The latest news in the Smartphone industry that I couldn’t ignore is the fall in the market share that BlackBerry Ltd has faced. Due to high competition that exists in the Smartphone industry and the rapid changes that occur due to technological improvements, companies within that industry need to be cutting edge and their R&D departments must always try innovative thinking. BlackBerry didn’t manage to accomplish either of these.
According to market research firm ABI research, BlackBerry smartphone business is in free fall with market share of less than 2% in the third quarter of 2013.
The fall in the market share of the company is linked with the Porter’s five force Analysis (competitor analysis) that we learned in class. The theory, gives managers some insight of the degree of competition. Blackberry, despite being in a very competitive industry, ignored the rapid growth and development of the other firms (major competitors Apple, Samsung). The company didn’t recognize that consumers’ tastes and preferences were changing. Changes in the operational system didn’t occur within Blackberry when a new model was introduced. All these factors led to the decline of the once major smartphone producer.
Source:
http://bgr.com/2013/10/30/blackberry-market-share-q3-2013
photo source:
http://www.theverge.com/2012/1/17/2712775/rim-blackberry-10-long-road-developers
http://bgr.com/2013/10/30/blackberry-market-share-q3-2013