Blackberry Company’s Challenges and Strategies in the Smartphone Market

Introduction

Blackberry, an industry leader due to the popularity of its first generation of Smartphones, has recently been in the headlines for all the wrong reasons. First, despite being an early leader in smartphone technology, Research in Motion (RIM), the firm responsible for developing and marketing Blackberries, failed to see the market opportunity presented by the rise of the Smartphone. Furthermore, the firm misunderstood consumer preferences, allowing Apple and Samsung to steal market share (Hempel, 2010). Because of this, the firm came dangerously close to failing and, despite many shifts in leadership, was never able to recover. The firm has been in the spotlight again in the last month due to its decision to recruit a new CEO and accept a fresh injection of money after rejecting a buyout offer and rescinding a selling option. Research in Motion, the company that developed and distributed the Blackberry, missed the growing Smartphone revolution, which has led to the company being in the news for all the wrong reasons regardless of being a leader in mobile-based electronic devices with its best-selling initial cellphones (Firtman, 2013). After that, the company stopped being able to predict consumer behavior, and it lost ground to competitors like Apple and Samsung. After deciding to hire a new CEO and accept a fresh influx of money rather than accept a buyout offer and cancel the selling alternative, the blackberry case study research claims the company is back in the news.

SWOT analysis of Blackberry company

Strengths

Blackberry’s exclusive technology gives them a leg up on the competition, particularly among business customers, and has helped the company gain widespread recognition and a positive image (Helms & Nixon, 2010, p. 215).

Blackberry’s global compatibility with all major mobile networks is a major asset that helps the corporation stay mobile and adaptable as it expands its operations.

Blackberry’s cybersecurity protections, both built into the hardware and the operating system, are superior than those of any other mobile manufacturer, including Samsung and Apple. This is why Blackberries are so common among business professionals; they are easy to connect to and integrate with virtual private network. Because of these advantages, Blackberry has become the preferred Smartphone of several agencies of the United States (Syer, Adams, Zou & Hassan, 2011). These include the FBI, the Central Intelligence Agency (CIA), the White House, and the US Department of State. Blackberries are the best option for organizations that deal with private data because to its encrypted military-grade safety framework.

Weaknesses

Blackberry’s biggest flaw is that the company has only focused on catering to business customers by emphasizing the security of its devices. While this served it well among businesses, Blackberry’s days were numbered when rivals such as Samsung and Apple introduced their own Smartphones for regular people (Sarsby, 2016). When it comes to Smartphones, security is a major selling point, and both Samsung and Apple have dominated the marketplace as a result.

Blackberry lost popularity among rivals when it required costly corporate software upgrades, prompting many to move to other brands. The firm also declined because its rivals, Samsung and Apple, both employed proprietary operating systems that were more advantageous to Blackberry’s target audience (Gurl, 2017).

Blackberry, as was noted before, was a one-trick pony because of its exclusive concentration on the business market. Samsung and Apple swiftly captured the untapped consumer market, while the latter’s superior user experience and Apple’s simpler, more powerful applications eventually drove away Blackberry’s business clientele (Sarsby, 2016).

Opportunities

The firm has taken some bold steps recently, including turning down a sale and purchase offer and accepting new funding from a group of angel investors. Blackberry has shown its dedication to its reinvention by replacing its CEO and reorganizing its management team and infrastructure (Teoli, Sanvictores & An, 2019).

The corporation may profit greatly by capitalizing on its current user base of more than 100 million individuals. The corporation has a huge window of potential to capitalize on by targeting this market with its future offerings (Benzaghta, Elwalda, Mousa, Erkan & Rahman, 2021, p. 61).

The firm can emulate Apple and Samsung’s strategy by incorporating third-party applications and services into its phones, and expanding its commercial relationships with third-party suppliers might prove to be a significant potential as it gears up to compete with Samsung and Apple (Berry, 2018).

Threats

Although Blackberries were the first Mobile phones, both Apple and Samsung surpassed them to the future Smartphones by providing the adaptability and user-friendliness that Blackberries lacked and therefore allowing them to gain a dominant market position (Phadermrod, Crowder & Wills, 2019).

Blackberry faces challenges not just from its rivals, but also from within, where poor morale and an overall lack of direction have arisen as a direct consequence of the firm’s recent difficulties. Blackberry has to rescue itself from the fading momentum and enthusiasm of its workers, and it also needs to renew and reinvent itself since creativity is essential in the Smartphone business (Phadermrod, Crowder & Wills, 2019).

