One of the shareholders of Blackberry accused the firm posting misleading and over-optimistic information about the prospects of its 10 smartphone line.
With the emerging of Apple Inc and Google Inc, Blackberry is losing market shares quickly in recent years. So that the share price of Blackberry is falling rapidly, so as the financial situation of Blackberry Inc. It is not the first time Blackberry is having conflicts with its shareholders. In addition, Blackberry is having serious financial crisis within the organization. Because of not reaching the units of break-even, It has to cut off almost 40% of total workforce within the organization, which means Blackberry has a trouble on cash flows and expenses.
From the course we had in COMM101and this Blackberry Case, now we know the importance of having flexible cash flows, product innovation and market segmentation.The Blackberry fails to employ the original amount of workers because they do not have enough money to pay for them. They can forecast this problem early because of using break-even cost grid. This can help them to get the correct number of units they need to sell in order to run with profits. In order to back to the market, Blackberry needs to use product positioning to exploit innovative smartphones.