Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 17 pages
Data source: Published sources
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Abstract
Research in Motion’s (RIM, now BlackBerry) success vis-a-vis its handsets saw no bounds between 2007 and 2010. The US President Obama vouched for it, so did other high-profile users. Peaking at a user base of about 80 million, the fanaticism behind it was coined ‘CrackBerry’, denoting the device’s highly addictive nature, particularly the keyboard that had many enthusiasts. However, RIM ended up as one of those companies that got engulfed in its own success after witnessing exponential growth, often ignoring changing consumer preferences and competition. The Apple iPhones’ burgeoning demand drastically impacted RIM’s fortunes. Rising competition, changing market dynamics, internal differences and misplaced strategies left Blackberry in the lurch. Its global market share tanked to under 1%, while its profits bore a similar fate. The swift and unanticipated decline (2010-2013) stunned the technology sector. John Chen, who took on reigns as CEO in late 2013, made strategic changes to salvage RIM and assured investors of a positive future. His 8-quarter turnaround plan was replete with job and cost cuts. However, analysts opined that BlackBerry’s future predominantly lay on the success/failure of one device - The BlackBerry Passport (Passport). Launched in September 2014, the Passport was touted to play a critical role as BlackBerry reeled in dire straits. It was an unconventional looking smartphone that was essentially aimed at winning back the market BlackBerry once ruled - the ‘enterprise’. But, was it innovative enough to save BlackBerry that certain analysts felt had a grim future?
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Abstract
Research in Motion’s (RIM, now BlackBerry) success vis-a-vis its handsets saw no bounds between 2007 and 2010. The US President Obama vouched for it, so did other high-profile users. Peaking at a user base of about 80 million, the fanaticism behind it was coined ‘CrackBerry’, denoting the device’s highly addictive nature, particularly the keyboard that had many enthusiasts. However, RIM ended up as one of those companies that got engulfed in its own success after witnessing exponential growth, often ignoring changing consumer preferences and competition. The Apple iPhones’ burgeoning demand drastically impacted RIM’s fortunes. Rising competition, changing market dynamics, internal differences and misplaced strategies left Blackberry in the lurch. Its global market share tanked to under 1%, while its profits bore a similar fate. The swift and unanticipated decline (2010-2013) stunned the technology sector. John Chen, who took on reigns as CEO in late 2013, made strategic changes to salvage RIM and assured investors of a positive future. His 8-quarter turnaround plan was replete with job and cost cuts. However, analysts opined that BlackBerry’s future predominantly lay on the success/failure of one device - The BlackBerry Passport (Passport). Launched in September 2014, the Passport was touted to play a critical role as BlackBerry reeled in dire straits. It was an unconventional looking smartphone that was essentially aimed at winning back the market BlackBerry once ruled - the ‘enterprise’. But, was it innovative enough to save BlackBerry that certain analysts felt had a grim future?