BlackBerry heading in the wrong direction

Photo by Chris Young

Photo by Chris Young

In an article on The Globe and Mail, I read that BlackBerry is looking to expand into the Chinese market after their CEO, John Chen, met with executives from Xiaomi Corp and Lenovo Group Ltd this past week. Although this may seem like a possibly lucrative deal for BlackBerry, with sales in their current market failing to meet expectations, I believe it is a move in the wrong direction.

In my opinion, BlackBerry is looking at the big picture before addressing the issues they are facing within their local environment. Even with the recent introduction of the Passport, the current BlackBerry line-up is seemingly outdated to most consumers in the North American market. Therefore, expanding at this time is not an ideal decision as the Chinese market poses even greater competition and an unnecessary hurdle during a difficult period in the company’s history. Instead of gaining exposure on their existing products through the vast Chinese market, I believe BlackBerry must focus on the innovation of their future products and conduct extensive research of their current market in order to compete with the likes of Apple and to fully maximize the potential for consumer satisfaction.

Through market research and innovation, BlackBerry can test the demand of its new concept on the North American market, before deciding to expand to foreign markets. Otherwise, they will inevitably suffer from the continued exposure of its outdated products on a global scale, at a time when BlackBerry cannot afford another setback.

 

References

http://www.theglobeandmail.com/report-on-business/blackberry-seeks-china-partnerships-as-chen-meets-lenovo-xiaomi/article21518409/

Target, the modern retailer

Photo by Jodi Hill

Photo by Jodi Hill

Interestingly enough, I heard of Target for the first time through the Ellen DeGeneres show. While I watched in envy as she gave out expensive merchandise and $500 gift cards from Target during her annual Christmas giveaways segment, I was intrigued by how quickly my preferences for retailers shifted towards them.

According to Eva Liu’s blog post, Target overcame initial hardships to thrive in the Canadian market by offering 3.5% cheaper prices than their rivals Wal-Mart. However, I believe the fundamental reason behind Target’s success in all of its ventures is because they have redefined the role of a modern retailer.

Similar to how Red Bull became more than an energy drink company, Target has transcended the retail industry by coupling a differentiation strategy with the traditional low cost strategy to market their brand. By forming key partnerships with influential celebrities such as Ellen DeGeneres and major sports organizations like the Minnesota Twins, Target has disrupted their industry, putting significant pressure on rivals to merely follow their pace.

As a result, I believe Target has formed an attractive brand image that has firmly embedded itself into the dominant, millennial customer segment. In my opinion, as long as Target continues to interlink the differentiated marketing strategy with its low cost guarantee strategy, they have no bounds for how far they can shape the modern retailer.

 

References

https://blogs.ubc.ca/evaliu/2014/10/05/the-price-battle-target-vs-walmart/

http://minnesota.twins.mlb.com/min/ballpark/

http://mic.com/articles/9184/target-gay-t-shirts-and-ellen-degeneres-jc-penney-partnership-show-capitalism-comes-with-a-gay-face