Saturated smartphone markets in developed countries Increased competition for government contracts Strengths Highly secure phones.
Importantly, in earlywhen Apple introduced the world to the iPhone, Blackberry maintained and pursued strategies that did not account for the true disruptive nature of the smartphone. Consistent growth in revenue confirmed the fact that Blackberry had popular product offerings that not only commanded high price points but also immense customer loyalty.
Having a proven recipe for success thus far, Blackberry substantially underrated and certainly did not anticipate the competitive threat posed by smartphone technology. Indeed, for the senior executives at Blackberry, there was widespread conclusion and agreement at the strategic level that the company would allow Apple to focus on the smartphone market which was largely perceived as an unproven market at that point, whilst Blackberry would continue its focus on the existing business model and selling its proven products.
For Blackberry, its own phones stood as highly differentiated with a very specific but large and successful market. In response to this, in the past few years, Blackberry attempted to gain a competitive advantage via a number of strategies.
In lateBlackberry began to produce its own smartphones, the Storm, in an attempt to ride on the growth of the smartphone market.
Unfortunately, the company did not secure a strong position within the market, as the Storm met mediocre consumer reviews in both its unimpressive technical features and software experience.
The company also could not outsource and rely on the competencies of other experienced developers, such as Google Android, that has yet to enter the marketplace at that point.
Blackberry then made the strategic decision to enter emerging markets, particularly, Latin America and Asia, with a price-centric approach. This strategy enabled the company to gain a short-lived competitive advantage especially when consumers in many of these markets are extremely price conscious due to comparatively lower disposable income levelsas Blackberry saw a steady growth in market share in these regions.
Blackberry attempted diversification, via the purchase of QNX Software Systems, an operating systems developer, in The Playbook again met negative reception and represented a commercial flop for the company, as it was over-priced, relative to its performance and technical capabilities. Blackberry is currently focused on a complete strategic overhaul.
Firstly, the company is looking to lessen its strategic focus on the mass consumer market with smartphones but instead focus on niche markets with its product offerings.
Particularly, the company has long had a track record for its security systems and capabilities which represents a strong competency for the company. Instead of competing on securing its own position within the general consumers market which is now heavily competitive and saturated by a plethora of smartphone companies, the company is currently looking to target enterprises and focus on enterprise services.
This strategic shift holds promise for various reasons. Firstly, the initial success of Blackberry at its inception, was on built on its security and relevance within an enterprise context. Blackberry has an established reputation on these grounds. Compared to this understanding, Blackberry has spent too much time and resources developing new competencies to compete in the mass markets which has been largely unsuccessful.
Secondly, security is becoming much more of a pressing issue in recent times, with the latest headlines revolving around cyber-attacks of various degrees. As the data and connectivity grow to define the future, security becomes an important service that is harder and harder to ignore.
Thirdly, Blackberry is also looking to diversify, primarily via a focus of developing and expanding many of its popular services, many of which were previously available exclusively to its products, and offering them to consumers on a service level. There has been great reception here as more than 40 million users have signed on to use BBM.
In the media, Blackberry has made clear that they intend to develop and grow the base of Blackberry service users with services being a large potential stream for future revenue. The move is relevant, as the immense growth of smart device users in the recent years present a lot of growth opportunities to service providers and software developers.
However with this being said, this industry is also largely competitive and Blackberry would need to be able to swiftly identify trends, adapt quickly and innovate in meeting consumer demands to be able to truly capture and sustain a competitive advantage here.
Although business level strategies such as cost-leadership have been attempted to a degree of success by the company in recent times, such a strategy does not guarantee a long term competitive position. This is because no matter how cheap BlackBerry makes its products, there will always be a room for vendors, especially from emerging markets, to go cheaper.
The recent introduction of Hongmi, a Chinese smartphone which features a quad-core 1. You might also like.Blackberry owned 3 temporary competitive advantages likes ﬁnancial savvy, R&D capability and new management team, since the change of management took place in July , development of BB10 OS and BB10 Enterprise solution already in place with good market response Strategic Management Essays, Term Papers & Presentations.
Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry.
BlackBerry Limited managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing BlackBerry Limited.
Blackberry’s business-level strategies can be best understood and appreciated with a careful analysis of its strategic development to date. Competitive Analysis: Globally, RIM holds 20% of the smartphone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smartphone competitors and is constantly rivaling to stay on top.
Business competition can be found in every industry, every product category or every geographic market in the world. It benefits the consumers and is the main reason innovation happens. Marconi Group has a vision for transforming the fundamentals of patent licensing.
It should be collaborative: serving the needs of companies both when they are innovating new technology and when they are incorporating technology into new products.