buying time

Brand = protection

Nokia went from being dominant to almost non-existent when the market for mobile phones dramatically shifted with the advent of the iPhone. What’s interesting though is this example shows that even though Nokia’s product was so inferior to the iPhone, the brand reputation and protection insulated Nokia for a number of years.

Even 3 years after the introduction of the iPhone, Nokia still held almost 40% of the market. Having a strong brand gives you time and protection from a competitor. However, Nokia could not hold on just with brand power, they needed to innovate, as Apple’s offering was a rare market-changing one, but they never really did and thus 6 years after the introduction of iPhone they had less than 5% of market share.

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