portfolio. Additionally, another important goal the company strives to achieve is to reduce its operating expenses.

Sales Revenue and Net Income In Exhibit 2 it can be observed that from 2005 to 2007 there is a consis- tent growth in sales revenue and a corresponding increase in net income too. However, year 2008 is an exception to this trend. In this year sales revenue decreased by 3.7% and the net income decreased by 136%. In fact, in the first quarter the net income is actually negative totaling -€37 million. The de- crease in sales can be accounted by the downturn in the economy. Actually, according to their 2008 annual report, the sales are in line with their expec- tations from the market. However, the net income plummeted much more than the decrease in sales. This was actually triggered by its acquisition of a digital mapping company—Tele Atlas, which was funded by both cash assets and debt.

1. Quarterly sales—In second quarter of 2009 TomTom received sales revenue of €368 mil- lion compared to €213 million in first quarter and €453 million in the same quarter last year. (Exhibit 3) By evaluating quarterly sales for a three year period from 2007 till present, it is ap- parent that the sales do follow a seasonal trend in TomTom. With highest sales in last quarter and lowest in the first quarter. However, fo- cusing on just the first and second quarter for three years one can infer that the sales revenue as a whole is also going down year after year. To investigate further on the causes of this sce- nario we will have to delve deeper into its rev- enue base. TomTom’s sources of revenue can be broadly grouped into two categories—market segment and geographic location.

Revenue per segment: TomTom’s per seg- ment revenue stream can be divided into PNDs and others, where others consist of services and content. Evaluating first quarter of 2008 against that of 2009 and last quarter of 2008,

25843_case14_ptg01_hr_C180-C193.indd 187 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 188 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C188 Section A: Business-Level Strategy

essential to its long term goal of innovation. In 2008, J.D. Power associates recognized TomTom for pro- viding outstanding customer service experience.18 Although, it awarded TomTom for customer service satisfaction, J.D. Power and associates ranked Gar- min highest in overall customer satisfaction. Tom- Tom followed Garmin in the ranking, performing well in the routing, speed of system and voice direc- tion factors.16

As mentioned previously, when the navigation industry was still in its embryonic stages—Features, ease of use and high quality of its solutions gave TomTom products a competitive edge. Eventually, the competition increased in the navigation industry and even substitutes pose substantial threat to market share now. Currently, TomTom offers PNDs in differ- ent price ranges, broadly classified into— high-range and mid-range PNDs, with an average selling price of €99. There are entry-level options that allow a savvy shopper to put navigation in his/her car for just over $100. Higher-end models add advanced features and services previously described.

TomTom sells its PNDs to consumers through re- tailers and distributors. After acquiring Tele Atlas it is strategically placed to gain the first mover advan- tage created by its rapid expansion of geographical coverage.19 This is of key importance when it comes to increasing the global market share.

TomTom directs its marketing expenditure to- wards B2B advertising that is direct to retailers and distributors. TomTom also invested in an official blog Website as well as search optimization which places it in premium results in online searches. This has enabled TomTom to do effective word-of-mouth promotion while keeping flexible marketing spend- ing, in accordance to changes in the macroeconomic environment or seasonal trends19. Although, this approach gives it spending flexibility, it lacks a di- rect B2C approach. Currently only 21% US adults own PNDs while 65% US adults neither own nor use navigation14. By not spending on B2C marketing TomTom is discounting on the opportunity both to attract first-tier noncustomers and glean an insight of needs of second-tier noncustomers.17

Operations The focus of operations has always been on innova- tion. More recently, TomTom’s operational objective is to channel all the resources and core capabilities

were core to the TomTom’s strategy as their targeted customers were early adopters, but now as naviga- tion industry has moved from embryonic to a growth industry TomTom’s current customers are early ma- jority, and hence, simplicity and ease alone could no longer provide it with competitive advantage.

