Technological development – smartphones – economic results

Smartphone industry In the corporate world, it is inevitable that some companies will survive and some will disappear. When it comes to smartphones, it’s no secret that Apple dominates the industry. As such, Apple’s success led to the failure of others, including Nokia. As the tech industry is one of Finland’s two largest industries, Apple’s success has had more serious consequences than a company’s failure. According to former Finnish prime minister Alexander Stubb, the disappearance of Nokia and the country’s other largest industry, the paper industry, led to a downturn in the Scandinavian economy. As such, Stubb blames Apple for the Scandinavian economy’s decline and the downgrade from AA+ to AAA.

From micro to macro According to Stubb, the success of the Iphone led to the destruction of Nokia and the success of the Ipad to the detriment of the Finnish paper industry. As such, Apple’s actions are said to have been very effective for the country’s economy in general, proving how important a single company’s success can be. Moreover, according to Stubb, in order to survive, Finland needs emerging companies that dominate the country’s economy. Since this example is a proof of the importance of a strong company for the country’s economy, it can easily be said that the emergence of a new “Nokia”, if strong enough, can save the Scandinavian economy.

Nokia’s Market Share (% of Units Sold)

Conclusion? Nokia’s failure cannot be explained by a single decision or an operational error. It can be safely said that it is the result of a combination of several factors. According to a case study published on Startup Talky, there are six reasons for this. These can be summed up by Nokia’s inability to adapt to the emerging industry leading to product improvement and thus less emphasis on innovative products. So the combination of Nokia’s point of view and Apple’s innovative point of view caused consumers to shift rapidly from Nokia to Apple. In summary, maladaptive behavior has led to lower innovation and unresponsive actions to changes in consumer preferences in the industry. Additionally, bad marketing strategies, such as the inability to work with a successful umbrella brand, and wrong managerial choices, such as the deal with Microsoft, made things worse. As a result, Nokia failed due to a combination of certain factors and became an important stakeholder in the decline of the Scandinavian economy.

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