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Why Tobii's Business Model is so successful?

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Tobii’s Company Overview

Tobii is a world-leading group of companies renowned for pioneering eye-tracking technology advancements. Founded in 2001 and headquartered in Stockholm, Sweden, Tobii's mission is to enhance human interactions with technology naturally and intuitively. The company operates through three business units: Tobii Dynavox, Tobii Pro, and Tobii Tech. Tobii Dynavox focuses on assistive technology for communication, Tobii Pro provides eye-tracking solutions for understanding human behavior, and Tobii Tech explores integrating eye-tracking technology into various other products and fields. Their solutions are used in various industries, from research, gaming, and computing to health care and special education. Tobii's business model is centered around applying and integrating its proprietary eye-tracking technology. They sell hardware devices and software solutions that incorporate this technology and offer consulting services to businesses seeking to implement or understand eye-tracking data. In addition, they license their technology to other companies for integration into their own products. This multi-faceted approach allows them to tap into diverse markets and customer segments, ranging from individuals with communication disabilities to large corporations and research institutions. Tobii's revenue model combines product sales, services, and licensing fees. The company generates a significant portion of its income from selling eye-tracking hardware and software solutions. This includes standalone devices and software and integrated solutions for specific industries like healthcare, research, and gaming. Tobii also earns revenue from consulting services, which help businesses implement and interpret eye-tracking technology. Lastly, they earn licensing fees from companies that integrate Tobii's technology into their own products. This diversified revenue model allows Tobii to maintain stability and growth, even in fluctuating market conditions.

Tobii’s Customer Needs

Social impact:

Life changing: motivation, affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: integrates, connects, informs, quality, variety, sensory appeal

Tobii’s Related Competitors

Tobii’s Business Operations


A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Virtual reality:

AR/VR is the fourth significant platform change (after PC, web, and mobile). First, CEOs must choose how to play. Business models are determined by installed bases, use cases, and unit economics; there is no one-size-fits-all answer; each situation is unique, and developers must do market research and analysis before making a choice. Relying on advertising-income is a handy strategy for unknown businesses or newcomers to the market. It allows them to use their prior expertise with mobile and online ad campaigns.


A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Skunkworks project:

A skunkworks project is one that is created by a small, loosely organized group of individuals who study and develop a project with the primary goal of radical innovation. The terminology arose during World War II with Lockheed's Skunk Works project. However, since its inception with Skunk Works, the phrase has been used to refer to comparable high-priority research and development initiatives at other big companies that include a small team operating outside of their regular working environment and free of managerial restrictions. Typically, the phrase alludes to semi-secretive technological initiatives, such as Google X Lab.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Knowledge and time:

It performs qualitative and quantitative analysis to determine the effectiveness of management choices in the public and private sectors. Widely regarded as the world's most renowned management consulting firm. Descriptive knowledge, also called declarative knowledge or propositional knowledge, is a subset of information represented in declarative sentences or indicative propositions by definition. This differentiates specific knowledge from what is usually referred to as know-how or procedural knowledge, as well as knowledge of or acquaintance knowledge.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

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