Blackberry, once the leaders in the tele-communications world, stated that they would have a loss of $950 million to $995 million. Blackberry was once the best business phone a professional could buy, then it became a social status to own in the society. But now, blackberry’s market share has fallen so drastically, they decided to cut off 4500 jobs from their company because they could not afford to pay them, hence they didn’t need such a big work force as they were not selling their products as much as they used to. According to BlackBerry shares sink amid layoffs, expected $1B loss, Blackberry’s shares have fallen down by 16% to $9.08 which is almost as low as their 52 week low of $6.10.
Blackberry has to formulate some strategies by which they could improve their market share and their profitability so that they could get out of this stand still that they are stuck in. As we studied in class, marketing and accounting are two completely distinct fields but if they work together and share their different inputs, they can change the face of a company.
By lowering their costs and wastage in their processes, they can save on money which will increase their total revenue. At the same time, if they advertise their phones in a way that would attract their potential customers, they would be able to increase the sales of their mobiles. As we can see, we used marketing and accounting together, which leads to an increase in the total revenue earned by the firm. But of course, Blackberry is in a situation where they will have to apply a lot of different strategies to help them come out of their current state that they are in. The strategies will not only connect accounting and marketing, but all the other departments, as well as they need to restructure their entire organization in a way to increase the efficiency to the optimum level, along with that they need to cut off the current staff and hire specialized staff so that they could increase their efficiency. this process of finally being able to get out of the stand still, will take time as Blackberry is making very high losses at the moment.
