TeleNav 2012 Annual Report Download - page 25

Table of Contents
mobile location services to their subscribers for free, they may elect to cease their relationships with us, 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 are adequate and may
not purchase our solutions with their new cars.
Our primary competitors include location service providers such as Apple, Google, Microsoft, Nokia, TeleCommunication Systems, or TCS,
Intel Corporation, or Intel, and TomTom; PND providers such as Garmin Ltd., or Garmin, and TomTom; providers of Internet and mobile based
maps and directions such as AOL Corporation, or AOL, Apple, Mapquest, Inc., or Mapquest, Google, Microsoft, Yahoo!, Inc., or Yahoo, Yelp Inc.,
or Yelp, Foursquare Labs, Inc., or Foursquare, and Fullpower Technologies, Inc. (MotionX), or 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 Robert Bosch GmbH, or Bosch, Garmin, TomTom and NNG LLC, or Nav N Go, as well as other
competitors such as Google, Microsoft and TCS. In our advertising business, we compete against mobile platform providers, including Google,
Apple, and Millennial Media, Inc., or Millennial Media, 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, such as our recent
acquisition of ThinkNear. 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 mergers
and acquisitions we complete may not be successful. Future mergers and acquisitions we may pursue would involve, numerous risks, including the
following:
20
•
the provision of their services at no or low cost to consumers;
•
significantly greater revenue and financial resources;
•
stronger brand and consumer recognition regionally or worldwide;
•
the capacity to leverage their marketing expenditures across a broader portfolio of mobile and nonmobile products;
•
access to core technology and intellectual property, including more extensive patent portfolios;
•
access to custom or proprietary content;
•
quicker pace of innovation;
•
stronger wireless carrier, automotive and handset manufacturer relationships;
•
stronger international presence may make our larger competitors more attractive partners to automotive manufacturers and OEMs;
•
greater resources to make and integrate acquisitions;
•
lower labor and development costs; and
•
broader global distribution and presence.
•
difficulties in integrating and managing the operations, technologies and products of the companies we acquire;
• diversion of our management’
s attention from normal daily operation of our business;
•
our inability to maintain the key business relationships and the reputations of the businesses we acquire;
•
our inability to retain key personnel of the acquired company;
• uncertainty of entry into markets in which we have limited or no prior experience and in which competitors have stronger market
positions;
•
our dependence on unfamiliar affiliates and customers of the companies we acquire;
•
insufficient revenue to offset our increased expenses associated with acquisitions;
•
our responsibility for the liabilities of the businesses we acquire, including those which we may not anticipate; and
•
our inability to maintain internal standards, controls, procedures and policies.