Lack of innovation or innovating too slow can lead incumbent companies like the ones mentioned to go from market leaders to bankrupt.

1. Resting on Laurels
(lack of innovation)
Means Certain Death
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
June 5, 2012.
June 5, 2012 1

2. RIMM – Blackberry
RIMM rested on its
laurels in the corporate
market and failed to
innovate.
RIMM Share Price is
under $9.70 Jun 2012;
down from peak of $144
in Apr 2008.
Market cap was 16X
higher in 2008, just 5 yrs
ago.
June 5, 2012 2

3. Nokia – Feature Phones
Nokia missed the entire
transition from “feature
phone” to “smartphone”
allowing Apple and
Android to take over.
Nokia mobile phone
market share was 65% in
2005; but dropped off to
15% in 2011.
Nokia share price is $2.65
Jun 2012; down from
Nokia in blue peak of $40 in Oct 2008.
June 5, 2012 3
3

4. Kodak – Film
Kodak protected its film
market and missed the
entire transition to
“digital.”
Kodak market cap
dropped from $8 billion to
bankrupt in 2012.
June 5, 2012 4

5. Palm – PDA
Palm created the PDA
category and dominated
it. But it could not
parlay that lead into the
smartphone era.
By 2007, Palm’s
marketshare and interest
waned in light of the new
iPhone; and it never
recovered.
June 5, 2012 5

6. Sony – Walkman
Sony created the
personal music player
category; “Walkman”
was synonymous with
portable music.
But Sony could not
translate that dominance
into the digital PMP
(personal media player)
and let Apple eat its lunch.
June 5, 2012 6

7. Dr. Augustine Fou – Chief Digital Strategist
“I help clients leverage
insights from digital
channels to fuel innovation,
urgency, and speed.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
June 5, 2012 7
acfou@mktsci.com