Recently, to be in line with its immediate goal of diversifying into different market segment, TomTom is more focused on strengthening its brand name. In December 2008, TomTom’s CEO stated—“. . .we are constantly striving to increase awareness of our brand and strengthen our reputation for providing smart, easy-to-use, high-quality portable navigation products and services.”19

Along with Tele Atlas the group has gained the depth and breadth of expertise over the last 30 years, and this makes it a trusted brand. Three out of four people are aware of the brand of the TomTom business across the markets. The Tom- Tom group has always been committed to three fundamentals of navigation—mapping, routing algorithm and dynamic information. Tele Atlas’ core competency is the digital mapping database and TomTom’s is routing algorithms and guidance services using dynamic information, and the group together create synergies that enable them to intro- duce products almost every year advancing on one or a combination of these three elements. Acquiring their long time supplier of digital maps, Tele Atlas, in 2008 gives them an edge with in-house digital mapping technology.

TomTom provides a range of PND devices like— TomTom One, TomTom XL and TomTom Go Series. Periodically, it tries to enhance those devices with new features and services, that they build based on the feedback from customers. Examples of services are—IQ routes and LIVE services. While IQ routes provides drivers with the most efficient route plan- ning; accounting for situations as precise as speed bumps and traffic lights, LIVE services forms a range of information services delivered directly to the LIVE devices. The LIVE services bundle includes Map Share and HD Traffic—that is bringing the content collected from vast driving community directly to the end user.

These products and services accentuate effective designs and unique features, and require TomTom to work along with its customers to share precise up- dates and also get feedback for future improvements. Hence, effective customer interaction becomes

25843_case14_ptg01_hr_C180-C193.indd 188 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 189 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C189Case 14: TomTom: New Competition Everywhere!

increased TomTom’s dependency on the network of the connected driving community. Bigger the net- work will be, the more effective would be the infor- mation from the guidance services.

Furthermore, in order to reduce operating expenses and strengthen the balance sheet, undue emphasis has been placed on the cost cutting program. Currently the cost reductions are made up of— Reduction of staff, Restructuring and integration of Tele Atlas, Reduced discretionary spending and Reduction in the number of contractors and Marketing spenditures. However, if not exceuted wisely it could hamper TomTom’s long term objective of being a market leader. For ex- ample one of the core capabilities of any technology company is its staff; reducing it can hinder future in- novative projects. Likewise, reducing the marketing expenditures in a market which still holds rich pros- pects of high growth. There are still 65% of US adults who don’t own any kind of navigation system either a device, or in-car, or that of phone.14

Human Resources Like any other technology company success of in- dividual employees is very important to TomTom. Additionaly, TomTom has a vision that success for TomTom as a business should also mean success for the individual employee. Therefore, at TomTom, em- ployee competency is taken very seriously and talent development programs are built around it. There is a personal navigation plan that provides employees with a selection of courses based on competencies in their profile. In 2008 TomTom completed its Young Talent Development Program which was aimed at broadening the participants’ knowledge, while im- proving their technical and personal skills.

to create economies of scale so as to be aligned with their long term strategy. TomTom aims to focus and centralize R&D resources to create scale econo- mies to continue to lead the industry in terms of innovation.19

Implementation of this strategy is well underway and the changes are visible. By second quarter of 2009 mid-range PNDs were introduced with capa- bilities from high-range devices, 50% of PNDs were soldwith IQ Routes Technology, first in-dash prod- uct was also launched in alliance with Renault and TomTom iPhone application was also announced19.

After aquiring Tele Atlas, to better support the broader navigation solutions and content and ser- vices, the group underwent restructuring. New orga- nization structure consists of four business units, that have clear focus on a specific customer group and are supported by two shared development centers.

TomTom’s supply chain and distribution model is outsourced. This increases TomTom’s ability to scale up or down the supply chain, while limiting capital expenditure risks. But, at the same time, it depends on a limited number of third parties and in certain instances sole suppliers, for component supply and manufacturing, which increases its dependency on these suppliers.

TomTom’s dynamic content sharing model uses high quality digital maps along with the connected services, like HD Traffic, Local Search with Google and weather information, provides our customers with relevant real-time information at the moment they need it, and this is helping them deliver the benefits of innovative technology directly to the end user and that to now at affordable prices. Although, the network externalities previously mentioned are one of the advantages of TomTom’s LIVE, it has also

TOMTOM GROUP

SHARED TECHNOLOGIES

DYNAMIC CONTENT & PUBLISHING

TOMTOM

B2C

Consumers Commercial fleets

B2B

WORK

Car industry Car industry suppliers

B2B

AUTOMOTIVE

PND Automotive Mobile Internet GIS

B2B

TELE ATLAS

25843_case14_ptg01_hr_C180-C193.indd 189 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 190 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C190 Section A: Business-Level Strategy

these days are applications. Because of the ease of developing software on platforms for smartphones, more and more competitors are coming to the fore- front and developing GPS navigation application.

