In Prithvi Khanna’s blog The Fall of Blackberry, the fall of Blackberry, one of the previous biggest company in the smartphone market, was clearly analyzed with statistics.
As a background information, before the trend of the screen touch hit the smartphone market, Blackberry had a huge market share, for example 20.1% in the quarter one in 2009. However according to the statistic, there is only 0.1% market share for Blackberry in the quarter two in 2016.
I agree with the reasons the author offered within the blog, which mainly contains 2 reasons of the brand’s failure. Firstly, Blackberry underestimated its competitors such as Apple and Samsung at that time. Based on the brand’s success at that time, the CEO and managers didn’t forecast the future of the smartphone industry, as well as they ignored the developments of other potential competitors. Secondly, Blackberry lacked of innovation. As Apple and Samsung equip themselves with their own app stores, Blackberry didn’t update its system, as well as it doesn’t keep up with the trend of screen touch smartphones, therefore Blackberry faced a market failure.
However, the connection between the Blackberry and the concepts covered in class could be strengthened. The mention of the business and strategy is a great idea. In my opinion, the author could improve the blog by coming up with advices to Blackberry.
For example, in order to solve the problem in association with the innovation, Blackberry could divide its Customer Segments into two parts, for those businessmen who have the requirement to deal with emails and schedules, Blackberry could offer them with the traditional phones with buttons, for those who are addicted to new technologies, Blackberry could produce new screen touch smartphones to meet the satisfactions. Also, the author could connect the situation that Blackberry is focusing on software to the concept Value Proposition. Based on the fact that the net loss of Blackberry is $372 million in 2016 (Fried), Blackberry no longer has the ability to compete with other smartphone companies. According to the decision of switch to software producing only, the Blackberry actually changes its Value Proposition to offer the market with qualified software and reduce the costs of the company in order to save the brand.
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References:
Blackberry will stop designing its own phones and focus on software
Global smartphone OS market share held by RIM (BlackBerry) from 2007 to 2016, by quarter