Navigate New Industries: Korea's Navigation Pioneer, Thinkware

Abstract

The navigation system, a traffic information system which informs the user of the optimal route to the destination, is composed of a receiver (GPS), electronic map, software, information terminal, and storage device. Among them, the built-in navigation refers to the navigation system installed in the center fascia of a car. Thinkware (CEO Kim Jin-Beom), with its iNavi brand, is Korea’s major navigation company leading the domestic market. Its product was first launched when the market was being established, and it strengthened its position as a market leader with a widely recognized quality digital map and hardware. Founded in 1997, Thinkware was listed on the Kosdaq in 2006. Based on Thinkware’s brand recognition and technological prowess, it recorded rapid growth in revenues also. Recently, Thinkware is successfully merged by Ubivelox, which is a leading Korean communication device company, and keeps its grwoing. However, things were not always smooth for Thinkware. It overcame two major crises, once during the inception stage of the company and another during its growth period, to win the title of No. 1 market share of the Korean navigation industry. This case tried to explore the success factors of Thinkware. Particular attention was paid to the early days, before M&A, in order to explain its efforts of overcoming challenges of introducing a new innovative product and to show the importance of HW&SW bundling and strategic entrepreneurship.