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Re-designed. Re-engineered. Re-invented.
A Case Study
Chaahat Khattar
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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Case Abstract:
The case aims at highlighting one of the classic examples of product life cycle. Even after
decades of technological advancement and evolution of information technology, the concept
of product life cycle holds true for every other industry (Exhibit 1). Blackberry has been
through every stage of product life cycle and is now in a quest to start the cycle afresh. The
case will help us understand what all factors are involved in building a world class
organization, sustaining it in one of the most competitive industries and gaining the most
loyal customers on the planet.
At the outset of the case one must understand that the life cycle which Blackberry has been
going through, almost every other organization has to go through. The longevity of the
product life cycle depends upon the composition, saturation and other economic factors of the
respective industry.
The other very important factor which this case study aims to highlight is the choice. The
choice hereby is referred to measures or the steps which any firm is bound to take at every
single level of the product life cycle. The most important and crucial decisions are usually
taken at the first stage as well as at the last and the most decisive stage of the life cycle. Every
other activity during the life cycle revolves around the choices that are adopted in these two
phases. The case well portrays the contrasting situations of companies that are also going
through the similar life cycle as Blackberry but how the decisions taken by other companies
vary from decisions taken by Blackberry’s bosses and what outshines them from their
struggling competitors.
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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Once the World’s largest smartphone maker and a pioneer in mobile e-mailing has put all the
chips it had on the poker table of the casino of world mobile technology. The company has
made its loyal customers wait for more than two years to witness the launch of a
revolutionary operating system and new range of mobile phones. Blackberry (formerly
known as Research in Motion) has seen itself go from top to bottom in the smartphone
market and instead of coming out with latest technology and bouncing back in the
competition, it decided to refine its products and present the best of the best in front of the
world after a long break.
Blackberry faces not only a stiff competition but it also faces a threat of losing its patented
technologies and solutions to its mighty rivals which have been constantly bringing new and
updated substitutes for aging Blackberrys. There was a time when every person at the
corporate level relied on a Blackberry and firms with most stringent data protection policies
forced Blackberrys’ upon their employees because of Blackberry’s most sophisticated data
encryption and protection systems. But it is universal rule for any firm to either keep up with
time or to see itself drowning. Blackberry got stuck to its operating systems which it has been
offering since years and believed that its loyal customers will not move on easily. But as soon
as better alternatives arrived in the market, people had to go with better technology and then
the firms were forced to modify their data protection policies accordingly to keep pace with
the time. The case study takes dive into Blackberry’s past, reinvented present and puts a
spotlight on Blackberry’s expected future from both Blackberry’s vision as well as the
public’s acceptance.
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Research in Motion- The Rising Sun
Based out of Waterloo, Ontario, Canada, Research in Motion (“RIM”) was the parent
company of Blackberry. Like several other technological companies, RIM was brain child of
a college dropout and a technology enthusiast. Mike Lazaridis and Douglas Fregin founded
RIM back in 1984. Manufacturing of mobile phones was nowhere the focus of the founders.
They were just fascinated by wireless technology and wanted to explore this technological
marvel further. They were so robust about their fascination that they turned RIM into first
wireless data technology developer in North America and the first company outside
Scandinavia to develop connectivity products for Mobitex wireless packet-switched data
communications networks in 1988. Mobitex was the technology which was used in paging
devices for data transmission. The company was elemental in converting Mobitex from a
simple wireless data network into a two-way wireless paging device. RIM’s progress was
backed by its successful efforts to raise funds through venture capital funding. It received
Canadian Dollars Five Million in late 1980s which helped the company in fulfilling contracts
it has been receiving from several companies. RIM’s first client was General Motors of
Canada Limited for industrial automation technology. The company continued to work on
contract by contract basis for several years. The company was having sales more than a
million dollars by the start of 1990 and it soon started leveraging upon its technologies and
had initiated the process of getting into hardware industry. In 1990, the company introduced
DigiSync Film KeyKode Reader (Exhibit 2) which has used to encode the codes found on
KeyKode strips manufactured by Kodak for videography. But the company continued to
emphasise upon its expertise in wireless technology especially after it received a contract in
1987 from Rogers Cantel Mobile Communications, Inc., a paging and cellular telephone
operator that was a subsidiary of Rogers Communications Inc. The contract required RIM to
investigate the potential of newer wireless digital network systems which were developed by
other successful and large scale technology developer firms.
By 1991, the company had started developing software to support a complete wireless e-mail
system. The company entered into several partnerships with various larger technology
companies such as Hewlett Packard to develop advanced wireless e-mail technologies for
their products.
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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The company continued to explore more and more business opportunities in Mobitex eco-
system and it was in 1992 when both Mike and Fregin realised that they had splendid ideas
but they needed someone to help the team in establishing its own brand and bringing more
synergies between its hardware and software and in reducing their dependence over other
firms. RIM welcomed Jim Balsillie, a Harvard alumnus, to help the company in
commercialising its products and turning RIM into a successful sustainable technological
company. Usually such big name hiring involves heavy joining bonuses but in RIM’s case
Jim invested quarter of a million US dollars from his very own pocket into RIM. The era of
undisputed innovations in the field of wireless mobility began post 1993. Blackberry
continued to play around on contract basis and introduced several kinds of wireless modems,
paging technology, gateway systems but still no single computer hardware behemoth
managed to utilise RIM’s technology to build a wholesome product. The company got listed
on Toronto Stock Exchange in 1997 and it successfully managed to raise more than USD 115
million from investors for its ambitious future plans.
It was in 1998 when RIM started filing for patents for what later on became one of the
benchmark devices in the history of technology. In 1999, after years of innovation, testing
and hard work RIM launched its very first device under the brand name of Blackberry. The
name Blackberry was not an idea of the founders of RIM but it was a creative outcome of
Lexicon Branding, California’s President’s David Placek brain who right from the beginning
wanted to keep the name of the product fruity and ended up choosing the name Blackberry
and RIM decided to take the same forward for indefinite period of time. The first RIM
product which was Blackberry 850 was a simple paging device with no voice support
(Exhibit 3). In its very first year, Blackberry garnered only 25,000 subscribers. Various
analysts predicted it to be a failed attempt by RIM but RIM had a pool of both investments as
well as ideas and they made sure that they would explore markets other than Canada and got
themselves listed at NASDAQ in 1999 and raised USD 250 million through the same.
