Solution Manual For Strategic Management From Confrontation to Transformation Henk W Volberda, Rick M. A. Hollen, Joana R. Pereira, Jatinder S. Sidhu, Kevin Heij Chapter 1-14
Online case study bank Chapter 1: Introduction to strategic management Additional online case: TomTom and competition in the location technology area TomTom competes in the location technology market, primarily with Google, OSM, Mapbox and HERE. Google is the dominant actor and is advantaged by its position in search technology and highly profitable business model. While no firm is likely to displace Google any time soon, a portion of the market prefers not to buy from a competitor or to share customer-applications or other data with Google. OSM has deep and broad map coverage for display applications but has issues with governance, consistency and completeness, which makes OSM ‘as is’ less suitable as a foundation for mission critical (including Automotive) applications. Mapbox, HERE and TomTom are competing for the remaining commercial location technology market with comparable offerings and have a combined turnover of approximately €1.7 billion. The products are comparable but because of different histories have different relative strengths and weaknesses in the product portfolio and market position. The location technology products business is a high fixed-cost business. The three firms are together spending an estimated €1 billion per annum on creating and maintaining a map database, and an estimated €700 million per annum building and maintaining a locationbased services platform. Next to this there is considerable expenditure on bespoke (customer compelled) engineering, sales and marketing. A consolidated P&L of the three competitors will show an estimated combined loss of something between 200 and 300 million per annum on a cash flow basis. TomTom is the only firm to generate (CoronaCOVID-19 Adjusted) positive cash flow.