Areas where the company has earned excellence in terms of performance

Operation Guidelines

BlackBerry, like other publicly listed organisations, understands the need of establishing rigorous internal procedures and policies. One of BlackBerry’s most important tools is its Code of Business Ethics and Guidelines, which states that “not only complying with the relevant regulations, but also engaging in, and promoting, honest and ethical behaviour” is required of every worker, officials, and contractors of the firm (Awais & Samin, 2012). BlackBerry has listed “Corporate Citizenship,” “Public Policies and Governmental Relations,” “Sustainability,” “Accountability,” and “Supply System Ethics” as five of its core values on its official site. “BlackBerry aims to make a positive difference in [their] societies, leveraging the skills and assets of [their] employees and affiliates by using the potential of technology,” the business states of its dedication to corporate social responsibility (Mishra & Choudhury, 2013). Investment in strategic charity alliances, staff philanthropic endeavours via Proud2Be Programmes, and a relationship with Free the Children to inspire tomorrow’s young leaders are all key components of [BlackBerry’s] Corporate Citizenship approach.

BlackBerry is dedicated to conducting ecologically and socially acceptable supply chain administration. As a global corporation, [they] are aware that [their] distribution network touches on many different countries and regions, all of which have their own unique customs and practises when it comes to doing business. As a socially and environmentally conscious company, [BlackBerry] is aware of the need of adhering to a set of international best practices in all of its dealings and partnerships (Promsopee & Thanaphonpavee, 2010). These policies and procedures guarantee that the Company’s Board of Directors, officials, staff members and vendors of BlackBerry are all on the same page in the United States and across the world.

Target Customers

In an effort to revitalize its sales and market efficiency, BlackBerry is releasing new features and capabilities in its handsets, with a focus on appealing to younger users. Recent developments in the smartphone market have shown considerable expansion opportunities, particularly among younger users. Most of these users have a high level of education and are enthusiastic in cutting-edge cultural movements and intricate technological developments (Sirén, 2011). These buyers place a premium on interacting with others online, and as a result, they frequent social media sites like Facebook and Twitter.

In an effort to attract younger customers, BlackBerry has released the BlackBerry Messenger (BBM). The BBM is a messaging app available for BlackBerry devices. It operates in much the same manner as other well-known social networking sites, such as Facebook and Twitter. The BBM system had more than fifty million members in 2011, making it the most popular cellphone social media site in the globe (Moussi & van, 2017, p. 200). Users come from over 170 different countries, making this app truly global. BlackBerry created a one-of-a-kind platform that saves users money compared to other social media platforms since the network service is included at no extra cost. RIM Announces BBM Music – A Innovative Social Music Streaming and Discovery Service, it also has more instantaneous features than emailing services.

Reliable Communications

BlackBerry’s security protections would be useless if the company couldn’t guarantee timely and accurate message delivery. BlackBerry has launched its “The Blackberry Communication Service for almost all mobile platforms because they see messaging as a reliable key capability. More than 50 million people have joined up to use BBM, which means it has clearly been well received” (Unnikrishnan, 2011). They’ve now added a new product called AtHoc that “Helps Guarantee That Employees Are Where They Are Supposed to Be, Executing What They Have been assigned to Accomplish” and provides a complete, pre-built system to the “account for employees during and after emergencies (Matulessy & Adiansunyani, 2016). Companies that rely on a scattered workforce to do hazardous work may find this service indispensable. Currently, 70 percent of US Federal Government personnel utilize and accept this technology, and it has been embraced by firms in the healthcare, military, and oil and gas sectors.

Blackberry’s Campaign

Blackberry Limited relies heavily on indoor advertising to build its reputation. Their online presence is far more powerful than their offline one. The BB10 will reveal whether or not their efforts to develop novel and interesting initiatives for the debut of the next generation were successful (Muthukumar, Ramakrishnan & Krishnamacharyulu, 2017). Mobile shopping and social media advertising make up a significant portion of their marketing efforts, the outcomes of which are evident on their Facebook page, which is connected to ten million friends and serves as a successful means for connecting individuals in what they are discussing. Next door agency began working with Blackberry in 2010 for their “A priceless business tool at a reasonable cost” marketing for the Blackberry. Blackberry has secured a restricted license to advertise on public beaches in 2015 (Syer, Adams, Zou & Hassan, 2011, pp. 55-62). They’ve introduced an innovative strategy to that kind of marketing, such as the advertiser underwriting free internet connection for site visitors. In that scenario, each changing room will include a 4G/LTE Wi-Fi hotspot for guests to use throughout their stay.

Areas for further improvement

Security and Mobility Services

BlackBerry poses a greater risk to rivals in the security industry than any other company. In terms of long-term goals, BlackBerry plans to continue honing its whole lifecycle of security and mobile services and attracting consumers in emerging markets where technology and infrastructure are essential (Miller, 2023). As more and more businesses devote resources to making the switch to digital form, the demand for these safety and mobility services will become critical worldwide.