For TomTom, both of these sectors might sig- nal major change is in the horizon and that there is no longer a need for hardware for GPS navigation devices. And that we’re heading towards a culture where consumers want an all-in-one device such as cell phone or Smartphone that will do everything they need including a GPS navigation services. In a recent study done by Charles Golvin for Forrester, he believes that by 2013 phone-based navigation will dominate the industry. And the reason is due to Gen Y and Gen X customers who are increasingly reliant on their mobile phone and who will demand social networking and other connected services integrated into their navigation experience14.

The other problem TomTom is facing is a mature US & European personal navigation device market. After 3 years of steady growth in the PND market, TomTom has seen decreasing growth rate for PND sales. There could be many factors that are causing this such as the world wide recession but we felt that base on sales figure we’re seeing the same trend in the US market as we have seen in the European market for TomTom. Initially entering the European market 12 months before entering the US market, TomTom has seen 21% dip in sales for the European market. Although, TomTom experiences some growth in the US market for 2008, they are noticing the growth rate has not been as good as the prior years.

TomTom’s motto is to do business efficiently, profitably as well as responsibly. This underlines its corporate social responsibility. TomTom’s headquar- ters is one of the most energy efficient buildings in Amsterdam. As mentioned before, earlier navigation was oriented towards making the drivers arrive their their destintion without getting lost. TomTom was the pioneer in introducing different technology that actually helps drivers to make their journeys safer and more economical. This shows their commitment to their customer base as well as to the community as a whole.

Issues of Concern for TomTom First, TomTom is facing increasing competition from other platforms using GPS technology. Two main areas that come to mind are cell phones and smartphones. In the cell phone industry, Nokia is leading the charge in combing cell phone technol- ogy with GPS technology. They have a plan to put GPS technology in all their phones. Around the same time TomTom acquired Tele Atlas, Nokia also pur- chased Navteq, a competitor to Tele Atlas. With the acquisition of Navteq, Nokia hopes to shape the cell phone industry by merging cell phone, internet, and GPS technology together.

As we see the Smartphone industry emerging with the IPhone and the Palm Pre, we also see a shift in how people are able to utilize these technologies as a navigation tool. A big trend in smartphones

Navigator TomTom GO

WORK & Mobility

Solutions

Teleatlas

HDTraffic & MapShareIPONavcoreRenamedFounded

1st PDA

1991 2007200520032001

1996 2002 2004 2006 2008

Exhibit 1 Company history

25843_case14_ptg01_hr_C180-C193.indd 190 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 191 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C191Case 14: TomTom: New Competition Everywhere!

Year Historical Event

1991 Palmtop founded by Harold Goddijn, Peter-Frans Pauwels and Pieter Geelen.

1994 Corinne Vigreux joined the Company to sell Palmtop applications in Europe.

1996 First navigation software for PDAs, EnRoute and RouteFinder launched.

2001 Palmtop renamed TomTom. Harold Goddijn joins TomTom as CEO. Number of employees 30.

2002 First GPS-linked car navigation product for PDAs, TomTom NAVIGATOR shipped. €8 million revenue.

2003 NavCore Software Architecture developed, on which all TomTom products are still based. Number of employees 90.

2004 First portable navigation device shipped, the TomTom GO. 248,000 PND units sold.

2005 TomTom listed on Euronext Amsterdam. €720 million revenue.

2006 TomTom WORK and TomTom Mobility Solutions launched. Number of employees 818.

2007 TomTom makes offer for Tele Atlas. TomTom HD Traffic and TomTom Map Share launched. 9.6 million PND units sold.

2008 TomTom acquired Tele Atlas.

Source: http://investors.tomtom.com/overview.cfm

Exhibit 1 (continued)