Rise of the Crackberry:
RIM reinvented the QWERTY keyboard with its Blackberry 850 and aimed to move on to
the next level of technology. RIM aspired to take on the undisputed king of mobile phones-
Nokia Worldwide.
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Everything was going right on track till 13 November 2001 when a group of inventors filed a
million dollar lawsuit against RIM accusing the company of building its wireless e-mail
network by infringing on patents held by an American patent-company, NTP Inc. of Virginia.
RIM took the case very seriously but at the same time it did not let the same come in between
its highly ambitious plans. In the very beginning of 2002, RIM launched its very first full-
fledged mobile phone Blackberry 5810 which supported both voice and data (Exhibit 4). It
was not the perfect start for RIM as the stock of RIM dole-drummed to as low as USD 1.57
per share. Blackberry 5810 lacked very basic functions of a mobile phone. Such as, it did not
have any built in microphone or a speaker. One had to always plug in proprietary headphones
to use the handset for more than a mobile phone look-a-like pager. To further add to the
worries of RIM, a jury addressing the NTP lawsuit ordered RIM to pay USD 23.1 million to
NTP. 2003 was a dream run for RIM. It launched back to back premium Blackberry(s). With
Blackberry 6210, the company finally delivered a pager inside the phone and not vice versa
and with the launch of Blackberry 7230 (Exhibit 5) the company provided a wholesome
product which supported colour screen and more importantly international roaming
capabilities. RIM also strengthened its corporate reach by introducing the BlackBerry
Connect licensing program, which enabled mobile device manufacturers to equip their
handsets with the integrated ability to connect to BlackBerry Enterprise Server.
The way a Blackberry works:
Blackberry service has always been the heart of both Blackberry devices and RIM. The way a
Blackberry functions is till date one of the most coveted mobile phone feature and in years to
come it will continue to remain as the Unique Selling Point (“USP”) of RIM’s Blackberry.
The email redirection is run by the Blackberry Enterprise Service (BES) which communicates
directly with the exchange server. Alternatively there is a Blackberry Desktop redirection that
synchronizes directly with your personal computer. The process begins with identification of
Exchange (Outlook in most of the cases). The Exchange account receives the message. The
redirector looks in the email account, finds the message, and forwards it to the BlackBerry
service provided by RIM. RIM's BlackBerry service sends the message to the wireless data
network (such as EDGE or GPRS). The wireless data network provider sends the message in
a wireless signal to the BlackBerry device. (You must be in a data coverage area to receive
mail.)
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
The BlackBerry receives the signal and displays the message. Starting 2003, RIM offered its
Blackberry service to other operating system companies such as Symbian in order to cater
much wider markets across the globe (Exhibit 6).
In 2004, RIM not only celebrated its 20th Anniversary but the year marked beginning of
Blackberry’s epic rise with number of subscribers doubling in years to come. Blackberry
reached 2 million subscribers worldwide in 2004 and 4 million subscribers worldwide in
2005. At the same time company continued to expand itself globally by partnering with
telecom operators worldwide.
The ball game was changing thereafter. Initially RIM had tough time to partner with telecom
operators globally but by the end of 2005, operators worldwide were knocking on RIM’s
door to carry its Blackberry service in their respective service circles. Blackberry by 2006
had become an iconic service and it became a must have for every corporate around the
globe. Nokia kept on upgrading its bestseller Communicator in due course but the size of that
mighty phone did compete well with all-in-one and yet trendy Blackberry(s). Blackberry by
the end of 2006 had dethroned all its direct competitors such as Palm, HP, Dell, Mio etc. to
become the favourite smartphone/service or probably the gadget of not only the emailholic
people but also the celebrities across the globe.
By the end of 2006 Blackberry had 5 million subscribers worldwide in its kitty (Exhibit 7).
The company hit another record breaking level. This time the investors got glued up to RIM
and RIM’s share touched USD 124.51 per share making the company worth over USD 67.35
Billion and it became Canada’s most valuable company.
The Matured Berry:
Reaching silver jubilee of its existence, RIM had become a known and mature brand across
the globe. The company was having stable inflow and outflow of cash. The company had
paid USD 612.5 Billion to NTP and the dispute was settled thereafter. The growth trajectory
was hitting an all-time high. The company touched 10 million subscribers milestone in 2007.
The company turned most of its competitors into its partners. Right from Nokia to Yahoo had
some or the other relationship with RIM which further boosted the sales of the firm.
Interestingly 2007 also market the entry of Apple Inc. into the mobile phone industry with the
launch of iPhone.
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Jim quoted, “It’s kind of one more entrant into an already very busy space with lots of choice
for consumers…. But in terms of a sort of a sea-change for BlackBerry, I would think that’s
overstating it.” Almost every journalist in the world predicted Apple’s fall which
unknowingly targeted Blackberry users. The only common feature in an iPhone and a
Blackberry was the ability to make calls and send messages. iPhone was totally different
from the traditional Blackberry(s) but what made iPhone a direct competitor of Blackberry
was the price point. iPhone was launched as a premium phone. RIM’s products also had
premium price tags. Hence, the market and the ground were same but the offerings were
different.
Within a year of iPhone’s existence, iPhone had 10.7% smartphone market share and
Blackberry hit 19.5% market share. Both the players were stealing business from Nokia but
were on the verge of becoming head on competitors. That one single year saw RIM switching
its strategies. The company which for so long boosted about its QWERTY keyboard,
launched very first complete touch-screen phone, the Blackberry Storm. This move not only
portrayed how threatened RIM was with iPhone but at the same time it gave a clear indication
across the world that iPhone is soon going to take the world by ‘storm’.
On the side-lines of all the limelight that both Blackberry and iPhone had been getting, there
was a whispering technological development taking place. Google, the king of search engines
was fast developing a mobile operating system it acquired back in 2005. Google released the
first version of Android in 2008 but it was not commercially available till 2009 (Exhibit 8).
2009 was also the best year for RIM till date. It was the pinnacle of Blackberry. RIM had dug
hard in smartphone market and it had 20.7% market share in the smartphone market
worldwide. iPhone also stood tall at 17.1% and the newly launched Android had mere 3.5%
share but considering that it was the first year of its commercial existence, the share was
something to worry about for the two fruity mobile manufactures (Exhibit 9).
