The secret of the global success of Nokia Mobile Phones and Ericsson Mobile Communications

This paper explores why two companies-Nokia Mobile Phones and Ericsson Mobile Communications- originating from very similar yet relatively small countries in global terms, have managed to grow into world leading telecommunications companies. It is argued that the macro level legal environment as well as the microeconomic business environment of the home markets plays an important role in the international prosperity of these companies. Secondly the quality of the microeconomic foundations of Finland, Sweden and the EU appears to provide the basis to increase competitiveness of incumbents established in the telecommunications industry in these markets. The role of the Finnish and Swedish governments has been significant in helping create the competitive advantage in the home markets, which these telecommunications giants have translated into global market success.