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 offering can wipe out their business. This is as relevant for small businesses as it is for bigger ones.

Let’s take 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!

In the 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.