TeleNav 2015 Annual Report Download - page 23

Table of Contents
use of data to target ads and communication with consumers via mobile devices. To the extent that we or our clients are subject to new law or
recommendations or choose to adopt new standards, recommendations, or other requirements, we may have greater compliance burdens. If we
are perceived as not operating in accordance with industry best practices or any such guidelines or codes with regard to privacy, our reputation
may suffer and we could lose relationships with advertiser or developer partners.
We operate in a highly competitive market, including competitors that offer their services for free, which could make it difficult for us to
acquire and retain customers and end users.
The market for development, distribution and sale of location services is highly competitive. Many of our competitors have greater name
recognition, larger customer bases and significantly greater financial, technical, marketing, public relations, sales, distribution and other
resources than we do. Competitors may offer mobile location services that have at least equivalent functionality to ours for free. For example,
Google offers free voice-guided turn by turn navigation as part of its Google Maps product for mobile devices, including those based on the
Android and iOS operating system platforms, and Apple offers proprietary maps and voice-guided turn by turn directions. Microsoft also
provides a free voice-guided turn by turn navigation solution on its Windows Mobile and Windows Phone operating systems. Competition from
these free offerings may reduce our revenue, result in our incurring additional costs to compete and harm our business. If our wireless carrier
customers can offer these mobile location services to their subscribers for free, they may elect to cease their relationships with us, like Sprint did,
or alter or reduce the manner or extent to which they market or offer our services or require us to substantially reduce our fees or pursue other
business strategies that may not prove successful. In addition, new car buyers may not value navigation solutions built in to their vehicles if they
feel that free (brought-in) offerings, for example Apple CarPlay or Google's auto initiatives, including Open Automotive Alliance, are adequate
and may not purchase our solutions with their new cars.
Our primary competitors include location service providers such as Apple, Google (including Waze), Microsoft, Nokia, TCS, and
TomTom; PND providers such as Garmin and TomTom; providers of Internet and mobile based maps and directions such as AOL, Apple,
Mapquest, Google, Microsoft, Yahoo, Yelp, Foursquare and Fullpower; and wireless carriers and communication solutions providers developing
their own location services. In the automotive navigation market, we compete with established automotive OEMs and providers of on-board
navigation services such as AISIN, Bosch, Elektrobit, Garmin, TomTom and NNG, as well as other competitors such as Apple, Google,
Microsoft and TCS. In our advertising business, we compete against Google, Apple, Millennial Media, xAD, Verve Wireless, PlaceIQ and
NinthDecimal, among others. Some of our competitors
’ and our potential competitors’ advantages over us, either globally or in particular
geographic markets, include the following:
Our competitors’ and potential competitors’ advantages over us could make it more difficult for us to sell our navigation services, and
could result in increased pricing pressures, reduced profit margins, increased sales and marketing expenses and failure to increase, or the loss of,
market share or expected market share, any of which would likely cause harm to our business, operating results and financial condition.
If we are unable to integrate future acquisitions successfully, our operating results and prospects could be harmed.
In the future, we may make acquisitions to improve our navigation services offerings or expand into new markets. Our future acquisition
strategy will depend on our ability to identify, negotiate, complete and integrate acquisitions and, if necessary, to obtain satisfactory debt or
equity financing to fund those acquisitions. Mergers and acquisitions are inherently risky, and any
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the provision of their services at no or low cost to consumers;
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significantly greater revenue and financial resources;
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stronger brand and consumer recognition regionally or worldwide;
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the capacity to leverage their marketing expenditures across a broader portfolio of mobile and nonmobile products;
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access to core technology and intellectual property, including more extensive patent portfolios;
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access to custom or proprietary content;
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quicker pace of innovation;
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stronger wireless carrier, automotive, handset manufacturer and advertising agency relationships;
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stronger international presence may make our larger competitors more attractive partners to automotive manufacturers and OEMs;
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greater resources to make and integrate acquisitions;
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lower labor and development costs; and
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broader global distribution and presence.