BlackBerry’s new Passport – enough to get back into the competition?
In this blog, Leonardo consider that Blackberry is utilizing the differenciation strategy in Porter’s Generic Strategics. Under intense competition in smartphone market, Blackberry was nearly defeated by its rivals (e.g. Apple, Samsung etc.). To get rid of this situation, Blackberry released a new phone: Passport. It is a passport-sized smart phone with a squre sreen, with is one of the features that differentiates it from other smart phones. There are also other features like HD Display and longer battery life.
In my opinion, according to Porter’s Five Forces, Blackberry should consider two of these five forces seriously, Threats of Substitutes and Buyer Power. In terms of Threats of Substitutes, which is an important aspect, it is obvious that Apple and Samsung are two major competitors. Apple is recognized by its distinctive concept (i.e. simplicity) and its special attractiveness. And Samsung’s smart phones have big and HD screens and there are many different tpyes which give consumers numbers of choices. Compared to these two rivals, Blackberry is actually not that competitive, although it used the differenciation strategy and has the new Passport. When it comes to Buyer Power, Blackberry currently has no speicial features, such as new and practical technology, attractive appearance and excellent UE (user experience), to attract consumers. And there is a tendency that built-in keyboard is more acceptable, while Blackberry still use the external keyboard.
To conclude, although Blackberry use the differenciation strategy, it still is not so relatively competitive.
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