Blackberry is a Canadian-based company that was once a market leader in mobility solutions. However, its products have faced significant challenges from the leading industry players like Samsung, Sony, and iPhone among many others.
The company has, however, refused to face out, introducing different kinds of new strategies and relying on its core strengths to remain existing in the market. Most of the strategies it has launched previously have failed due to the rigid and closed operating system it has been using. However, the company finally gave in to pressure and embraced both android and windows platforms in 2016.
The company has therefore combined the customer needs in the market with their strong reputation of ambient security to offer the enthusiasts with mobility solutions that can be very competitive in the market. How successful the ambitious strategy would remain a major area of interest, but various informing elements like the risks, challenges, and opportunities surrounding the new strategies are evident in the market.
This paper explores the cases of the telephone company new strategies released in 2016 to embrace its key strengths, and the market needs to develop solutions that are believed to be game changers. The risks factors and the opportunities are also discussed in the paper. These are followed by strong recommendations that the company can assimilate for successful strategic implementations.
Table of Contents
1. Executive Summary
2. Introduction
3. The Company Background
4. Reasons For This Business Strategy Case
5. Potential Issues That Compromise Strategic Objectives
6. The Value Of The Introduced Strategic Changes
7. Impacts Of The Strategy In The Industry
8. Recommendations
Objectives and Themes
This paper examines the strategic transformation of BlackBerry as it attempts to recover its market position by shifting from proprietary hardware manufacturing to software-focused mobility solutions, including the adoption of Android and Windows platforms. The research aims to evaluate whether these strategic moves effectively leverage the company's core security reputation to compete with modern industry leaders.
- Evolution of BlackBerry's business model and market challenges.
- Evaluation of the "Smart-In-Phone" strategy and outsourcing manufacturing.
- Assessment of platform cross-compatibility and user security needs.
- Market impact analysis in the context of global smartphone competition.
- Strategic recommendations for long-term sustainability.
Excerpt from the Book
4. Reasons For This Business Strategy Case
It is notable to explore how the company will perform in the market under the new strategic moves that the company has rolled out. According to the company, Blackberry has stopped the manufacture of the handset devices and will concentrate its efforts and strengths in the development of customer focused blackberry software (Frijlink, 2016). The work of the handset manufacturing will be outsourced to other third party agencies, and when the two are brought together under the blackberry smart-in-phone model, the management believes that it will have more customer value than the normal smartphone platforms.
According to the available industry data, one of the reasons why the company mobile iPhone market share leadership phased out in the advent of competition from Android, championed by the Samsung brand and iOS, championed by the iPhone brand is because of the BlackBerry Operating systems cross-platform rigidity (Pålsson, 2014). The software that the blackberry uses is robust, reliable and secure but very narrow that the customer does not get sufficient solution from it (Gilette et al., 2013). For instance, the only way in which two people can have an instantaneous chat through the BBM platform is when both have a blackberry. Comparatively, the chat on the Blackberry platform is a sharp contrast to the Samsung platform, as the Samsung user can manage to chat with any other user as long as they can access and install applications from AppStore or the PlayStore. The following table shows the platform market share for the phone operating systems:
Summary of Chapters
1. Executive Summary: Provides an overview of BlackBerry’s market decline and the 2016 shift towards adopting Android and Windows platforms to regain competitiveness.
2. Introduction: Highlights the dynamic nature of the mobility industry and sets the focus on BlackBerry's business model evolution under John Chen.
3. The Company Background: Recounts the history of Research in Motion and the rise of BlackBerry through its unique security features and thumbing keyboard.
4. Reasons For This Business Strategy Case: Analyzes the shift toward outsourcing handset manufacturing and the failures caused by the rigid, closed nature of the original operating system.
5. Potential Issues That Compromise Strategic Objectives: Discusses the risks of the "Smart-In-Phone" strategy and the difficulty of competing in an Android-dominated market.
6. The Value Of The Introduced Strategic Changes: Examines the introduction of the DTEK50 and new Windows-based offerings aimed at blending productivity with BlackBerry's signature security.
7. Impacts Of The Strategy In The Industry: Analyzes current market opportunities arising from competitors' product recalls and the potential for BlackBerry to regain corporate trust.
8. Recommendations: Suggests that BlackBerry must maintain focus on both secure software and hardware integration while leveraging its security reputation to combat rising cybercrime.
Keywords
BlackBerry, Mobility Solutions, Strategy, Android, iOS, Security, Smartphone, Market Share, DTEK50, Business Model, Software Development, Hardware Outsourcing, Corporate Security, Innovation, Competition.
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores the strategic reorientation of BlackBerry in 2016, specifically its transition toward a software-centric business model and the adoption of Android and Windows platforms.
What were the main challenges faced by BlackBerry?
BlackBerry struggled with market share loss due to its rigid, closed operating system and intense competition from Apple and Samsung.
What is the core objective of the new strategy?
The objective is to combine BlackBerry’s reputation for high-level security with modern, customer-focused mobility solutions that are cross-platform compatible.
Which methodology does the author utilize?
The author employs a descriptive case study approach, utilizing industry market share data and comparative business analysis to evaluate BlackBerry's strategic shifts.
What is covered in the main body of the text?
The body covers company background, the reasoning for strategic changes, identified risks, the value of new product rollouts, and potential industry impacts.
Which terms characterize this study?
Key terms include smartphone security, business re-engineering, mobility solutions, cross-platform development, and corporate market strategy.
Why does the author consider outsourcing hardware risky?
The author notes that while outsourcing allows for software focus, it may create new challenges in quality control and hardware-software integration that the company must manage.
How does the DTEK50 fit into the company's revival?
The DTEK50 represents the company’s first major move to embrace the Android ecosystem while maintaining its proprietary armored security features for privacy-conscious users.
- Quote paper
- Daniel Kamau (Author), 2016, Blackberry's new business strategy. An analysis, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/358908