The Berry falls:
Blackberry Storm was officially declared as a failed effort to compete well with the iPhone
and to worsen the situation more, Google launched Android Cupcake which later on became
a commercial hit. Struggling mobile phone manufactures such as Samsung, HTC and LG hit
gold when they decided to forgo with Symbian and switched to Android.
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Nokia was already hurt badly by the rise of all three smartphone players but it still had a ray
of hope through its strategy of having mobile phone at every price point. Smartphones were
limited to a certain audience whereas the commoners still relied upon the mighty Nokia.
Blackberry had no such option. It did bring down price of its mobile phones, changed its
marketing strategies and attracted young customers as well and launched some cheaper
version as well but the simplicity of a Nokia could not be matched. 2010 marked the
beginning of Blackberry’s fall from the cliff. Apple iPhone zoomed to 16.7% worldwide
smartphone market share, Android surged to 25.5% and Blackberry fell to 14.8%.
2010 also marked the launch of Apple’s iPad. Apple had generated enough success and
revenue through the sale of iPhone and gave rise to an all-new product segment. RIM
responded too quickly to the same. It announced the development of a table codenamed
Playbook. RIM was imitating Apple at every level. Google also did not stay behind. It
launched the much awaited Android Honeycomb in 2011 to enter the tablet bandwagon.
RIM’s Blackberry Playbook was commercially available in 2011 and the initial reviews
declared the Playbook as a failed attempt. To further add to the worries of RIM, Blackberry
faced a major outage across continents. By the end of 2011, RIM had realised that it had the
worst year and started going back to drawing boards and board meeting at RIM’s
headquarters became more frequent. RIM’s stock price hit the all-time low level.
Blackberry’s share dropped to meagre 8.8% and Android was the undisputed king of
smartphone market.
2012 was a silent year for RIM across the globe except at its headquarters. The duo who
founded the company paved way for the new Chief Executive Thorsten Heins. The company
reported its first net loss in eight years. The employees were trimmed across the globe and
RIM had no answer to rise of phones with super speed processors, high definition screens,
cameras better than a standard digital camera and more importantly the looks and feel to die
for. While other operating systems were having thousands of applications to offer to their
customers, Blackberry could only offer few hundreds of them and relied majorly on its
Blackberry Messaging service which was the only saving grace of RIM and probably the only
incentive for which people had been sticking to not so good looking Blackberry(s).
Blackberry which was also the favourite phone at organizations with most strict corporate
firewalls started getting substituted by iPhone.
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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Organizations had no option but to change their policies accordingly since the CEOs, VPs
etc. no more wanted to stick around with a Blackberry when they had more good looking,
trendy and feature rich handsets to carry with them. At the end of 2012, Blackberry nothing
to offer other than teaser advertisements for its upcoming handsets and operating systems
which had been delayed for so long. The year ended with dark clouds for RIM and the share
of Blackberry dropped to 1.1% in major markets (Exhibit 10). To summarise, it was the end
of RIM’s almost two decades of product life cycle. Other major growing companies around
the globe such as Lenovo and Google had started making strategies in their board rooms to
acquire the ailing Blackberry business of RIM. RIM was struggling with cash and criticism
from everywhere hovered over the RIM.
The Much Awaited Comeback:
By late 2012, the rumours of RIM working on something revolutionary, pictures of so called
upcoming Blackberry(s) from RIM, the new operating system, new management etc. leaked
all over the internet. There was still that little ray of hope among the investors that Blackberry
would bounce back. Finally the date was announced. RIM invited journalists from around the
globe for a special date on 30 January 2013 for a gala event in Waterloo. Everyone knew that
RIM would announce launch of both new hardware as well as software. RIM did not
disappoint either. It not only launched a brand new operating system along with couple of
new handsets which promise to launch many more in coming quarters but it renamed itself to
Blackberry. Now, the brand of the company owned the company. New operating system has
been designed very much in line with industry expectations along with good number of
innovative features. Handsets on the other hand have catered to good looking criteria and also
boost of good hardware specifications but the pricing seems to be an issue. The most recently
launched Blackberry Z10 is priced around USD 750 hence it is directly competing with the
likes of Samsung and Apple. This is a “do or die” situation for the company. If it does not hit
a goldmine this time, there would be nothing to save the ailing firm.
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Summary:
What RIM (now Blackberry) Did Wrong?
Dug its Own Grave:
Post launch of Apple iPhone, within that particular year, without thinking even twice RIM
launched Blackberry Storm. Blackberry had no prior experience in the touch screen business
and it failed to distinguish between its own USP and Apple’s USP.
Just like Blackberry Storm was launched in a haphazard manner to counter iPhone,
Blackberry Playbook was launched to compete against Apple’s iPad. It was certainly a very
poor launch even after knowing that Apple had become a mammoth company and its
dominance would not be hindered. To further worsen the things, Playbook was not even
independent enough. It had to use a Blackberry handset through software known as
Blackberry Bridge that would allow the user to use the Playbook as a true Blackberry device
(instant messaging and emailing).
Leadership Failure:
The founding duo paved way for the new CEO quite late. It happened when the company had
already lost majority of its customers. The step should have taken earlier or the board of
directors of the company must have introduced a refreshed executive team when they
witnessed the stock hitting new lows every day.
Failure of Application Store:
Both Apple and Google and to certain extent Windows as well have developed an excellent
ecosystem of applications for their devices. RIM always failed to tap that market perfectly.
Developers were not motivated to develop more and more applications for Blackberry
handsets. The compatibility of Blackberry handsets did not match the standards of other
competitive operating systems. Even the acquisition of QNX could not help RIM much or
probably Blackberry maker did not make much out of the deal.
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Lack of Innovation:
RIM did launch lot of Blackberry(s) but as soon as the company saw its end coming, it almost
stopped manufacturing the phones it used to be known for. Blackberry had been favourite of
corporate even after the launch of Android and iPhone for a good time. Young generation did
shift to iPhone and other devices but the corporate honchos were loyal to their Blackberry(s)
for a long time but RIM did not announce anything. The last Blackberry Bold (the top end
revolutionary version) was launched way back in 2011. Thereafter, RIM had only launched
cheaper versions of the handset. By going with this strategy RIM neither gained ground in the
market it was launching phones nor it could incentivise the loyalty of its high class
customers.
