Blackberry has recently announced that they are planning to cut 4500 global jobs (which is equals to 40% percent of its workforce) in order to curb their company crisis. According to the firm’s second quarter sale reports, it is expected a loss about 955 million dollars. The company claims that the losses are primarily associated with the poor sales of new Z10 model smartphone. In the recent COMM 101 class, we have used the SWOT analysis to discuss why this “once a pioneer” in the smartphone field is now facing many internal and external difficulties. The brand image of Blackberry has damaged and become its major weakness after many delays of releasing new phones. The delays of the z10 smart phones have reduced consumer’s desire and make people doubted about the quality of the phone; hence, many loyal customers choose to stick with their old blackberry instead of buying a new one. As a result, the blackberry’s chief executive Mr. Heins said that only 2.7 million out of 6.8 million shipment of z10 has shipped in the past 3 months. Another problem with the Blackberry is that they have experienced many system failure all over the world in the past year. In order to back to the top, Blackberry needs to focus on software and app improvement (apps are too limited) as well as branding and broadening their target populations.
Read More:
“Blackberry to Cut 4,500 Jobs amid Earnings Plunge.” BBC News. BBC, 20 Sept. 2013. Web. 28 Sept. 2013
Russell, Johnathan. “BlackBerry’s Problems Began with Apple’s Success.” Telegraph. N.p., n.d. Web. 28 Sept. 2013. <http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/9033921/BlackBerrys-problems-began-with-Apples-success.html>.