Technologies for mobile commerce and location-based services

The use of mobile telecommunications devices for commercial transactions, called mobile commerce (m-commerce), has been an emerging trend since the late 1990s. A killer application of m-commerce is Location Based Services (LBS). A host of new location-aware applications and services are emerging with significant implications for the future of m-commerce. The early stage infrastructure for enabling these services is just now reaching the commercialization stage. Strategic thinking in this area is rudimentary – there is not a clear understanding of the issues associated with location services, such as business models.


Smartphones v.s GPS navigation devices

The navigation app is a great example of disruptive innovation that is taking over market share from stand-alone GPS devices.

Google Maps Navigation can be installed in mobiles to offer virtually all the features of high-end GPS devices, and it costs nothing—it’s just another free add-on for both Apple and Android systems. As maps are becoming a standard feature in smartphones, handheld devices are truly taking over the navigation market for cars, according to a recent report by market research firm iSuppli.The report indicates that smartphones have already become the most important platform for maps and navigation, and the number of smartphone-based navigation systems will increase tenfold this year, not to mention hitting numbers nearly forty times bigger by 2014

It competes with stand-alone GPS devices on all three value disciplines: It is clearly the cost leader.It is constantly being updated and released, making it the leading innovator as well. And by offering seamless integration with mobile phone contact lists, the web, e-mail, and apps such as Yelp, it likewise wins on the dimension of customer intimacy.

After years of steady growth, the GPS device industry is in a tailspin. The iPhone dominates the market currently for aftermarket navigation by accounting for nearly half of all sales, estimated at 2.9 million applications in 2009. And Apple makes revenue for the sales of navigation apps as it gets a 30 per cent cut from apps sold in its App Store -– $87 million in Apple’s pocket this year, calculated at 5.8 million units with an average price of $50. In comparison, Garmin lost 70% of its market capitalization in the two years after navigation apps were introduced; TomTom nearly 85%.


Big-Bang Disruption

Smart phones, taking over the navigation market


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