Blackberry's Fall from Grace: A Case Study

This assignment delves into the factors contributing to BlackBerry's decline from a dominant force in the smartphone market. It analyzes how shifting consumer needs, the company's reluctance to innovate, flawed marketing strategies, and overconfidence led to its downfall. The analysis examines the lessons learned from BlackBerry's experience and highlights the importance of adaptability and continuous innovation in the technology industry.

Running Head: BLACKBERRY COMPANY REPORT 1
BLACKBERRY COMPANY REPORT
AUTHORS NAME
UNIVERSITY OF AFFILITION

BLACKBERRY COMPANY REPORT 2
INTRODUCTION
Blackberry is a multinational company based in Canada that specializes in the internet of things
and enterprise software. Formerly the group was identified as Research in Motion (RIM). The
Company was well known to the public for smartphone and tablets development branded as
Blackberry. Under the management of chief executive officer John S Chen, the company
transitioned to production of enterprise software and services (En.wikipedia.org, 2017). The
product under enterprise software is used by business owners globally. Some of its software’s
include, blackberry UEM, QNX real-time operating systems and AtHoc crisis communication
platform. When John S Chen took over the company, he had a different strategy for the company
which included concentrating on software technology and contract out manufacturing to
Foxconn. Currently, the business model strategy involves coming up with authorizing
partnership with device producer such a TCL Communication and amalgamating Blackberry
software collection. Over the years the company had a different achievement that comprises of:
It was the first developer to come up with wireless technology.it was the first company outside
Scandinavia to develop Mobitex wireless products connectivity. The company introduced its first
Mobitex protocol converter.
COMPANY ANALYSIS
In September 2011, the company suffered a massive outage, affecting many of its consumers.
The sluggish growth pressed the company to adopt a strategy that laid off 2000 of its employees
in 2011.The outage happened during that time that Apple was preparing to for its iPhone 4S
launch, this triggered qualms of mass defection from the policy. By October 2011, the RIM
uncovered, prospect blackberry smartphone new platform that would be based on similar QNX
as a play book (Editorial, 2017). The platform was renamed blackberry after the RIM had been
accused of brand breach regarding name BBX. Blackberry has placed more emphasis on its
complete strategic refurbishment. First, the company is targeting the niche market as opposed to
its previous focus on mass customer market. The company has presented long track record in the
high competency of its security systems and skills. The company is shifting its focus to targeting
enterprise and enterprise facility as opposed to safeguarding its spot in a competitive and
saturated smartphone market. With regards to this market perspective, Blackberry services and
products are valued and well differentiated from competitor’s brands.

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When blackberry released blackberry enterprise service 12, it was enough evidence of the
strategic shift taken by the company (Guides.library.ubc.ca, 2017). The product is software that
allows mobility management to manage the mobile devices securely. Strategic direction
promises the company good return for the various reasons. First, the original success of
blackberry was built on its relevance and security within a business context. Secondly, with
security becoming a major issue of concern recently, with the growth of data connectivity, it
becomes harder to ignore security measure to curb cyber-attacks. However, the market being
very competitive, blackberry requires to identify trends, adapt quickly and innovate ways it can
meet the consumer demand, for it to maintain a competitive advantage,
INDUSTRY ANALYSIS
Blackberry operates in an industry that covers a broader number of sectors that is technology
industry. Technology industry relates to the company that provides communication services to
the consumers. Computer service and enterprise resource planning, computer hardware and
software, internet and telecommunication have impacted ion people lives either on the positive or
the negative (Anon, 2017).These industries are the backbone of the technology industry.
Blackberry operates in communication tools industry. The industry caters to consumers demand
in services and electronic apparatuses to enhance communication. The products range from the
mobile handset to telephone network infrastructure .these products may operate through wired
connections or in wireless connection to the public communication network. Blackberry holds a
market share of 5% (Moorman).
SWOT ANALYSIS AND COST BENEFIT
Strength
The company has highly secure phone that is its main strength. This has enabled the company to
be on the competitive edge. The company has a mobile phone that offers highly encrypted
secured network that has provided a secure plat for communication without fear of cyber-attacks.
Secondly, the company strength has been its focus on the small consumer segment (Jurevicius,