Wrong Executive Decisions:
Soon after RIM realised that it is losing ground, it went ahead with the strategy of cost
cutting. The new CEO of the company immediately hired investment bankers and started
laying off employees worldwide. The executive committee probably failed to realise the fact
that reducing costs was not the right way to increase revenues instead it meant poor business,
poor innovations, poor services and delay in execution of future plans. The same happened
with RIM. Neither it could launch new phones and the company suffered historic outage of
Blackberry services across the globe which affected millions of Blackberry subscribers for
many days. The failed decisions also brought the company into red much before it was
expected.
The Questionable Future:
The Last Bet:
Launch of Blackberry OS 10 devices is probably the last bet of Blackberry as Blackberry has
been left with no more chips to play with. 2013 could be the last year of Blackberry if OS 10
fails to make its presence felt in the industry. Z10 has been launched as a premium offering
and its success could be extremely elemental for Blackberry.
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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The Confirmed Strategy:
In an interview with one of India’s English daily- Times of India, Blackberry India’s
Managing Director Sunil Dutt said, “Let me put it this way: We are not going after the market
share. There are several segments of the market, which our competitors deem important, that
we don't address. For example, we are not present in the below USD 200 segment. As a
brand, sometimes you need to evaluate what is it that you are chasing and what is it that your
customers are looking up to you for? We can go and chase volumes but volumes might not be
driving profit pool. At the same time, our consumers associate BlackBerry with aspirations.
Our phones are 'aspirational' products. If you reduce prices too much, you may gain volumes
but may lose the value your products have. We are not going to be meant for everyone. So,
you have this addressable market where we are going to focus. This is the part of the market
where our brand is strong and where margins are.”
It is very much evident from what Sunil said that Blackberry is going to cater to its niche
market which probably is the right decision. Still one can see some top executives carrying
Blackberry(s) which means that most of them have been eagerly waiting for the new
launches. If Blackberry manages to keep hold of them and attract back the high end
customers it lost to its rivals, Blackberry could well become a top leader by revenues at least
in times to come.
Strategic Tie-Ups:
Blackberry appreciates its very own proprietary Blackberry services. Blackberry can very
well leverage upon its technology and gain much out from it. It can tie-up with luxury phone
makers such as Tag Heuer, Porsche etc. to render Blackberry services for high end phones.
Blackberry might charge royalty for the same. If people can afford iPhone, then more than
half of them would love to go ahead with high priced handsets which are feature rich, look
trendy, match their millionaire status and above all can let them stay connected to the world
which is the basic USP of Blackberry services.
Rise as a Wholesome Information Technology Company?
There are very few number of companies in the world which are champions in both hardware
and software markets. In current times Apple is one such company. Company’s single
product and single software compete with hundreds of substitutes.
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Such companies are isolated from supply side pressures and have more hold of their books of
accounts unlike other major companies such as Microsoft or Google (has the software but
relies on other companies for hardware supporting its software) and Samsung (has hardware
but is nothing without Google’s Android). Blackberry once was such a company. Its software
was something every other handset manufacturer wanted to partner with and later Blackberry
came out with its own handsets and became an undisputed leader in both hardware and
software. Blackberry has got one more opportunity to go reach the top on the same lines. It
has done the right thing by reinventing both hardware and software but what matters the most
is how it maintains it superiority by continuously refining its products in order to stay ahead
of the competition.
Cooperation with Governments:
Blackberry has always been on scanner of several governments across the globe. Since
Blackberry’s servers are not present in every other nation, in the long term it can force the
Blackberry to incur high expenses on account of either lobbying or paying millions in
lawsuits. Hence, Blackberry must ensure that every ruling government has due access to the
encrypted data of their respective nations. This would keep Blackberry in the right light and
will certainly keep the company away from unwanted speculations and litigations.
Will the Company Rise Again?
The company has seen both ups and downs. Blackberry has been classic example how
dreams turn into reality and then reality becomes a dream. The company has gone through -
every phase of product life cycle. Now it has reinvented itself. The battleground is the same
but the company is known coupled with more energy and strategies. The fight will not be
easy but it will be interesting to see if Blackberry manages to fights all alone or after some
time opts for tag team. The company has enough patents to stay alive for quite some time and
it will give in everything before it backs out (Exhibit 11). Company must upgrade its tablet to
turn it into a complete Blackberry product supporting every feature which a Blackberry
handset does if the company wants to survive in the tablet industry or it is the right time to
exit the market. The investors have nowhere to go. If they dump their stocks, they will not
gain much hence they will continue their interest in the Blackberry and will give the mobile
phone maker another chance to rise and shine. The early reviews of the new operating system
are anywhere from good to excellent. Blackberry must capitalize upon the same and can well
become a business phone if not smartphone leader in few months only.
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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Exhibit 1:
Product Life Cycle
Source: igcsebusinessrevision.blogspot.com
Exhibit 2:
RIM DigiSync Film KeyKode Reader
Source: www.berryreview.com
Exhibit 3:
Blackberry 850
Source: www.crackberry.com
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images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
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Exhibit 4:
Blackberry 5810
Source: www.cellphones.about.com
Exhibit 5:
Blackberry 6210 Blackberry 7230
Source: www.time.com
Exhibit 6:
How Blackberry Works
Source: www. manojhunk.blogspot.com
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Exhibit 7:
Blackberry’s market share in 2006
Source: www.pingmobile.com
Exhibit 8:
Timeline of Android
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Exhibit 9:
Blackberry’s growth till Quarter 3 2009
Exhibit 10:
Changing market share of RIM (Note the similarity with Product Life Cycle)
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
Exhibit 11:
The Way Forward for Blackberry
Hardware Software
Blackberry
Smartphone
Blackberry Servers Blackberry
Operating System
Industrial Purposes
To Third Party handset
manufactures
Stiff Competition
Continuous
Innovations
Limited Costs
Limited Customers
Profits
Higher Costs
More Customers
Concentration on
Application Ecosystem
Concentration on
Superpower
multipurpose highly
secured servers
Hardware + SoftwareThe IBM Route The Google Route
User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks,
images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes
only.