Since no other security service provider offers a complete “end to end” suite of products and support, BlackBerry faces stiff competition in this space. BlackBerry’s certified solution prioritizes support and user experience pleasure, demonstrating the company’s mastery in the security industry. BlackBerry is in a better position to weather any market shifts that may come as a consequence of competition because of their comprehensive service offering (Carmelino, 2015).

When compared to the competition, most businesses lack comprehensive security competence and can only provide partial solutions. Because of this, rivals are at a disadvantage since they can only compete on a service-by-service basis, while also needing to depend on ancillary, outsourced alternatives (Eisner, Nazir, Korn & Baugher, 2018). This has added complexity, which in turn has led to security flaws, poor user experiences, and increased prices.

High levels of uncertainty are to be expected in the future because of the intense rivalry and quick speed of development in the technology sector generally. BlackBerry has to be able to foresee future trends and capitalize on their important assets in security to further develop their whole lifecycle solution if they want to remain a real player in this very volatile business (Nair, Sri, & Kumar, 2014, p. 400). Increased rivalry among competitors is a possible effect, although such animosity is to be expected at the elite levels of any activity.

Innovate with hardware.

It may need a significant investment in technical and manufacturing resources to compete with Apple and Samsung in the smartphone market. BlackBerry, on the other hand, would be better to focus on developing underused technologies in order to shift the market’s equilibrium (Allen, Graupera & Lundrigan, 2010). Peer-to-peer network connectivity is a concept that’s been around for a while but hasn’t been explored on a large scale, and this might help change that. Consider how enticing it could be to have the option to purchase a phone that doesn’t need a cellular plan. Blackberry’s full QWERTY keyboard was a major selling advantage, but the firm still took too long to introduce a touch screen model. Blackberry stubbornly remained with their tried and tested model, despite the industry moving away from in-built keyboards, and thus lost favor with new generations of users (Oh et al., 2012). Blackberry’s market differentiation and credibility could have been weakened by such a radical departure from the company’s history. However, abandoning this time-tested approach was an essential move toward the future. In addition to Google’s Project Ara, other modular phone initiatives include Fairphone (Setiabudi & Tjahyana, 2013). If they are successful, they may cause a shift in the way cell phones are sold and serviced. BlackBerry may spread the word about this concept and work with businesses to create secure hardware components. If it doesn’t, another firm will fill the void. Perhaps BlackBerry’s best move is to alter the parameters of the smartphone competition.

Invest on Android.

Considering Microsoft’s ongoing efforts to increase Windows Phone usage, it’s obvious how difficult it is to gain market share with any other smartphone operating system. Being free, open source, and supported by Google, Android has effectively eliminated any competition from other mobile operating systems (Cojocaru & Cojocaru, 2013). BlackBerry 10 OS, which facilitates the adoption of Android applications, serves no useful purpose. BlackBerry has to stop hesitating about Android and start updating its enterprise-focused applications immediately.

Make great hardware.

Chen has hinted that BlackBerry might abandon its hardware business, which accounts for 41 percent of the firm’s total sales. That would speed up the firm’s decline in importance, or at least its transition away from the mobile device market. Software-only manufacturers are totally reliant on the goodwill of the leading platform providers (Firtman, 2013). There is a risk that BlackBerry will be left out of the market if Apple, Google, or Microsoft develop software that performs the same tasks as BlackBerry’s own, or if they alter the rules of the operating system altogether. Consider about how Apple compelled Adobe to alter its business strategy. Consider why BlackBerry Messenger, which is compatible with both Android and iOS, hasn’t taken the top spot as the most popular cross-platform encrypted messaging service (Finkelstein et al., 2017). It’s partly due to the fact that Apple makes the secure video calling app FaceTime the default video calling app. Even if just a small number of individuals would overlook other shortcomings in return for a physical keyboard, BlackBerry has to develop good hardware. Priv, its most recent effort to do so, seems to have failed (Barbu, 2010).

Comparison of Blackberry with rivals

Competition from the iPhone, Google Android

In 2007, Research in Motion (RIM) had obtained a market share of over 30% in the United States smartphones market, positioning itself as the second largest worldwide communications company, trailing only behind Nokia, a Finnish corporation. In the year in question, Apple, a technology enterprise from the Silicon Valley region, introduced the iPhone, which caused a significant disturbance in the smartphone industry and served as a primary inspiration for the decline of RIM (Goyat, S. (2011).

The introduction of the iPhone brought about a significant shift in the smartphone market due to its innovative touchscreen technology, enabling users to efficiently browse the Internet using Apple’s Safari internet browser. The introduction of the Apple App Store in 2008 revolutionized the requirements of the developing smartphone industry by providing an opportunity for third-party applications (Cecere, Corrocher & Battaglia, 2015).

