Due to an unsatisfactory sales  performance of the new smartphone, Blackberry announced that the company had lost nearly one billion in 2nd quarter; the revenue also declines 45 percents compared to the same period last year. Although in august the company already cut down 4500 jobs in order to reduce expenditure, it still can not recover from that massive, devastating loss. Therefore, Blackberry recently  decides to make an alternative plan with it’s biggest shareholder- Fairfax Financial. The initial negotiation states that Blackberry agrees to sell itself for 4.7 billions to FairFax Financial and turn the company to private.

In my opinion ,the reason why Blackberry can not turn itself around is because the lack of innovation.  BlackBerry used to dominate the market  and held  50 percents of market share back in 2009, but in 2013 , it only left with 3 percents. There are lots of competitors in this market that constantly innovating and produce the product that has new, “wow-factor” to the consumers. For instance, majority of the mobile manufacture companies like Apple, Samsung have changed their mobile keyboard system on the touch screen; only Blackberry retains the traditional keyboard.  As the result, consumers ‘ preference change from traditional keyboard to touch screen one thus the demand for BlackBerry’s product decrease.

Sources:

“BlackBerry loses $965M in 2nd quarter.” CBC NEWS 27 09 2013, n. pag. Web. 28 Sep. 2013. <http://www.cbc.ca/news/business/blackberry-loses-965m-in-2nd-quarter-1.1870447>.

Fontevecchia, Agustino. “BlackBerry To Go Private In $4.7B Deal As Fairfax Bets On Enterprise Business.” forbes.com 23 09 2013, n. pag. Web. 28 Sep. 2013. <ww.forbes.com/sites/afontevecchia/2013/09/23/blackberry-to-go-private-in-4-7b-deal-as-fairfax-bets-on-enterprise-business/>.