References:
1.
http://ca.blackberry.com/company.html
2.
http://www.blackberry.com/select/get_the_facts/pdfs/rim/rim_history.pdf
3.
http://investorplace.com/2013/01/a-brief-history-of-research-in-motion/
4.
http://wiki.answers.com/Q/How_blackberry_works
5.
http://faqoid.com/advisor/android-versions.php#version-1.0
6.
http://m.timesofindia.com/articleshow/18189896.cms
7.
http://forums.crackberry.com/general-discussion-f2/timeline-history-research-motion-
7162/

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BlackBerry - Case Study

  • 1. Re-designed. Re-engineered. Re-invented. A Case Study Chaahat Khattar
  • 2. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Case Abstract: The case aims at highlighting one of the classic examples of product life cycle. Even after decades of technological advancement and evolution of information technology, the concept of product life cycle holds true for every other industry (Exhibit 1). Blackberry has been through every stage of product life cycle and is now in a quest to start the cycle afresh. The case will help us understand what all factors are involved in building a world class organization, sustaining it in one of the most competitive industries and gaining the most loyal customers on the planet. At the outset of the case one must understand that the life cycle which Blackberry has been going through, almost every other organization has to go through. The longevity of the product life cycle depends upon the composition, saturation and other economic factors of the respective industry. The other very important factor which this case study aims to highlight is the choice. The choice hereby is referred to measures or the steps which any firm is bound to take at every single level of the product life cycle. The most important and crucial decisions are usually taken at the first stage as well as at the last and the most decisive stage of the life cycle. Every other activity during the life cycle revolves around the choices that are adopted in these two phases. The case well portrays the contrasting situations of companies that are also going through the similar life cycle as Blackberry but how the decisions taken by other companies vary from decisions taken by Blackberry’s bosses and what outshines them from their struggling competitors.
  • 3. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Once the World’s largest smartphone maker and a pioneer in mobile e-mailing has put all the chips it had on the poker table of the casino of world mobile technology. The company has made its loyal customers wait for more than two years to witness the launch of a revolutionary operating system and new range of mobile phones. Blackberry (formerly known as Research in Motion) has seen itself go from top to bottom in the smartphone market and instead of coming out with latest technology and bouncing back in the competition, it decided to refine its products and present the best of the best in front of the world after a long break. Blackberry faces not only a stiff competition but it also faces a threat of losing its patented technologies and solutions to its mighty rivals which have been constantly bringing new and updated substitutes for aging Blackberrys. There was a time when every person at the corporate level relied on a Blackberry and firms with most stringent data protection policies forced Blackberrys’ upon their employees because of Blackberry’s most sophisticated data encryption and protection systems. But it is universal rule for any firm to either keep up with time or to see itself drowning. Blackberry got stuck to its operating systems which it has been offering since years and believed that its loyal customers will not move on easily. But as soon as better alternatives arrived in the market, people had to go with better technology and then the firms were forced to modify their data protection policies accordingly to keep pace with the time. The case study takes dive into Blackberry’s past, reinvented present and puts a spotlight on Blackberry’s expected future from both Blackberry’s vision as well as the public’s acceptance.
  • 4. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Research in Motion- The Rising Sun Based out of Waterloo, Ontario, Canada, Research in Motion (“RIM”) was the parent company of Blackberry. Like several other technological companies, RIM was brain child of a college dropout and a technology enthusiast. Mike Lazaridis and Douglas Fregin founded RIM back in 1984. Manufacturing of mobile phones was nowhere the focus of the founders. They were just fascinated by wireless technology and wanted to explore this technological marvel further. They were so robust about their fascination that they turned RIM into first wireless data technology developer in North America and the first company outside Scandinavia to develop connectivity products for Mobitex wireless packet-switched data communications networks in 1988. Mobitex was the technology which was used in paging devices for data transmission. The company was elemental in converting Mobitex from a simple wireless data network into a two-way wireless paging device. RIM’s progress was backed by its successful efforts to raise funds through venture capital funding. It received Canadian Dollars Five Million in late 1980s which helped the company in fulfilling contracts it has been receiving from several companies. RIM’s first client was General Motors of Canada Limited for industrial automation technology. The company continued to work on contract by contract basis for several years. The company was having sales more than a million dollars by the start of 1990 and it soon started leveraging upon its technologies and had initiated the process of getting into hardware industry. In 1990, the company introduced DigiSync Film KeyKode Reader (Exhibit 2) which has used to encode the codes found on KeyKode strips manufactured by Kodak for videography. But the company continued to emphasise upon its expertise in wireless technology especially after it received a contract in 1987 from Rogers Cantel Mobile Communications, Inc., a paging and cellular telephone operator that was a subsidiary of Rogers Communications Inc. The contract required RIM to investigate the potential of newer wireless digital network systems which were developed by other successful and large scale technology developer firms. By 1991, the company had started developing software to support a complete wireless e-mail system. The company entered into several partnerships with various larger technology companies such as Hewlett Packard to develop advanced wireless e-mail technologies for their products.
  • 5. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. The company continued to explore more and more business opportunities in Mobitex eco- system and it was in 1992 when both Mike and Fregin realised that they had splendid ideas but they needed someone to help the team in establishing its own brand and bringing more synergies between its hardware and software and in reducing their dependence over other firms. RIM welcomed Jim Balsillie, a Harvard alumnus, to help the company in commercialising its products and turning RIM into a successful sustainable technological company. Usually such big name hiring involves heavy joining bonuses but in RIM’s case Jim invested quarter of a million US dollars from his very own pocket into RIM. The era of undisputed innovations in the field of wireless mobility began post 1993. Blackberry continued to play around on contract basis and introduced several kinds of wireless modems, paging technology, gateway systems but still no single computer hardware behemoth managed to utilise RIM’s technology to build a wholesome product. The company got listed on Toronto Stock Exchange in 1997 and it successfully managed to raise more than USD 115 million from investors for its ambitious future plans. It was in 1998 when RIM started filing for patents for what later on became one of the benchmark devices in the history of technology. In 1999, after years of innovation, testing and hard work RIM launched its very first device under the brand name of Blackberry. The name Blackberry was not an idea of the founders of RIM but it was a creative outcome of Lexicon Branding, California’s President’s David Placek brain who right from the beginning wanted to keep the name of the product fruity and ended up choosing the name Blackberry and RIM decided to take the same forward for indefinite period of time. The first RIM product which was Blackberry 850 was a simple paging device with no voice support (Exhibit 3). In its very first year, Blackberry garnered only 25,000 subscribers. Various analysts predicted it to be a failed attempt by RIM but RIM had a pool of both investments as well as ideas and they made sure that they would explore markets other than Canada and got themselves listed at NASDAQ in 1999 and raised USD 250 million through the same. Rise of the Crackberry: RIM reinvented the QWERTY keyboard with its Blackberry 850 and aimed to move on to the next level of technology. RIM aspired to take on the undisputed king of mobile phones- Nokia Worldwide.
