This study is to analyze the “Envelope Effect” that comes from the Location-Based Services against the Portable Navigation industry, under such a wireless broadband era which boosts the development of the platforms used for Smart Phones. It involves analytical approaches based on the relevant research papers and managerial theories to conclude that there is not a case that Google and Nokia can successfully achieve “Winner-Take-All” through dominant strategy on the platforms for Smart Phones. Besides, following the research contribution with regard to “Platform Enveloping” from Eisemnann and Van Alstyne(2007), four possible competitive responses are also provided to the Portable Navigation companies, which include changing business models, matching the bundle, mergers and alliances, and antitrust litigation. At the end of the study, recommendations are also provided to the local Portable Navigation companies, mobile phone makers and telecom operators.