BlackBerry is a fallen star of the smartphone industry, while thing go from bad to worse for it. BlackBerry’s share price went down to less than $10 per share in 2013, the lowest since BlackBerry came into the market.
What can be the alternative strategy for BlackBerry?
Clearly, the operating system developed by BlackBerry, BlackBerry 10, is a delayed operating system. BlackBerry 10 is not strong enough to compete with Android and IOS.
Smartphone users don’t buy BlackBerry anymore. The demand for BlackBerry is so low that BlackBerry should find other ways to cover its fixed cost rather than producing smartphones.
From my perspective, one way is to sell BlackBerry to large company in the software area, such as Microsoft, Google and Apple. BlackBerry can provide technology support to these large companies. Applications and services provided by BlackBerry is necessary for these large companies because communication security is extremely important for them.
Another way by which BlackBerry can survive is that continue to produce smartphones when the revenue can cover the variable cost until the machinery wears out. And then, BlackBerry concentrates on developing software instead of developing hardware.
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