Only today, Blackberry’s stock increased by 6% after CEO John Chen discussed future expansion and partnerships with Chinese firms. Interestingly enough, in a blog post published a month earlier, Minhan (Micheal) Hao recommended that the smartphone company concentrate on the low-income Chinese market because Apple’s high price-point created an economic opportunity for a cost leader to emerge. I applaud my fellow classmate on his foresight, however I propose a contrasting recommendation for where Blackberry should go from here.

Blackberry has the potential to bounce back if it can prove to Chinese businesses that it truly is the leading provider of secure smartphone devices.

Considering that the most appealing points of difference for Blackberry are its enhanced security and privacy features, I advise John Chen to position the brand as the most secure platform in the minds of Chinese business owners. Targeting foreign businesses is a much more logical approach for the company as it is consistent with its current strategy in North America. Regarding Michael Hao’s suggestion, despite the fact that Apple is not prominent among the lower-income Chinese market, there are many local competitors, such as Xiaomi, who are popular for their affordability. These firms have a price-competitive advantage as they can significantly reduce production costs due to their locality.

Focused market research is necessary for Blackberry to appeal to a new customer segment in a foreign market.

To implement my strategy Blackberry will need to conduct exhaustive market research to find ways in which it can better relieve the pains of these Chinese enterprises through its value proposition.

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