  • 6. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Everything was going right on track till 13 November 2001 when a group of inventors filed a million dollar lawsuit against RIM accusing the company of building its wireless e-mail network by infringing on patents held by an American patent-company, NTP Inc. of Virginia. RIM took the case very seriously but at the same time it did not let the same come in between its highly ambitious plans. In the very beginning of 2002, RIM launched its very first full- fledged mobile phone Blackberry 5810 which supported both voice and data (Exhibit 4). It was not the perfect start for RIM as the stock of RIM dole-drummed to as low as USD 1.57 per share. Blackberry 5810 lacked very basic functions of a mobile phone. Such as, it did not have any built in microphone or a speaker. One had to always plug in proprietary headphones to use the handset for more than a mobile phone look-a-like pager. To further add to the worries of RIM, a jury addressing the NTP lawsuit ordered RIM to pay USD 23.1 million to NTP. 2003 was a dream run for RIM. It launched back to back premium Blackberry(s). With Blackberry 6210, the company finally delivered a pager inside the phone and not vice versa and with the launch of Blackberry 7230 (Exhibit 5) the company provided a wholesome product which supported colour screen and more importantly international roaming capabilities. RIM also strengthened its corporate reach by introducing the BlackBerry Connect licensing program, which enabled mobile device manufacturers to equip their handsets with the integrated ability to connect to BlackBerry Enterprise Server. The way a Blackberry works: Blackberry service has always been the heart of both Blackberry devices and RIM. The way a Blackberry functions is till date one of the most coveted mobile phone feature and in years to come it will continue to remain as the Unique Selling Point (“USP”) of RIM’s Blackberry. The email redirection is run by the Blackberry Enterprise Service (BES) which communicates directly with the exchange server. Alternatively there is a Blackberry Desktop redirection that synchronizes directly with your personal computer. The process begins with identification of Exchange (Outlook in most of the cases). The Exchange account receives the message. The redirector looks in the email account, finds the message, and forwards it to the BlackBerry service provided by RIM. RIM's BlackBerry service sends the message to the wireless data network (such as EDGE or GPRS). The wireless data network provider sends the message in a wireless signal to the BlackBerry device. (You must be in a data coverage area to receive mail.)
  • 7. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. The BlackBerry receives the signal and displays the message. Starting 2003, RIM offered its Blackberry service to other operating system companies such as Symbian in order to cater much wider markets across the globe (Exhibit 6). In 2004, RIM not only celebrated its 20th Anniversary but the year marked beginning of Blackberry’s epic rise with number of subscribers doubling in years to come. Blackberry reached 2 million subscribers worldwide in 2004 and 4 million subscribers worldwide in 2005. At the same time company continued to expand itself globally by partnering with telecom operators worldwide. The ball game was changing thereafter. Initially RIM had tough time to partner with telecom operators globally but by the end of 2005, operators worldwide were knocking on RIM’s door to carry its Blackberry service in their respective service circles. Blackberry by 2006 had become an iconic service and it became a must have for every corporate around the globe. Nokia kept on upgrading its bestseller Communicator in due course but the size of that mighty phone did compete well with all-in-one and yet trendy Blackberry(s). Blackberry by the end of 2006 had dethroned all its direct competitors such as Palm, HP, Dell, Mio etc. to become the favourite smartphone/service or probably the gadget of not only the emailholic people but also the celebrities across the globe. By the end of 2006 Blackberry had 5 million subscribers worldwide in its kitty (Exhibit 7). The company hit another record breaking level. This time the investors got glued up to RIM and RIM’s share touched USD 124.51 per share making the company worth over USD 67.35 Billion and it became Canada’s most valuable company. The Matured Berry: Reaching silver jubilee of its existence, RIM had become a known and mature brand across the globe. The company was having stable inflow and outflow of cash. The company had paid USD 612.5 Billion to NTP and the dispute was settled thereafter. The growth trajectory was hitting an all-time high. The company touched 10 million subscribers milestone in 2007. The company turned most of its competitors into its partners. Right from Nokia to Yahoo had some or the other relationship with RIM which further boosted the sales of the firm. Interestingly 2007 also market the entry of Apple Inc. into the mobile phone industry with the launch of iPhone.
  • 8. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Jim quoted, “It’s kind of one more entrant into an already very busy space with lots of choice for consumers…. But in terms of a sort of a sea-change for BlackBerry, I would think that’s overstating it.” Almost every journalist in the world predicted Apple’s fall which unknowingly targeted Blackberry users. The only common feature in an iPhone and a Blackberry was the ability to make calls and send messages. iPhone was totally different from the traditional Blackberry(s) but what made iPhone a direct competitor of Blackberry was the price point. iPhone was launched as a premium phone. RIM’s products also had premium price tags. Hence, the market and the ground were same but the offerings were different. Within a year of iPhone’s existence, iPhone had 10.7% smartphone market share and Blackberry hit 19.5% market share. Both the players were stealing business from Nokia but were on the verge of becoming head on competitors. That one single year saw RIM switching its strategies. The company which for so long boosted about its QWERTY keyboard, launched very first complete touch-screen phone, the Blackberry Storm. This move not only portrayed how threatened RIM was with iPhone but at the same time it gave a clear indication across the world that iPhone is soon going to take the world by ‘storm’. On the side-lines of all the limelight that both Blackberry and iPhone had been getting, there was a whispering technological development taking place. Google, the king of search engines was fast developing a mobile operating system it acquired back in 2005. Google released the first version of Android in 2008 but it was not commercially available till 2009 (Exhibit 8). 2009 was also the best year for RIM till date. It was the pinnacle of Blackberry. RIM had dug hard in smartphone market and it had 20.7% market share in the smartphone market worldwide. iPhone also stood tall at 17.1% and the newly launched Android had mere 3.5% share but considering that it was the first year of its commercial existence, the share was something to worry about for the two fruity mobile manufactures (Exhibit 9). The Berry falls: Blackberry Storm was officially declared as a failed effort to compete well with the iPhone and to worsen the situation more, Google launched Android Cupcake which later on became a commercial hit. Struggling mobile phone manufactures such as Samsung, HTC and LG hit gold when they decided to forgo with Symbian and switched to Android.