At the outset, the leadership of RIM did not perceive rivals such as Apple and Google as formidable adversaries, given the ongoing rise in sales of the BlackBerry. In fact, the firm’s revenue figures surged to nearly US$20 billion by 2011. In that particular year, a significant shift occurred whereby customers in North America and the UK, which were previously considered as RIM’s primary markets, began to exhibit a preference for iPhones and Android phones developed by Google (Yun, Won & Park, 2016, p. 20).

As a response to intense market competition, RIM introduced the BlackBerry Storm in 2008, which involved the removal of the QWERTY keyboard that had been a hallmark feature of its devices. RIM’s latest touchscreen device received significant criticism from users who expressed dissatisfaction with the device’s text entry functionality, citing a loss of ease in this regard. The BlackBerry operating system was deemed inferior by critics in comparison to the one invented by Apple (Fan & Yang, 2020).

RIM introduced the BlackBerry Torch in 2011, but its sales were not as successful as the iPhone. In 2010, RIM acquired QNX Software Technologies from Harman Global, but the execution process was protracted and RIM had to lay off 2,000 staff members. The QNX software was introduced on the PlayBook, but it failed to achieve significant sales figures.

Blackberry’s pricing strategy

Historically, BlackBerry has distinguished its offerings in the market by utilizing pricing as a key factor. In comparison to other mobile devices, the majority of BlackBerry smartphones are retailed at a higher price point. The aforementioned strategy is employed by the firm in order to underscore to the market the outstanding level of quality inherent in the production of BlackBerry devices (Mohini, Kumar & Nitesh, 2013, p. 2320). BlackBerry seems to target the market perception that associates higher prices with superior quality. BlackBerry’s pricing strategy is relatively higher in comparison to its competitors such as Samsung and Nokia, even for items that fall within the same price bracket as those offered by competitors. BlackBerry Limited employs an introductory pricing approach for newly launched products. This implies that the organization adopts a pricing strategy that involves setting its goods and services rates at a comparatively lower level than its rivals (Garg & Baliyan, 2021). The implementation of an introductory pricing approach enables the firm to enhance the generation of trial, attain greater penetration, and result in the creation of heightened brand awareness and recall (Fan & Yang, 2020). BlackBerry Limited employs a competitive and assertive pricing strategy for its current products. This guarantees the prompt availability of products at competitive price points (Garg & Baliyan, 2021). The implementation of assertive and competitive pricing tactics has enabled BlackBerry Limited to attain substantial growth and experience. This approach has facilitated the establishment of customer loyalty and a dedicated following, primarily based on the quality and features of the product, rather than its price (Mohini, Kumar & Nitesh, 2013). Consequently, this has resulted in the creation of greater brand equity as well as value for BlackBerry Limited.

Geographic segmentation

Geographic segmentation refers to the practice of dividing a market into smaller subgroups based on their geographic location. This approach allows businesses to tailor their marketing strategies and product offerings to better meet the needs and preferences of customers in specific regions or areas. Smartphone manufacturers employ market segmentation strategies based on geographic locations to effectively target the worldwide market (Miller, 2023). Apple Inc. primarily focuses on developed markets, such as the United States, Canada, the United Kingdom, and Japan, among other affluent nations. The company’s marketing strategy does not prioritize emerging markets due to the relatively low purchasing power of consumers in these regions (Firtman, 2013). BlackBerry has historically concentrated its marketing endeavors on affluent markets, such as North America and Western Europe, while allocating fewer resources to promotional activities in other emerging economies with relatively lower buying potential (Setiabudi & Tjahyana, 2013). In contrast, Nokia and Samsung employ a global marketing strategy, seeking to attain the benefits of economies of scale by promoting their products in various international markets. In contrast to Apple and BlackBerry, Nokia and Samsung offer low-end products that are priced comparatively lower and are accessible even in emerging markets.

Conclusion

The current discussion has shown why Blackberry and its management must take immediate action to save the firm. The firm’s recent strategic initiatives should be understood in the context of its decline from its former position as market leader and source of profitable growth. Furthermore, Blackberry and its management must do their best to compete with Apple and Samsung in the smartphone market. Blackberry is one of the most reliable options for a second phone in the workplace since it is widely available in over 100 countries across the globe and is thus widely used. Many rivals to Blackberry have developed in the 21st century, yet Blackberry continues to enjoy near-monopoly status among highly educated, successful individuals. Therefore, it has placed an emphasis on satisfying all the needs of individuals right now and working towards making Blackberry the most cutting-edge, feature-packed Smartphone option available.

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