There is no
denying the growing impact of technology in the business world. Every business
needs to stay on top of the latest technological developments and digital
marketing trends. The consequences of not doing the same can be catastrophic
for businesses. The impact of a much stronger competitor with a solid technical
wipe out their business. This is as relevant for small businesses as it is for
the example of iPhone’s impact on Nokia and Blackberry. When the iPhone was
launched, Nokia’s market capitalization was $114.5 billion and Blackberry was
valued at $40.09 billion, in 2007.
In a short
span of 6 years in 2013, Nokia was sold to Microsoft for $7.2 billion, valued
more for its patents and cash rather than the Nokia brand and its balance
sheet at the time of takeover. Blackberry was taken private at $4.7 billion.
That’s a market capitalization loss of about $134 billion in 6 years! Also
notice the regular release of new products from Apple starting from 2007. Every
year there has been a release of an upgraded Apple iPhone!
The reason for
the calamitous fall in market capitalisation and the eventual demise of Nokia
as a company was that the respective company boards were slow to change and
Apple was simply too strong with its technology offering (iPhone) and the relentless release
of new versions of the product catering to the different tastes of the market
as well as to take on competition (read Samsung).
Is it a
coincidence that Richard Branson sold his chain of stores (Virgin Megastore) in
2007? The iPod had already eaten into the share of companies like Virgin
Megastore, HMV etc., and iPhone was just launched. Branson sold the company at
the right time and in the process limited further damage to his wealth!
current technology age, it would be prudent for companies to invest in
technology, automate their processes and use digital marketing and SEO to promote their
products and get ahead of competition.
If you would like a no obligation consultation on how software and technology can help your
company and how to showcase your products and services on an online platform,
please contact us now.