It is evident that Blackberry is vigorously trying to save the company from absolute bankruptcy with the new Passport Phone, but they may not see evidence of profit until at least 2016.
Passport Phone- www.express.co.uk
There are many reasons why Blackberry is in decline. The most prominent reason being that in the amount of time it takes to develop a new Blackberry smartphone, 3 new iPhones have already been released. Second to that, Blackberry lies within the Focus Strategy (differentiation) on Porter’s Generic Strategies rubric, whereas Apple lies within Differentiation Strategy. Apple’s target market is much broader than that of Blackberry, seeing as how Blackberry only targets government officials and business folk. While differentiation may be the one thing that saves Blackberry from extinction, a narrow market may be the thing that kills it.
Now, on to some jargon that is oh so known by economists: Opportunity Cost. It will take all the profit that Blackberry previously made in its years of success to compensate for the lack of profit being made currently. In other words, the opportunity cost of possible profit from new models (including the Passport Phone) is all the savings the company has. Is it even worth it? What if, in the end, Blackberry still doesn’t make money? Then the company leaves with nothing but shame and a rolling tumbleweed.
What will be left of Blackberry if they fail- lessonslearntlastnight.wordpress.com
While the risk that the company is taking is high, I applaud them for not giving up. Good luck against Apple, old friend.