2,000,000

1,500,000

−1,500,000

1,000,000

−1,000,000

500,000

−500,000

0 2005 2006 2007

Sales Net Income

2008

Exhibit 2 Sales Revenue and Net Income (€)

800

600

100

700

200

500

300

400

Q1 Q2 Q3

2009 2008 2007

Exhibit 3 Quarterly sales (in millions €)

(in € millions) Q1’09 Q1’08 y.o.y Q4’08 q.o.q

Revenue 172 264 235% 473 264%

PNDs 141 234 240% 444 268%

Others 31 29 5% 29 5%

# of PNDs sold (in thousands)

1,419 1,997 229% 4,443 268%

Average selling price (€)

99 117 215% 100 21%

Exhibit 4 Revenue per segment

(in € millions) Q1’08 Q1’09 Difference

Europe 178,114 146,549 222%

North America 84,641 55,558 252%

Rest of world 1,087 10,976 90%

Total 263,842 213,083 224%

Exhibit 5 Revenue per region

25843_case14_ptg01_hr_C180-C193.indd 191 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 192 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C192 Section A: Business-Level Strategy

Appendix: GooGle drives into nAviGAtion MArket rueters

Wed Oct 28, 2009 11:30 am EDT

SAN FRANCISCO (Reuters)—Google Inc. is add- ing Garmin Ltd and TomTom to its growing list of rivals as the Internet search giant weaves technology for driving directions into new versions of its smart- phone software.

Google said its new Google Maps Navigation product will provide real-time, turn-by-turn direc- tions directly within cell phones that are based on the new version of its Android software.

The navigation product, which features speech recognition and a visual display that incorporates Google’s online archive of street photographs, marks the latest step by Google to challenge Apple Inc’s iPhone and Microsoft Corp’s Windows Mobile soft- ware with its Android smartphone software.

It also represents a direct competitive threat to companies like Garmin and TomTom which sell

specialized hardware navigation devices. TomTom also makes a software navigation app for the iPhone that sells for $99.99 in the U.S.

Google executives told reporters at a press brief- ing on Tuesday ahead of the announcement that the company decided to offer turn-by-turn driving di- rections in its four-year-old maps product because it was the most requested feature by users.

CEO Eric Schmidt said that expanding into a new market with new competitors was not a part of Google’s motivation.

“Those are tactical problems that occur after the strategic goal which is to offer something which is sort of magical on mobile devices using the cloud,” Schmidt said.

The new navigation service will work with Google’s forthcoming Android 2.0 software, the

30%

25%

20%

10%

15%

2005 2006 2007

Operating Margin

2008

12/31/2005 12/31/2006 12/31/2007 12/31/2008 6/30/2009

Long Term Debt 301 338 377 4,749 4,811

Cash Assets 178,377 437,801 463,339 321,039 422,530

Borrowings 0 0 0 1,241,900 1,195,715

Exhibit 6 Cash versus Long term debt (in thousand €)

Exhibit 7 Operating Margin

25843_case14_ptg01_hr_C180-C193.indd 192 1/20/12 2:03 PM

# 108137 Cust: Cengage Au: Hill Jones Pg. No. 193 Title: Strategic Management Server:

C/M/Y/K Short / Normal / Long

DESIGN SERVICES OF

S4-CARLISLE Publishing Services

C193Case 14: TomTom: New Competition Everywhere!

Google said the product, which will initially be limited to driving directions in the U.S., will be free for consumers.

next version of the smartphone operating system developed by Google. The company announced development tools for Android 2.0 on Tuesday, but a spokeswoman said specific details about when Android 2.0 will be available should be directed to phone-makers and wireless carriers.

Bibliography

1. TeleAtlas Press Release. <http://www.teleatlas.com/ W h y Te l e A t l a s / P r e s s r o o m / P r e s s R e l e a s e s / TA _ CT015133>.

2. TomTom press release. TomTom and Avis Announce the First Pan-European Deal to Provide TomTom GO.

3. Compare GPS Sat Nav Systems. <http://www. satellite navigation.org.uk/gps-manufacturers/tomtom/>; Daniel, Robert. TomTom Net Fell 61%, Revenue Off 19%. <http://www.foxbusiness.com/story/markets/industries/ telecom/tomtom-net-fell—revenue/>.