  • 9. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Nokia was already hurt badly by the rise of all three smartphone players but it still had a ray of hope through its strategy of having mobile phone at every price point. Smartphones were limited to a certain audience whereas the commoners still relied upon the mighty Nokia. Blackberry had no such option. It did bring down price of its mobile phones, changed its marketing strategies and attracted young customers as well and launched some cheaper version as well but the simplicity of a Nokia could not be matched. 2010 marked the beginning of Blackberry’s fall from the cliff. Apple iPhone zoomed to 16.7% worldwide smartphone market share, Android surged to 25.5% and Blackberry fell to 14.8%. 2010 also marked the launch of Apple’s iPad. Apple had generated enough success and revenue through the sale of iPhone and gave rise to an all-new product segment. RIM responded too quickly to the same. It announced the development of a table codenamed Playbook. RIM was imitating Apple at every level. Google also did not stay behind. It launched the much awaited Android Honeycomb in 2011 to enter the tablet bandwagon. RIM’s Blackberry Playbook was commercially available in 2011 and the initial reviews declared the Playbook as a failed attempt. To further add to the worries of RIM, Blackberry faced a major outage across continents. By the end of 2011, RIM had realised that it had the worst year and started going back to drawing boards and board meeting at RIM’s headquarters became more frequent. RIM’s stock price hit the all-time low level. Blackberry’s share dropped to meagre 8.8% and Android was the undisputed king of smartphone market. 2012 was a silent year for RIM across the globe except at its headquarters. The duo who founded the company paved way for the new Chief Executive Thorsten Heins. The company reported its first net loss in eight years. The employees were trimmed across the globe and RIM had no answer to rise of phones with super speed processors, high definition screens, cameras better than a standard digital camera and more importantly the looks and feel to die for. While other operating systems were having thousands of applications to offer to their customers, Blackberry could only offer few hundreds of them and relied majorly on its Blackberry Messaging service which was the only saving grace of RIM and probably the only incentive for which people had been sticking to not so good looking Blackberry(s). Blackberry which was also the favourite phone at organizations with most strict corporate firewalls started getting substituted by iPhone.
  • 10. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Organizations had no option but to change their policies accordingly since the CEOs, VPs etc. no more wanted to stick around with a Blackberry when they had more good looking, trendy and feature rich handsets to carry with them. At the end of 2012, Blackberry nothing to offer other than teaser advertisements for its upcoming handsets and operating systems which had been delayed for so long. The year ended with dark clouds for RIM and the share of Blackberry dropped to 1.1% in major markets (Exhibit 10). To summarise, it was the end of RIM’s almost two decades of product life cycle. Other major growing companies around the globe such as Lenovo and Google had started making strategies in their board rooms to acquire the ailing Blackberry business of RIM. RIM was struggling with cash and criticism from everywhere hovered over the RIM. The Much Awaited Comeback: By late 2012, the rumours of RIM working on something revolutionary, pictures of so called upcoming Blackberry(s) from RIM, the new operating system, new management etc. leaked all over the internet. There was still that little ray of hope among the investors that Blackberry would bounce back. Finally the date was announced. RIM invited journalists from around the globe for a special date on 30 January 2013 for a gala event in Waterloo. Everyone knew that RIM would announce launch of both new hardware as well as software. RIM did not disappoint either. It not only launched a brand new operating system along with couple of new handsets which promise to launch many more in coming quarters but it renamed itself to Blackberry. Now, the brand of the company owned the company. New operating system has been designed very much in line with industry expectations along with good number of innovative features. Handsets on the other hand have catered to good looking criteria and also boost of good hardware specifications but the pricing seems to be an issue. The most recently launched Blackberry Z10 is priced around USD 750 hence it is directly competing with the likes of Samsung and Apple. This is a “do or die” situation for the company. If it does not hit a goldmine this time, there would be nothing to save the ailing firm.
  • 11. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Summary: What RIM (now Blackberry) Did Wrong? Dug its Own Grave: Post launch of Apple iPhone, within that particular year, without thinking even twice RIM launched Blackberry Storm. Blackberry had no prior experience in the touch screen business and it failed to distinguish between its own USP and Apple’s USP. Just like Blackberry Storm was launched in a haphazard manner to counter iPhone, Blackberry Playbook was launched to compete against Apple’s iPad. It was certainly a very poor launch even after knowing that Apple had become a mammoth company and its dominance would not be hindered. To further worsen the things, Playbook was not even independent enough. It had to use a Blackberry handset through software known as Blackberry Bridge that would allow the user to use the Playbook as a true Blackberry device (instant messaging and emailing). Leadership Failure: The founding duo paved way for the new CEO quite late. It happened when the company had already lost majority of its customers. The step should have taken earlier or the board of directors of the company must have introduced a refreshed executive team when they witnessed the stock hitting new lows every day. Failure of Application Store: Both Apple and Google and to certain extent Windows as well have developed an excellent ecosystem of applications for their devices. RIM always failed to tap that market perfectly. Developers were not motivated to develop more and more applications for Blackberry handsets. The compatibility of Blackberry handsets did not match the standards of other competitive operating systems. Even the acquisition of QNX could not help RIM much or probably Blackberry maker did not make much out of the deal.
  • 12. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Lack of Innovation: RIM did launch lot of Blackberry(s) but as soon as the company saw its end coming, it almost stopped manufacturing the phones it used to be known for. Blackberry had been favourite of corporate even after the launch of Android and iPhone for a good time. Young generation did shift to iPhone and other devices but the corporate honchos were loyal to their Blackberry(s) for a long time but RIM did not announce anything. The last Blackberry Bold (the top end revolutionary version) was launched way back in 2011. Thereafter, RIM had only launched cheaper versions of the handset. By going with this strategy RIM neither gained ground in the market it was launching phones nor it could incentivise the loyalty of its high class customers. Wrong Executive Decisions: Soon after RIM realised that it is losing ground, it went ahead with the strategy of cost cutting. The new CEO of the company immediately hired investment bankers and started laying off employees worldwide. The executive committee probably failed to realise the fact that reducing costs was not the right way to increase revenues instead it meant poor business, poor innovations, poor services and delay in execution of future plans. The same happened with RIM. Neither it could launch new phones and the company suffered historic outage of Blackberry services across the globe which affected millions of Blackberry subscribers for many days. The failed decisions also brought the company into red much before it was expected. The Questionable Future: The Last Bet: Launch of Blackberry OS 10 devices is probably the last bet of Blackberry as Blackberry has been left with no more chips to play with. 2013 could be the last year of Blackberry if OS 10 fails to make its presence felt in the industry. Z10 has been launched as a premium offering and its success could be extremely elemental for Blackberry.
