Blackberry-Out of Juice!

 

Blackberry-Out of Juice!

Introduction:

Blackberry was founded in 1984 as a manufacturer of modems and pagers only. However, in 2000, BlackBerry launched its first smartphone model called BlackBerry 957. It is the first smartphone model with Internet surfing and dynamic email sending functions.

In the 2000s, BlackBerry was known as a standard and premium brand not only for smart business people, but also for those who value privacy and security. But in 2007, when tech giant Apple launched its first smartphone. BlackBerry has experienced good competition in the market. Then, as technology evolved and companies like Google launched mobile phones, a great deal of competition began.

Given BlackBerry's exponential growth chart, no one should have been surprised that the company would go bankrupt! And here begins the end of the BlackBerry era.

Data set and Analysis:

Given below is the graphical representation of worldwide market share of Blackberry smartphones from
2009 to 2016.

As shown in the graph, until 2011, the company was booming, but suddenly it came to an end. When BlackBerry reached its peak, some nonstrategic and irrational moves resulted in some big losses. Similarly, it boosted its top-performing $230 stock price and is now worth $4. A company with enormous goals and plans, BlackBerry was quickly overwhelmed with rage.

Reason of Downfall and possible solutions / recommendations:

Hardware Innovation:

With the evolving technology, BlackBerry was considered to be overpricing on its average hardware system. Soon as Apple and Samsung launched their smartphones with a complete touch screen body. Also, the keyword disappears when you're done typing, leaving plenty of room for other uses. However, BlackBerry with QWERTY keyboard lacked such a feature, which was a major cause of BlackBerry's failure. Despite this, Blackberry has not invested in making full touchscreen cases, but continues to make phones with external keyboards like the Blackberry Key 2. Sales have dropped significantly because of this. So, they should have worked more on their hardware.

Targeting Audience:

BlackBerry primarily focused on wealthy sectors such as celebrities, businessmen and other wealthy managers. They tend to wear BlackBerrys to show their dominance. The reasons for using Blackberry are:

  • Strong End-to-End Encryption Security
  • Sophisticated PDA Supports Business Greatly
  • Email Service

But as soon as iPhone sales increased, Blackberry quickly lost its massive user base and importance. In addition, BlackBerry focused only on enterprise-level marketing and ignored the consumer part. This also played a big role in it's failure. Company should have focused a bit on other economic class too.

Research and Development:

BlackBerry did not fail. Innovation and advanced features were lacking as technology and monitoring were always up to date. But the reason BlackBerry failed is money. BlackBerry innovations and features are the result of research and development (R&D). However, this required funding, and failures such as declining sales prevented the company from investing in research and development. This prevented BlackBerry from realizing its fundamental potential. RIM then sold BlackBerry brand to TCD (a Chinese company). Company should have invested more in R&D sector.

Operating System:

BlackBerry's operating system lacked some key features and technologies. Developers cannot build apps at scale. Other operating systems offer free directories for developers to create corresponding apps. However, Android and iOS allowed customization of the application, as users could remove and add them at will. Therefore, the developer was completely satisfied with Android and iOS. Nevertheless, BlackBerry continued to develop its own operating system, which was a disaster. They should have focused on their operating system.

Accepting the change late:

BlackBerry finally unveiled a new smartphone with sophisticated features to regain its lost presence and customers. Launched Priv with features like a dual-curved UHD display, pop-up widgets, 3GB of RAM and a Snapdragon 808 CPU. But it was too late. The phone was an absolute disappointment. The quality and functionality of the product lacked some key technologies. BlackBerry was not meant to add new features or advanced operating systems. For this reason, a potential BlackBerry consumer switched to Android and iOS.

 

Lesson Learned:

Today, production of BlackBerry smartphones has completely ended. So, they urned back to software and mobile security solutions. BlackBerry's technological sophistication has given it a market dominance, leaving behind the untapped. However, when it came to advancing BlackBerry's technology, the company failed due to its inability to assess and compete with the level of competition in the market.

BlackBerry has left some key takeaways and examples for other tech companies that need to evolve their capabilities and technology to survive in the tech world.

 

Source and References:

  • Book- "Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry"
  • https://startuptalky.com/blackberry-case-study/
  • Book- "Victim of Success: The Rise and Fall of BlackBerry"

- Aditya Pachore
  President.

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