1. Blackberry's current strategic situation is that of a company which is undergoing a period of transition. The company, facing years of heightened competition from tech giants Apple and Samsung, simply could not remain competitive as people embraced the concept that the aforementioned tech giants brought them. Blackberry, or RIM as it was known then, was reliant solely on phones that had physical keyboards, and the main selling point was instant messaging through the famed BBM. However, even though a lot of loyal consumers of RIM continue to stick with the company, the advances in technology that Apple and Samsung brought to the mass market was simply too much to ignore. RIM, as a result, suffered from a lack of sales. Now though, Blackberry is trying to turn the tables by focusing on virtual keyboard phones that mimic offerings from Apple and Samsung. The phones are designed around Blackberry's latest interface, the '10', and aim to bring the same sort of user experience that the iPhone and Galaxy phones do.
It is important to consider what the transition holds for Blackberry's future, and here is a SWOT analysis defining the company's position:
Strengths :
- Streamlined User Experience which is unique to Blackberry.
- The presence of Blackberry Messenger.
Weaknesses :
- Struggle to recapture lost customers.
- Too late into the touch screen foray.
Opportunities :
- Reorganization of resources that allow for better focus.
- Blackberry can learn from the company's previous mistakes.
- Opportunity to capture new customers that like the user experience Blackberry phones provide but want a touch screen.
Threats :
- Presence of tough competition from Apple and Samsung.
- Presence of Apple's iOS and Google's Android Operating System.
2. Blackberry's new CEO Thorsten Heins, who took over the company's reigns after the company struggled to keep its losses down, has developed a new strategy for the company so that it becomes competitive once again. The first part of the strategy Heins and his team have developed is the focus on providing customers with a user experience that is both streamlined and built to last. According to Heins, the company wants the new operating system dubbed Blackberry 10 to last for more than a decade. The focus on a long lasting operating system is to ensure that customers of Blackberry do not feel left behind and out of sorts in the highly competitive mobile phone landscape. In addition, the move is to ensure that creates new loyalists that stick with Blackberry as time goes by. The second part of the strategy is the focus on touch screen phones. For Blackberry, making touch screen phones is an area the company has never explored before, but judging by the kind of success Apple and Samsung have managed to achieve, the chances of the Blackberry being successful are remote due the momentum the two competitors have managed to gather. However, Blackberry's strategy is to not focus primarily on making touch screen only phones, as the company wants to bring its new operating software to both slide out, and traditional keyboard phones. Therefore, Blackberry wants to provide customers with a huge amount of choice, and this is part of the company's focus on easing Blackberry's new operating system into the mass market. The company does not want to 'force' anything on consumers, and this is a strategy that has a high chance of success.
3. Blackberry's sales figures have been plummeting ever since Apple launched its iPhone back in 2007. The company saw its revenues drop by a massive 50% in the US, while its market share fell by a huge amount as well (became 12% only). Recovering from such a bleak and battered position is surely going to be tough on Blackberry, even more so when we consider the presence of companies such as HTC, LG, and Motorola who continue to raise their game. However, Blackberry is betting on support from carriers and Blackberry loyalists who the company hopes will help keep the company make a successful re-launch. However, it all sounds too little too late for the once dominant mobile phone manufacturer, as even though Blackberry is sure to get a lot of support from the sides mentioned above, the growing competition from other mobile phone manufacturers is surely too much to match. Google's Android is currently the king in terms of market share with a massive 51%, while Apple's iPhone has 31% of the market under its belt. Considering these statistics, it is hard to imagine that Blackberry will be able to re-capture its lost market any time soon. In addition, since it is the first time the company is making the transition to touch screen phones, it will surely face some struggles in the form of resistance from loyalists. Therefore, while it might be able to create new customers, Blackberry might also lose some of its existing customers.
References
RIM's new CEO sticks with strategy. (n.d.). Wall Street Journal. Retrieved January 26, 2014, from http://online.wsj.com/news/articles/SB10001424052970203806504577178660064171778
Engadget. (n.d.). Engadget. Retrieved January 26, 2014, from http://www.engadget.com/2012/05/01/rim-dont-worry-blackberry-10-devices-with-keyboards-are-on-th/
Engadget. (n.d.). Engadget. Retrieved January 26, 2014, from http://www.engadget.com/2012/07/09/thorsten-heins-bb10-delay/
Do You Trust RIM?. (n.d.). SlashGear. Retrieved January 26, 2014, from http://www.slashgear.com/do-you-trust-rim-13227981/
