HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeTomTom: Building and marketing a new business conceptback to Marketing

Case Study

TomTom: Building and marketing a new business concept

By Dominique Turpin

19 pages

April 2008

Order this case study

Reference: IMD-5-0735

In early 2008, the top management of TomTom, the world’s leading provider of navigation systems, met to review the strong results of the previous fiscal year. Looking back over the last five years, TomTom’s performance was impressive: The company had created a new industry and its revenues had exploded from €8 million to €1.5 billion However, the business environment was rapidly changing and the management needed to plan the next steps of the company’s future growth. Key issues for TomTom’s management were: How to sustain the company’s growth pace? As the market for navigation systems continued to boom, the company faced more competition and eroded margins. In the near future, a significant piece of its consumer business was likely to turn into an industrial market as more car manufacturers integrate navigation systems into the dashboard. This also raised the question of TomTom’s current business model: how sustainable can it be? How can the Dutch-based company add more services to its product portfolio and having been so successful, how can it prevent its organization from falling into the trap of complacency?

Learning Objective

Developing and launching a product innovation. Creating a new business. Managing growth.

Keywords

Communications

Settings

World/global
2008

Type

Field Research

Available Languages

English

Related material

Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Walk, don’t talk: How to survive culture wars

Global brands expert suggests simple ways for businesses to walk the tightrope between buzz and backlash in today’s divisive cultural and political landscape.

Brand Management Culture Marketing Social Media Strategy Implementation

By Philip Thomas

in I by IMD

Case Study

Hilti Fleet Management: Driving a global transformation

Strategy Marketing Business Transformation Leadership

By Stefan Michel

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

Has Nike lost its stride?

Set in 2024, the case describes the trajectory of Nike's success and how it had recently lost its way. The company was experiencing its worst slump in more than 10 years. Since 2020, CEO Donahoe oversaw a significant shift away from wholesale, wit...

Marketing Digital Strategy

The Case Centre Awards and Competitions 2026 - Outstanding Case Writer Award; Selected for the 2025 John Molson MBA International Case Writing Competition

By Ivy Buche and Goutam Challagalla

Case Study

Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption?

In 2024, the management of Aluminium Cyclo Enterprises (ACE), was concerned that the European Union (EU) export rules for ferrous and non-ferrous scrap were becoming more restrictive. Not just the EU, but close to 43 countries had restricted the e...

Marketing

By Dominique Turpin, Anamaya Narain Singh, Cyril Darlong Diengdoh and Sandeep Puri

Article

Quiz: What are the pitfalls of marketing to women?

Women make more than 80% of purchasing decisions, but most brands struggle to reach, engage, and convert female customers. Do this short quiz to test your knowledge of marketing to women, and read on for tips on avoiding the pitfalls.

Marketing

By Jenny Darroch

in I by IMD Brain Circuits

15 April 2025

Article

China’s pharmaceutical sector: innovation meets demographic-driven demand

Explore how innovation, R&D, and policy reforms are reshaping China’s pharmaceutical sector amid rising healthcare demand and demographic shifts.

China Decision Making Global Business Innovation Marketing

By Mark J. Greeven and Sophie Liu

in I by IMD

Article

6 new roles for marketing managers utilizing AI

As AI systems become increasingly adept at generating creative content across multiple modalities, Michael Yaziji identifies six new roles the marketing manager can undertake to become the orchestrator of an infinitely productive AI team.

Marketing Artificial Intelligence

By Michael Yaziji

in I by IMD Brain Circuits

26 March 2025

Article

You are not your role: How to lead without losing yourself

Taking up a new leadership post can mean a dramatic shift in the way others see you – and how you define yourself. It is vital to learn how to separate your true self from the demands and expectations of the role.

Culture Leadership Marketing Stakeholder Management

By Judy Kent and Alyson Meister

in I by IMD

Walk, don’t talk: How to survive culture wars

By Philip Thomas
in I by IMD

Summary

Global brands expert suggests simple ways for businesses to walk the tightrope between buzz and backlash in today’s divisive cultural and political landscape.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Brand Management

Culture

Marketing

Social Media

Strategy Implementation

Browse all topics

Hilti Fleet Management: Driving a global transformation

By Stefan Michel
Case reference: IMD-2697 ©2025

Summary

The case describes Hilti's transformation from a premium tool maker to a solution provider in commercial construction, while keeping its innovation leadership. Confronting industry pain points such as lost tools, downtime, safety risks and thin margins, Hilti created Fleet Management FM. This subscription bundles NURON tools, repairs, loaners, theft coverage, and Hilti's ON!Track asset management system into predictable monthly payments. IoT connectivity delivers real-time insights on utilization, battery health and maintenance. Moving towards end-to-end optimization E2E, FM digitally connects warehouses, vans and administrative processes, unlocking measurable productivity and margin improvement. FM also operationalizes circularity: productivity analyses right-size tool parks often by 2030 fewer assets, tools are refurbished or donated for a second life, and non-usable materials are recycled via a global network of local partners. The case illustrates how business model innovations with global coverage necessitate fundamental organizational transformations that can take many years. It allows students to develop concise, concrete and convincing value propositions in a B2B market environment. It also facilitates a discussion on solution readiness offering, supplier, contract, and customer and the identification of a sustainable competitive advantage based on the VRIO framework.

Reference IMD-2697

Organization Hilti

Industry Manufacturing, Machinery

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Marketing

Business Transformation

Leadership

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2696 ©2025

Summary

This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The video B case features interviews with three Vanzetti Engineering executives: the marketing director, the CEO and owner and the chief commercial officer. With the shrinking of the automobile industry, the company has had to reposition itself in other industrial sectors where it is significantly smaller than the customers. Vanzetti Engineering embraced some of the codes of luxury branding according to what suited it and ignored others. The company discovered that although it was focused mostly on creating functional value, it had to dwell much more on emotional and societal value creation. The process of brand elevation required a complete cultural transformation, and one of the lessons from the case is that a brand is not a slogan but a way of being and of delivering value.

Reference IMD-2696

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2688 ©2025

Summary

Survey after survey shows that executives think their business is in danger of being commoditized. This means their company is not able to differentiate sufficiently to command higher market prices and profits. Luxury brands, by contrast, are the opposite of commodity. Their whole approach to branding is based on desirability. This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The written A case gives a short background on Vanzetti Engineering, which is facing intensifying competition in an evolving marketplace, and launches the first question for discussion.

Reference IMD-2688

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

Has Nike lost its stride?

By Ivy Buche and Goutam Challagalla
Case reference: IMD-7-2598 ©2025

Summary

The Case Centre Awards and Competitions 2026 - Outstanding Case Writer Award; Selected for the 2025 John Molson MBA International Case Writing Competition

Reference IMD-7-2598

Organization Nike

Industry Consumer Goods, Footwear

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Marketing

Digital

Strategy

Browse all topics

Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption?