Strategic Management in Blackberry Company

This report discusses the strategic management of Blackberry company, including its strategic direction, external environment analysis, competitive advantage, strategic drift, mission and vision alignment, strategic capabilities, and the use of the Business Canvas Model.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Strategic direction that the company has followed in the past and the way in which strategic
thinking........................................................................................................................................3
TASK 2............................................................................................................................................4
Use an appropriate model of your choice to review the external environment of the company. 4
A critical discussion of the company's competitive advantage among its direct competitors.....5
The probable industry scenarios facing the company within its existing market domains.........6
TASK 3............................................................................................................................................6
The extent to which the company is facing strategic drift...........................................................6
Whether their mission and vision statement are aligned to the demand of the marketplace.......7
The company strategic capabilities..............................................................................................7
Use the Business Canvas Model..................................................................................................8
TASK 4..........................................................................................................................................10
Explore strategic choice model to sustain competitive position................................................10
TASK 5..........................................................................................................................................12
Resource implications of the selected strategy..........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management refers to the systematic management of the resources in order to
attain the overall goals and objective of an organisation. It is an essential branch of company that
is concerned to develop the objective or strategies on the basis of prime vision. This basically
assist the overall company to reach out the objective by taking corrective measures in order to
reduce the chances of deviation (Ertek and et. al, 2017). The aim of this tool is to outperform the
task and gain the dominance over the competitors and direct the overall manpower in right
direction. For the better understanding of topic Blackberry company has been selected which was
established in the year 1991 and became the well known brand in terms of the Indian formal
wear. The company mainly deals to design the outfit for men and has expanded its business by
opening approximately twenty one franchise store and vast present in the multi brand outlet.
This report cover topics like clear understanding of the strategic concept and competitive drivers
that can impact the competitive position. Along with that present the relevant use internal
analysis to prepare the desirable conclusion. Further, present the strategic choice model that can
help the company to sustain its competitive position and application of suitable strategic
implementation model are covered in this report.
TASK 1
Strategic direction that the company has followed in the past and the way in which strategic
thinking
Strategic direction encompasses the use of ideas and concept that help to develop the
consistent strategy over the certain period of time. This maintain the stability where business can
explicitly use the capacity to carry out the overall performance of firm and attain the
predetermined output. It comprises of the vision, mission, ideology as well as internal culture
that may differ from one firm to another but enhances the future of firm. In terms of the
Blackberry clothing which is considered as a premium brand of India that effectively cater the
formal requirement of the men. Usually the loyal customer base prefer the brand due to to its
supreme quality and the variants it offer in terms of colour and pattern to the client (Hong, Shin
and Lee, 2016). This is basically the result of strategic direction and strong vision that effectively
helped the firm to expand its operations in the diverse geographical areas of India.

Blackberry is owned by the Mohan clothing Co, that started its operation in 1991 and was
clear in terms of strategic direction. Like, in the past 5 year or from the beginning it has
successfully adopted the skimming pricing strategy under which it immensely pay attention in
the quality of set and set the high prices. Certainly it act as a major expansion drive that help
company to get the advantage of word of mouth publicity and till 2019 it has constantly opened
over hundred exclusive stores. In comparison to the past where company used to only focus on
men but now it has successfully expand its product portfolio. For instance, it adopted the
rebranding exercises under which company added the casual collection and multiple range of
outfit for women as well. So practices the modification and valuable changes by determining the
adequate strategic direction is the useful exercise for Blackberry brand in terms of catering the
demand of huge audience effectively. Thus, the strategic direction of the firm is to gain the
dominance within the geographical market due to which it has become one of the largest
manufacturer that has certainly enriched and fulfil the overall demand effectively (Johnsen,
2016).
TASK 2
Use an appropriate model of your choice to review the external environment of the company
External environment cover the macro analysis under which the company before
operating its operations or diversifying in any new market need to anticipate the dynamic
environment. It comprises of various external factors like economical change of technology
advantage that need to be potentially focuses in order to determine the favourable strategy before
expanding the operations (Kantur, 2016). Thus, explanation of the market with the help of PEST
analysis is explained below:
Political factor: It consist of the legal framework, trade regulation as well as political
condition of the environment which needs to be favourably analysed by the manager of
company. As these factors can not be controlled or changed by the Blackberry company but they
can bring the modification in the business process. As Blackberry which is the highly recognised
brand serve the Indian market which is the emerging market due to which its political conditions
are bit unstable. So before carrying out any major operations like diversification of plan it need
to analyse the market effectively to retain its goodwill.

Economic factor: This involve the macro environment factors like per capita income of
an economy, inflation rate, interest rate as well as infrastructure development are considered
because they together directly affect the functioning of whole enterprises. In terms of the
Blackberry clothing company that makes enormous effort to expand its functioning via retail
outlet as well as online media. So they need to change its strategy as per the different economic
condition like during the time of inflation the company can offer the discount or use sales
promotion technique. This helps the company to maintain balance between and remain consistent
to gain preferable profitability.
Social factor: This involve the changing attitude, preference as well as taste of people
that remain dynamic as per the evolving trend. In terms of fashion industry there is a huge
competition because it constantly changes that transmit the choices of the audience. So
Blackberry need to match with the current demand of the public with the objective to retain their
loyalty. Currently instead of just dealing in the formal wear and targeting Indian males, the
company has specially started the manufacturing of informal wear that comprises of jackets and
trousers (Kleibrink, Gianelle and Doussineau, 2016). Along with that it has offered large
collection for women to understand and function as per social factors.
Technology factor: Blackberry has effectively cemented its place as one of the
preferable brands that is based upon the execution of largest innovation and technology. Like, it
has the wide presence in digital platform via website that consist of online catalogue and present
all the offerings syntagmatically. Along with that in the physical outlet it has used the centralised
software to understand the consumer behaviour which is vital to build long term relationship.
A critical discussion of the company's competitive advantage among its direct competitors
The companies irrespective of their operations exist with the objective to gain the
competitive advantage and strength its capabilities to gain sustainable success. To gain the core
competitive the company can use porter's five factor model that help to maintain the
attractiveness and profitability. The explanation of the model in context to Blackberry company
is defined below:
Bargaining power of supplier: Within the geographical area Blackberry company holds
the tough position in terms of the market share as well as loyal customer base. So due to the high
recognition value and wide distribution network the bargaining power of supplier is low. Thus,

respected company needs to makes the significant advantage of this tool in terms of coordinate
with supplier and get the quality material in order to carry out its operations.
Bargaining power of customer: Generally the fashion industry experiences high demand
of the customer for apparel that leads to wide choices and high bargaining power of buyer. Due
to the availability of vast number of choices in the Indian market such as Raymond and high
switching cost the company the company need to adopt differentiation strategy in order to cover
whole market successfully.
Competitive rivalry: The existence of competitive rivalry or presence of intensive
competition is high which laid the firm to adopt the to analyse the competitors strategy and bring
the sustainable changes for the adequate functioning (Kunz, Siebert and Mütterlein, 2016).
Threat of new entrant: At present Burberry has maintained its reputation by
understanding the market dynamic and managing the operations wisely. This make the company
to experience to gain low threat of new entrant in the geographical market. It possibly helps in
the expand the capacities of firm effectively.
Threat of existing entrant: Although company has experienced wide network but still it
experiences high threat from the existing rivalry that can affect the profitability and position of
firm. The company carry out its operation and production activity in the emerging market like
India and Bangladesh due to which it gain preferable margin and need to focus to overpower the
competitive pressure.
The probable industry scenarios facing the company within its existing market domains
In India, Blackberry has become one of the fastest evolving company in terms of apparel
market. It immensely gain the success from the menswear collection within the apparel industry
of the domestic market. To portrait the unique image respected company used the differentiated
strategy under which it only constraint that how they can position the brand in the minds of
customer (Blackberrys on expansion mode, 2018). For this prestigious customer that fall under
the category of middle or high income group were considered. Although there are certain other
rivalries like Colorplus that a6ttimes gain more profitability due to its price. But it is vital for
company to constantly generate awareness amongst customer regarding its product and expand
the operation effectively.

TASK 3
The extent to which the company is facing strategic drift
Strategic drift: It refer to situation under which the company experiences steady fall or
deterioration in the business activities. The prime reason of these circumstances is to the
dynamic external environment that can affect the business process as well as systematic
functioning of firm. So it is necessary for the firm to understand the whole phenomena of the
external factor and bring the incremental changes that leads to transition and causes
transformational changes. In context to the Blackberry company suitably recognise the external
environment and uses the innovative criteria where the feedbacks and suggestion are taken from
the people based on which alterations are done. Along with that all the franchise store and the
spaces in the multi brand outlet are effectively used to display the merchandise and appeal the
interest of customer (Martinsons, Davison and Huang, 2017). Therefore, to maintain the
consistent perform the company has even launched the 360 degree campaign which is the
initiative to enhance the footfall of both summer as well as winder collection and leads to
sustainable growth.
Whether their mission and vision statement are aligned to the demand of the marketplace
Vision of Blackberry company is to progressively expand its brand and cater the need of
prestigious customer by retaining the interest of existing and attracting new client. This laid the
company to launch diverse variants in both official and casual wear by re-launch the existing
stores as well as opening new stores within the whole domestic market (Molter and et. al, 2016).
Along with that on the basis of vision the mission of company is to come up with various
variants and raise its reach by constantly incurring the modification in the product to build the
E-CRM. This refer to maintaining long term relationship with customer through electronic media
via email or text messages.
The company strategic capabilities
To build strategic capabilities as well as maintain the internal resources VRIO framework
is used by the company. This determine the significant elements that can help the company to
gain the advantage of long term sustainable development. Explanation of different criteria on the
basis of Blackberry company is determined below:
Resources Valuable Rareness Imitable Organisation Competitive

advantage
Brand value Yes Yes No Yes Sustainable
competitive
advantage
Quality Yes No No Yes Temporary
competitive
advantage
Supply chain Yes No No Yes Unused
competitive
advantage
Valuable: The brand image, quality as well as supply chain are the valuable resources of
Blackberry company that help the firm to gain competitive benefit. This promote the company in
terms of recognition which is the beneficial resource that help to gain success.
Rareness: In relation to the rare resources the high recognition value of the brand has
made it significant enough to wipe out the competitive pressure from the existing as well as new
rivalry (Steinbach and et. al, 2017). This assist Blackberry to gain the leverage of partial
competitive advantage to expand the processes of business effectively.
Imitable: There are certain resources that can be duplicated by the existing or new rivalry
which makes the brand irreplaceable. In context to Blackberry this includes the brand image
which company has create after the wide operations and by dealing with customer. Along with
that the quality as well as supply chain of one firm is tough to imitable leads to the direction of
temporary competitive advantage.
Organisation: This element assist firm to handle all the vital functioning and make the
brand productive enough to manage the suitable resources. Herein, Blackberry the potential
image of company helps to gain the long term sustainable advantage.
Use the Business Canvas Model
Business canvas model is basically a visual chart that determine different elements and
components of business such as its key partners, value proposition, channels to reach out
customers and so on. It is the strategic tool that help to develop the existing and new business

model required for smooth bushiness functioning. This is the efficient way to communicate the
desirables actions that can favourable function to gain growth and development (Sullivan,
Thomas and Rosano, 2018). Thus, all the essential component of the Blackberry company is
demonstrated with the help of canvas model that help in deep understanding, analysis and leads
to creativity.
Key partners
 Capital
 Raw
material
 Domestic
suppliers
 Strategic
partners
Key activities
 Engage
with
customer
to
understan
d their
perception
and
enhance
the
footfall of
company
 Collect
constructi
ve
feedback
 Potential
use of
warehouse
to store
raw
material
and
finished
items
Value
proposition
 Immense
variety of
official
and casual
outfit
 User
friendly
online
shopping
experience
 Online
merchandi
sing
canvas model
Customer
relationship
 Retain the
interest of
existing
customer
 Use online
medium to
attract the
potential
customers.
Customer
segment
 Middle
and high
income
group
people
 Professors
, business
men and
office
person

Key resources
 Digital
platform
 Favourabl
y designed
retail
outlet
 IT
infrastruct
ure
Channels
 Blackberr
y's
website
 Physical
store
 Presence
in E-
commerce
channel
Cost structure
 Adequate space for Warehouse
 Staff member
 IT infrastructure
Revenue streams
 Sale of apparel either through brick and
mortar outlet and online media
 Delivery at footstep of customer
TASK 4
Explore strategic choice model to sustain competitive position
The organisation irrespective of their sizes, scope and purpose exist in the dynamic
environment that constantly changes and affect the functioning of firm. So it is vital for each and
every firm to understand the environment in which they function so that they can adopted the
sound strategy and does not led the external circumstances to affect internal processes
(Szwejczewski, Sweeney and Cousens, 2016). This firmly gain the long term growth and
development by gangling the competitive edge over other. As Blackberry is the luxury clothing
brand that is specialised in making the outfit for both men and women but at the same time they
they need to maintain its goodwill. For this they adopt the strategy as per external situation and
uses advance technology to remain unbeatable in terms of existence of intensive rivalry.
Ansoff matrix is the effective tool that help the successful organisation to maintain its
sustainable position and expand the long term operations of firm. This tool display the wider
options for the firm by which it helps to articulate the different options based on which an
organisation adopt the suitable strategy and help to cope up with the problem effectively. It

determine the potential way by which the firm can increase the profit and get the favourable way
to reach out the customer effectively. This matrix consist of the four strategies that are adopted
by firm on the basis of their potential And risk taking ability. Thus, the explanation of strategy in
context to the Blackberry company are defined below:
Market Penetration: Within market penetration the company remain keen to sell its
existing offering within the confined zone or market (Vitolla, Rubino and Garzoni, 2017). The
firm uses this strategy with the motive to enhance the existing market share of company by
setting the reasonable prices of the commodity with the objective to penetrate in the large market
effectively. Blackberry can use this strategy to expand the overall operation of firm for which
adequate promotion as well as distribution channel are used to penetrate in large market
effectively.
Product development: Within this strategy the company takes the initiative to develop
the innovative product with the objective to cater the existing market of firm. On the basis of
market research the company identify the potential requirement of customer of the basis of
changing trend and bring the suitable changes in the existing performance of firm. Herein,
Blackberry company can use this strategy to provide the innovative solution that successfully
meet the requirement of customer.
Market development: As per this strategy the firm makes effort to enter into the new
geographical area or market with the existing product. The manager of company usually choose
that market which is identical to the existing market because there care taste and preferences of
customer are bit similar. By using this strategy Blackberry company can leverage the advantage
of extended market and technology by expanding its operations in the other Asian market like
India. This is the favourable way to gain additional profit and expand the resources effectively.
Diversification: This strategy is the most riskiest one as to gain the advantage of portfolio
investment the company takes the decision to launch new product in the completely new market.
Although the department of an organisation carry out whole market research and understand the
customer behaviour but still the company has no past experience of working in new surrounding
(White and et.al, 2016). So Blackberry company can use this strategy to expand its operations
and gain the global dominance where it gets the opportunity to cover the new customer and take
actions to develop wide customer base.

Thus, amongst different strategy Blackberry company has successfully adopted the
Product Development strategy where it keep on launching the new collection that suitably fit the
changing trend of customer. It include both formal as well as casual outfit for both men and
women and effectively cater their requirement. There are different levels of an organisation such
as functional, business, corporate as well as global level which together function and leads to
create the value for substantial functioning. The explanation of different levels in context to
company are defined below:
Functional level strategy is used by the organisation to strengthen its existing functions
as well as resources in order to match with the capabilities as well as functioning of the firm
(Williams, Chen and Agarwal, 2017). Blackberry company train their staff and make them
capable enough so that they can effectively deal with the customer without any hesitation. This
helps to effectively manage the internal performance of firm.
Business level strategy is planned by the Blackberry company to maintain its position
and gain the core competencies over others to gain dominant position. So it is the responsibility
of manager to make all the potential strategy for desirable functioning of firm.
Corporate level strategy is useful way to strengthen its capabilities and build the core
competencies by expanding the operations in the new market or domain. Blackberry company
enhances its skill and use research and development technique so that it can establish its existing
market and expand in the new region suitably.
Business expansion strategy depict the significance of firm to expand its operation in
the completely new market. So all the external factors are evaluated by firm with the perspective
to take the action suitably. Hence, Blackberry can use this procedure by taking the leverage of
partnership and collaborate in order to diversity its operation in international market effectively.
TASK 5
Resource implications of the selected strategy
A business strategy are the set of actions that help it in attracting customers, improving its
performance and achieving its goals and objectives. Strategy also helps the company in gaining a
competitive advantage in the market which can help it to sustainably survive in the competitive
market. Blackberry uses product development strategy so that it can introduce variety of
fashionable clothing wear for its customers which help the company in achieving its goals and

objectives. The resources it need to implicate in order to successfully apply the product
development strategy are sound operations so that the company can operate its functions
efficiently. Blackberry also needs to have a strong financial plan so that it can allocate
appropriate budget which can be used in R&D in order to develop variety of clothing in
accordance with the trending fashion so that the company sales can increase (Wudhikarn, 2016).
Also the company needs to develop its technology so that customer satisfaction can be increased
by providing them with comfortable and fashionable clothing wear which helps in enhancing
their status in the society. Blackberry can also build a strong brand image as it can provide
variety of clothing wear which are highly in demand in the market.
For efficiently achieving the company objectives it is important to integrate and
interrelate the functions of all the departments such as finance, HR, marketing, operations etc. so
that the strategy chosen by the company can be effectively implemented. Finance department of
Blackberry helps in allocating appropriate budgets to all the other departments so that their
functions can be done efficiently. Marketing department helps in building strong customer
relations, production department is related to the R&D department which helps it in knowing the
demand of customers in the market so that the products can be developed according to customer
specification etc. In this way it is important that all the departments are integrated and
interrelated so that the objectives of Blackberry are efficiently met.
The product development strategy can help Blackberry in providing its customers with
variety of products so that their experience can be enhanced and they can be provided with a
range of options in fashionable clothing which helps in increasing the company sales and profits.
However, as the taste and preference of customers keep on changing the R&D cost of the
company increase constantly which can make it products expensive and thus affect its profits.
CONCLUSION
From the above report it can be concluded that strategic management is important for a company
to achieve competitive advantage in the market as it helps in developing such strategies which
can deal with the negative impacts of the changing environment. Strategies chosen by the
company determines its growth and development in the competitive marketplace. Various
models and concepts can be chosen by the company so that the company goals can be reached
and sales of the company can be increased. The internal and external analysis of the company

helps in determining the factors that affect the business so that competitive and market efficient
strategies can be adopted by the company so that it can survive sustainably in the market.

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Online
Blackberrys on expansion mode. 2018. [Online]. Available
through:<https://www.thehindubusinessline.com/companies/blackberrys-on-expansion-
mode-may-add-womenswear-to-portfolio/article25579740.ece>