4. TomTom Challenge. <http://www.tomtomchallenge.nl/ r e s o u r c e s / A M G A T E _ 4 0 0 0 8 3 _ 1 _ T I C H _ R76719135691/>.

5. TomTom NV. <http://www.answers.com/topic/tomtom- n-v>.

6. TomTom. TomTom, portable GPS car navigation sys- tems. <http://investors.tomtom.com/overview.cfm>.

7. Advanced Integrated Solutions. TomTom and Advantage Integrated Solutions Partner to Deliver an Intelligent Fleet Routing Solution for Businesses. March 2009. <http:// www.highbeam.com/doc/1G1-196311252.html>.

8. Auto-Week Article. Renault, TomTom promise cheap nav- igation. <http://www.autoweek.com/article/20080929/ free/809299989#ixzz0MQ8bKdYo>.

9. Boston Business Article. <http://www.boston.com/business/ ticker/2009/06/let_homer_simps.html)>.

10. Garmin Website. <http://www8.garmin.com/about Garmin/>.

11. Gis Development Article. <http://www.gisdevelopment. net/technology/lbs/techlbs008.htm>.

12. Magellan Website. <http://www.magellangps.com/about/>. 13. Thomson Reuters. TomTom launches 2.9 bln euro

bid for Tele Atlas. 19 November 2007. <http:// www.reuters.com/article/technology-media-telco-SP/ idUSL1839698320071119>.

14. Forrestor Research. “Phone-Based Navigation Will Dominate By 2013.” 27 March 2009.

15. Hanstad, L. Anne. TomTom VP of Marketing Fletch. 27 September 2006.

16. J.D. Power and Associates. Garmin Ranks Highest in Customer Satisfaction with Portable Navigation Devices. 23 October 2008. <http://www.jdpower.com/corporate/ news/releases/pressrelease.aspx?ID=2008221>.

17. Kim, W. Chan and Mauborgne. Blue Ocean Strategy. Boston: Harvard Business School Press, 2005.

18. Reuters. TomTom Inc. Recognized for Call Center Cus- tomer Satisfaction Excellence by J.D. Power. 7 January 2008. <http://www.reuters.com/article/pressRelease/ idUS141391+07-Jan-2008+PRN20080107>.

19. TomTom AR-08. “TomTom Annual Report 2008.” Tom- Tom Annual Report 2008. December 2008.

20. TomTom Q2 2009. “Investor relations.” TomTom Website. <http://investors.tomtom.com/reports.cfm?year=2009>.

21. Foley, Ryan. Chicago Tribune. 7 May 2009. 29 July 2009 <http://archives.chicagotribune.com/2009/may/07/ news/chi-ap-wi-gps-police>.

22. GPS Magazine. GPS Magazine. 23 September 2007. 29 July 2009 <http://gpsmagazine.com/2007/09/gps_ thefts_rise.php>.

23. ICTI. ICTI. 2009. 29 July 2009 <http://www.toy-icti.org/>. 24. Jones, Nick. Garnter. 5 January 2009. 29 July 2009

<http://www.gartner.com/resources/168400/168438/ findings_risks_of_gps_perfor_168438.pdf>.

25. PriceGrabber.com. Price Grabber. April 2007. 29 July 2009 <https://mr.pricegrabber.com/2007_GPS_Pricing_ Trends_Report.pdf>.

26. Richards, David. Smarthouse. 17 June 2009. 29 July 2009 <http://www.smarthouse.com.au/Automotive/ Navigation/P4P3H9J8>.

27. Talaga, Tanya and Rob Ferguson. TheStar.com. 28 Oct 2008. 29 July 2009 <http://www.thestar.com/News/ Ontario/article/525697>.

28. US News. US News. 14 October 2008. 29 July 2009 <http://usnews.rankingsandreviews.com/cars-trucks/ daily-news/081014-GPS-Devices-Banned-in-Egypt/>.

29. Webist Media. Web Ecoist. 17 August 2008. 29 July 2009 <http://webecoist.com/2008/08/17/a-brief-history- of-the-modern-green-movement/>.

25843_case14_ptg01_hr_C180-C193.indd 193 1/20/12 2:03 PM