The Fall of BlackBerry

BlackBerry was once the top mobile phone company, and almost every businessman had a BlackBerry. But, in recent years, as Apple has emerged, the market share of BlackBerry has dropped significantly. What has caused this dramatic drop in BlackBerry’s market share?

First of all, according to Porter;s Five Forces, clearly the emerge of Apple and Samsung has a huge effect on BlackBerry’s market share. This is called ” the threat of substitutes” where buyer incline to other substitutes (Apple and Samsung smartphones). As a similar product with better function been introduced, customers will substitute to the better product, and will therefore cause BlackBerry’s market shares to drop.

Secondly, BlackBerry is lacking of newness because it was insisting to have keyboard instead of teach screen, but meanwhile the current trend of smartphone is to have a touch screen. In the BlackBerry era, mobile phones are for business uses, whereas in recent years mobile phones are combined with leisure uses, and it is no longer only for business use. As value propositions determines whether the customers will stay with your product or will they turnover to other products, when BlackBerry is lacking all these value propositions, customers will turnover to other companies that satisfy these values.

 

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