1. Apple vs Blackberry
Naomi Angel O. Caparal
BA 190 - Strategic Management
University of the Philippines
Prof. Mita Angela M. Dimalanta
2. { {VISION and MISSION VISION and MISSION
“We believe that we are
on the face of the earth to
make great products and
that’s not changing... “
“…Apple has reinvented the
mobile phone with its
revolutionary iPhone and
App store, and is defining
the future of mobile media
and computing devices with
iPad.”
“Create a digital community
to serve the needs of
business professionals,
giving them the insight they
need to maximise the
benefits of smartphones’
“Is to be recognized as
the world's best
telecommunication and
wireless devices
company…”
6. Over time, from the ratios, Apple was experiencing steady growth
and was surpassing Blackberry in sales and had greater net income.
Performance difference is apparent in 2012 where, from the activity,
leverage, liquidity and market ratios, Blackberry was already lagging
behind.
Blackberry’s overall operations were slow, they kept inventories
longer than they could sell them and turn into profit.
Shareholders valued Blackberry’s assets less than Apple’s, thus, more
investors opted to finance Apple’s stocks.
This in turn, increased the overall value of Apple over Blackberry in
the tech-industry.
7. Heins as Blackberry CEO could focus on rebuilding the brand
that Blackberry stood for - simplicity and security.
In terms of ratios, it is not good to keep their inventories long
since it entails costs.
Marketing and sales initiatives and promotions are needed to
sell their products which will translate into profits.
In the capital intensive tech-industry, Blackberry is not
utilizing their fixed assets as they are incurring more costs due
to depreciation.
8. Overall, Apple performance is consistent, though there is a
noticeable slowing of growth between 2011 and 2012.
It is consistent as they were really able to penetrate the market
due to their competitive advantage.
Their leverage ratios should always maintain a balance between
equity and debt.
Continued sustainability of the fast turnover of inventory will
maintain high sales and therefore, produce high profits.
9. Chen, J. (2013). BlackBerry CEO: Here's our new strategy. CNBC. Retrieved 26
August 2016, from http://www.cnbc.com/2013/12/30/blackberry-ceo-
heres-our-new-strategycommentary.html
Enderle, R. (2016). Apple vs Blackberry vs The FBI vs Bill Gates. IT Business Edge.
Retrieved from http://www.itbusinessedge.com/blogs/unfiltered-opinion/apple-
vs.-blackberry-vs.-the-fbi-vs.-bill-gates.html
Goldman, C., Apperian, C., Reed, B., Products, V., & World, N. (2016). iPhone or
BlackBerry: Which Is Better for Business?. PCWorld. Retrieved 28 August 2016, from
http://www.pcworld.com/article/185762/iphone_vs_blackberry.html
Jurevicius, O. (2013). BlackBerry mission statement 2013. Strategic Management
Insight. Retrieved 26 August 2016, from
https://www.strategicmanagementinsight.com/mission-statements/blackberry-
mission-statement.html
REFERENCES
10. Meyer, P. (2015). Apple’s Generic Strategy & Intensive Growth Strategies -
Panmore Institute. Panmore Institute. Retrieved 27 August 2016, from
http://panmore.com/apple-inc-generic-strategy-intensive-growth-
strategies
Rothaermel, F.T. (2015). Strategic Management. USA: McGraw-Hill
Education
Rowland, C. (2015). Apple’s Vision Statement & Mission Statement -
Panmore Institute. Panmore Institute. Retrieved 26 August 2016, from
http://panmore.com/apple-mission-statement-vision-statement
Skipworth, H. (2010). BlackBerry vs Apple: Which is better for business
users?. Telegraph.co.uk. Retrieved 26 August 2016, from
http://www.telegraph.co.uk/technology/mobile-
phones/7750578/BlackBerry-vs-Apple-Which-is-better-for-business-
REFERENCES
Editor's Notes
Prior to the introduction of the iPhone in 2007, however, the Canadian high-tech company BlackBerry was a global leader in wireless communication. As an early innovator, BlackBerry defined the smartphone category and changed the way millions of people around the world live and work. At one point, the BlackBerry smartphone was a corporate status symbol.
VISION OF APPLE INCWe believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.
the vision statement enumerates a number of major points, such as the emphasis on innovation, which directly relates with Apple’s rapid innovation strategy. In addition, the vision statement specifies simplicity, which is also an integral aspect of the company’s approach to product design and development. Apple is known for user-friendly and easy-to-use products that help improve daily activities. For instance, the simplicity of the design of iPhone and iOS make it easy to communicate, use apps, and access the Internet. Moreover, Apple’s vision statement shows careful selection of markets. This factor reflects the firm’s use of market research to guide decision-making in product development and strategic formulation. Also, even organizational culture is included in this vision statement. Apple highlights employees’ collaboration and excellence as keys to its business
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.”
Apple’s vision statement is comprehensive and detailed enough to show the firm’s future direction. It covers various aspects of the business. Thus, this vision statement is satisfactory and suited to the condition of Apple. However, the company’s mission statement can be improved. The details about products and defining the future of mobile media are strong points. However, Apple’s mission statement fails to indicate actions or goals for other areas of the business. It lacks details about factors like innovation and market leadership, as well as corporate social responsibility, among others. Apple’s mission statement is specific, manageable, achievable, and realistic, but it is too narrow. It does not properly encompass Apple’s global business. Therefore, this mission statement can be improved by widening its scope to include details about the different businesses of Apple.BLACKBERRYVISIOON-Is to be recognised as the world's best telecommunication and wireless devices company, by infinite the possibility of the innovation and creation to produce our product and software devices; to ensure and enhance product quality as well as to satisfy our customer's unlimited demand in future. We will provide on-going development towards our product and customer services in order to become the best in terms of customer value, employee talent and predictable growth so that it may achieve competitive advantage in this industry1) Major part of their success is its simplicity. Even though the RIM mobile devices have several features it is designed in such a way that it is easy for the consumers to hreatsuse like email and calendaring.
2) The company gives complete emphasis on cost effectiveness rather than spending more for less. A classic example of this is that even though the iPhone is something that is flashier and more expensive than blackberry, the latter is slightly cheaper and can be operated more efficiently.
3) As per recent statistics, the RIM smartphone is going through a declining trend in various markets but is growing rapidly in emerging markets where majority of the focus is. The company has also changed focus from high end products to low end products such as Curve or Tour series.
4) The core competence of RIM is not the applications or email but it is the BlackBerry Messenger or what is commonly known by everyone as BBM. Why is it an advantage, because it is cheaper less complex and easier to use. Does not matter which part of the globe you reside in communication can always take place because of BBM.
5) Attract more entertainment focused consumers instead of relying solely on business segment by increasing its advertising.
6) RIM has ties with more than 70 phone operators and growing around the world offering smartphone products. For every new customer these operators pay a sum of $5 to $10 to RIM for BBM messaging. This has created a solid base for RIM to expand its business for the future.
a firm’s managers must be able to accomplish two critical tasks:
1. Accurately assess the performance of their firm.
2. Compare and benchmark their firm’s performance to other competitors in the same industry or against the industry average.
One of the most commonly used metrics in assessing firm financial performance is return on invested capital (ROIC), where ROIC 5 (Net profits/Invested capital). 1 ROIC is a popular metric because it is a good proxy for firm profitability. In particular, the ratio measures how effectively a company uses its total invested capital, which consists of two components: (1) shareholders’ equity through the selling of shares to the public, and (2) interest-bearing debt through borrowing from financial institutions and bond holders.
As a rule of thumb, if a firm’s ROIC is greater than its cost of capital, it generates value; if it is less than the cost of capital, the firm destroys value. To be more precise and to be able to derive strategic implications, however, managers must compare their ROIC to other competitors.