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2017). Contrasting its competitors the company has placed its emphasis on the narrow consumer
segment. This approach is to ensure that the demands of the customer are met.
Weakness
The company has reduced marketing strategies of its products. Before the lunch of Apple
product iPhone 4S, Blackberry had its brand in the market performing well with a more
significant market share. However, the company was overtaken by its competitors due to its
reluctance in the marketing of its name. Secondly, playbook tablet launch was not well received
in the market, and it only had a smaller market share which made the company go through loss.
This decreased blackberry chances to compete with its competitors Apple or Samsung who
received the more significant income and profit growth due to tablet increase sales and demand
(Jurevicius, 2017).
Opportunities
The blackberry can seize the opportunity for growth in mobile advertising. With the increase in
cloud-based service demand; The Company can benefit from the growing demand for expansion
of its services that are cloud-based.
Threats
The company has a lot of risks to keep a close watch. First, the rapid change in technology is
posing a significant threat to the technology world. The company is inconsistent production of
the new product that will keep up with the competition. This becomes a significant challenge
when the company wants to introduce a new product that is innovative and successful. Second
threat is the saturation of the smartphone market in the developed countries. This has led to slow
growth. Due to this factor, the blackberry has not been able to expand its market share in Canada
and USA.Lastly.is the increased competition on contracts offered by the government.
Government goes through a process of contract renewal after few years; Blackberry has to
compete with its competitors Samsung and Apple for government contract renewal (Jurevicius,
2017).

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COST BENEFIT ANALYSIS
A detailed description of cost and benefit of blackberry device is discussed as follow. To begin
with a price: The cost of deploying a blackberry enterprise server is costly. Ranging from 75% to
59% of value is because of the data expense and voice expenses. Corporate liability policies
drive this cost for smartphones. While some organization allows their staff to ask for a refund
from the organization if they incur these charges, others only pay a certain percentage. An
organization enjoys a lot of benefits on blackberry deployment in the organization. These
benefits have been classified into: blackberry devices, allows employees to be more efficient and
effective in their work production.as an organization evolve through the deployment of
blackberry initiative across a range of employees, and chose an implementation that is more
integrative, additional efficiency is obtained in some processes of the workflow.

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Costs: Benefits:
New computer
equipment:
Cost
each:
Totals: Per
year
Totals:
10 network-ready
PCs with
supporting
software
$2,450 24500 Tripling of mail shot
capacity - estimate:
$40,000 40000
1 server $3,500 3500 Ability to sustain
telesales campaigns:
estimate
$20,000 20000
3 printers $1,200 3600 Improved efficiency
and reliability of
follow-up: estimate
$50,000 50000
Cabling &
Installation
$4,600 4600 Improved customer
service and retention:
estimate
$30,000 30000
Sales Support
Software
$15,000 15000 Improved accuracy of
customer information:
estimate
$10,000 10000
More ability to manage
sales effort
$30,000 30000
Training costs: Each: Totals:
Computer
introduction – 8
people
$400 3200
Keyboard skills –
8 people
$400 3200
Sales Support
System – 12
$700 8400

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people
Other costs:
Lost time: 40 man
days
$200 /
day
Lost sales through
disruption -
estimate:
$20,000
Lost sales through
inefficiency during
first months –
estimate
$20,000 Total
Benefit
per
year
280000
Total
Costs:
$106000 Calculate the payback
time:
280000/106000
=2.6 YRS
INDUSTRY FEEDBACK
Based on an article in the linked professional network blackberry failure can be traced to its
adoption of the wrong business model to be measured. The company core business was not what
the market share assumed. Blackberry has lost its market share to its competitors due to some
reasons. First, the company management had a lot of ignorance and pride. Pride is a hindrance to
the growth of any business. Ignorance of consumers changing needs and complains will quickly
shift their attention to competitors. Secondly, blackberry was reluctant on innovation. In the
technology industry, innovation should not stop. These provide a loophole that was filled by its
competitors Apple and Samsung through continuous innovation. Thirdly the company lacked
proper marketing strategy for its products. It is an advertisement that consumers are made aware
of the company products. Lastly, the company was overconfident about its outcome.
Overconfidence is a threat to any business since it can bring defeat from its competitor who is
continually working their win.

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Moorman, James. "BlackBerry: Current Environment." Standards & Poors. N.p., 18 Oct 2012.
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