As a Canadian, I have seen the rise and now fall, in fact plummet, of two great Canadian technology companies over the past couple of decades. The first great Canadian tech company to make its own demise was Nortel.
Nortel was, at one time, the world leader in technology switching networks, as well as other telecom products. After all, Nortel was short for Northern Telecom. Its demise was brought about by failing to recognize its competition soon enough, and failing to rise to the challenge of these competitors.
And now Blackberry is heading in the same direction, and at about the same speed – warp drive.
Blackberry was the leader in smart phones. It was the first phone that let you receive emails on your phone. That was way back in 1999; a mere 14 years ago. Its rise was supersonic. And many companies, especially governments, became reliant on it for communications.
In fact, by 2006, it was known as the “Crackberry” because of its addictive nature and constant use. In 2006, it even survived a major law suit by NTP which won a whopping $612.5 million from Blackberry, for a major patent infringement.
So why has Blackberry fallen off a cliff, as far as its name and its phones are concerned?
I believe there are two reasons, and both reasons date back to what Peter Drucker said about what companies need to survive and grow. Drucker stated that any business, in order to grow, must focus on two major factors – innovation and marketing.
Although Blackberry has now fallen down on both fronts, it was the marketing part that I believe will be its real demise factor.
Apple launched the iPhone in 2007, with perhaps one of the best marketers that ever lived; Steve Jobs, the major shareholder and founder of Apple leading the charge.
And because Apple became such a great marketer, it also became a great innovator. But the marketing is what set Apple apart from its competitors, especially Blackberry.
As history has shown us, all major markets eventually shrink, or disappear, because the best companies, in that market, either defeat or buy their weaker competitors. One reason Blackberry even survived this long is because it was first in the smart phone market, and it did have some great innovation when it started.
But a great marketing company can, and usually will win, and stamp out or vanquish its competition. I have just shown you how this defeat happened with two great Canadian tech companies.
But, there is a flip side to this. Where have impressive marketing companies beat out companies that had better technology? The greatest example is IBM.
I started working for IBM in 1974. And before I even set foot in a branch, or they let me loose to talk to customers, IBM put me, and thousands of others, through a nine month training program that included new skills in business, how computers work, but more importantly – how to market and sell.
Tom Watson, the founder of IBM, knew that marketing (including salesmanship) trumped all else in business. He knew you had to have adequate technology to keep up to the marketplace, but marketing was the one skill that kept IBM in the forefront for decades.
IBM was well ahead, and has lasted where most of its competitors are extremely weakened or simply disappeared. If you are over 45, you may remember Hewlett Packard (now simply HP), Prime, Osborne, Data General, and DEC (Digital Equipment Corporation), plus too many others to remember. All except HP are gone or absorbed by their competitors.
All of these companies had better technology than IBM. But where are they all now? Either acquired or dead.
But IBM is still alive because of its marketing, and its innovation. IBM reinvented (innovation) itself in the 1990’s under Lou Gerstner, and it still is one of the greatest technology companies, even today, although currently, much of its work is in services.
It has been said that Canadian tech companies have some of the best technology ever invented, but they may be the worst marketers in the world. Nortel has proved, and now Blackberry is proving that adage.
So, the real question is, Where is your company as far marketing is concerned?
Do you have a marketing department? Is your company still hiring sales people to do marketing – aka prospecting.
Does your company have a marketing strategy that includes your website, social media, content marketing, video, podcasts, client retention, etc., etc.?
If you don’t have excellent marketing, there is a good chance your company may also go the way of Nortel and Blackberry. But it will be much faster, unless of course you have the financial resources to keep it hanging on.
So, if your company wants to grow, start focusing on your marketing. Yes you need good technology that MEETS your market’s needs, but you do NOT need to have the best technology, because excellent marketing can and will help you succeed even better than the best technology.
Kind regards,
Ian Dainty
416.277.4537
ian@b2bbusinesscoach.com
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