Tom Tom is facing significant difficulties as a shift in technology has threatened its major revenue streams. Smartphones are basically giving away for free what TomTom has been charging people a lot of money for, and to nobody's surprise this has resulted in the company losing revenue and taking a loss last year. If TomTom lost money in the first year of the smartphone era, when they were still a niche technology, the writing is on the wall for what will happen when smartphones become saturated in the market.

An examination of the company's strengths, weaknesses, opportunities and threats reveals that all is not hopeless for TomTom, however. There are opportunities within the market that the company can leverage. While its strengths are losing their ability to generate competitive advantage, TomTom is still strong enough to develop new market opportunities for itself. Three different strategic options are presented, based on...
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