  • 13. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. The Confirmed Strategy: In an interview with one of India’s English daily- Times of India, Blackberry India’s Managing Director Sunil Dutt said, “Let me put it this way: We are not going after the market share. There are several segments of the market, which our competitors deem important, that we don't address. For example, we are not present in the below USD 200 segment. As a brand, sometimes you need to evaluate what is it that you are chasing and what is it that your customers are looking up to you for? We can go and chase volumes but volumes might not be driving profit pool. At the same time, our consumers associate BlackBerry with aspirations. Our phones are 'aspirational' products. If you reduce prices too much, you may gain volumes but may lose the value your products have. We are not going to be meant for everyone. So, you have this addressable market where we are going to focus. This is the part of the market where our brand is strong and where margins are.” It is very much evident from what Sunil said that Blackberry is going to cater to its niche market which probably is the right decision. Still one can see some top executives carrying Blackberry(s) which means that most of them have been eagerly waiting for the new launches. If Blackberry manages to keep hold of them and attract back the high end customers it lost to its rivals, Blackberry could well become a top leader by revenues at least in times to come. Strategic Tie-Ups: Blackberry appreciates its very own proprietary Blackberry services. Blackberry can very well leverage upon its technology and gain much out from it. It can tie-up with luxury phone makers such as Tag Heuer, Porsche etc. to render Blackberry services for high end phones. Blackberry might charge royalty for the same. If people can afford iPhone, then more than half of them would love to go ahead with high priced handsets which are feature rich, look trendy, match their millionaire status and above all can let them stay connected to the world which is the basic USP of Blackberry services. Rise as a Wholesome Information Technology Company? There are very few number of companies in the world which are champions in both hardware and software markets. In current times Apple is one such company. Company’s single product and single software compete with hundreds of substitutes.
  • 14. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Such companies are isolated from supply side pressures and have more hold of their books of accounts unlike other major companies such as Microsoft or Google (has the software but relies on other companies for hardware supporting its software) and Samsung (has hardware but is nothing without Google’s Android). Blackberry once was such a company. Its software was something every other handset manufacturer wanted to partner with and later Blackberry came out with its own handsets and became an undisputed leader in both hardware and software. Blackberry has got one more opportunity to go reach the top on the same lines. It has done the right thing by reinventing both hardware and software but what matters the most is how it maintains it superiority by continuously refining its products in order to stay ahead of the competition. Cooperation with Governments: Blackberry has always been on scanner of several governments across the globe. Since Blackberry’s servers are not present in every other nation, in the long term it can force the Blackberry to incur high expenses on account of either lobbying or paying millions in lawsuits. Hence, Blackberry must ensure that every ruling government has due access to the encrypted data of their respective nations. This would keep Blackberry in the right light and will certainly keep the company away from unwanted speculations and litigations. Will the Company Rise Again? The company has seen both ups and downs. Blackberry has been classic example how dreams turn into reality and then reality becomes a dream. The company has gone through - every phase of product life cycle. Now it has reinvented itself. The battleground is the same but the company is known coupled with more energy and strategies. The fight will not be easy but it will be interesting to see if Blackberry manages to fights all alone or after some time opts for tag team. The company has enough patents to stay alive for quite some time and it will give in everything before it backs out (Exhibit 11). Company must upgrade its tablet to turn it into a complete Blackberry product supporting every feature which a Blackberry handset does if the company wants to survive in the tablet industry or it is the right time to exit the market. The investors have nowhere to go. If they dump their stocks, they will not gain much hence they will continue their interest in the Blackberry and will give the mobile phone maker another chance to rise and shine. The early reviews of the new operating system are anywhere from good to excellent. Blackberry must capitalize upon the same and can well become a business phone if not smartphone leader in few months only.
  • 15. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Exhibit 1: Product Life Cycle Source: igcsebusinessrevision.blogspot.com Exhibit 2: RIM DigiSync Film KeyKode Reader Source: www.berryreview.com Exhibit 3: Blackberry 850 Source: www.crackberry.com
  • 16. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Exhibit 4: Blackberry 5810 Source: www.cellphones.about.com Exhibit 5: Blackberry 6210 Blackberry 7230 Source: www.time.com Exhibit 6: How Blackberry Works Source: www. manojhunk.blogspot.com
  • 17. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Exhibit 7: Blackberry’s market share in 2006 Source: www.pingmobile.com Exhibit 8: Timeline of Android
  • 18. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Exhibit 9: Blackberry’s growth till Quarter 3 2009 Exhibit 10: Changing market share of RIM (Note the similarity with Product Life Cycle)
  • 19. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. Exhibit 11: The Way Forward for Blackberry Hardware Software Blackberry Smartphone Blackberry Servers Blackberry Operating System Industrial Purposes To Third Party handset manufactures Stiff Competition Continuous Innovations Limited Costs Limited Customers Profits Higher Costs More Customers Concentration on Application Ecosystem Concentration on Superpower multipurpose highly secured servers Hardware + SoftwareThe IBM Route The Google Route
  • 20. User published content is licensed under a Creative Commons License. Copyright © 2013 Chaahat Khattar, All rights reserved. All the registered trademarks, images, logos or any other copyright material used in this case study are the property of their respective owners. The case study is meant for academic purposes only. References: 1. http://ca.blackberry.com/company.html 2. http://www.blackberry.com/select/get_the_facts/pdfs/rim/rim_history.pdf 3. http://investorplace.com/2013/01/a-brief-history-of-research-in-motion/ 4. http://wiki.answers.com/Q/How_blackberry_works 5. http://faqoid.com/advisor/android-versions.php#version-1.0 6. http://m.timesofindia.com/articleshow/18189896.cms 7. http://forums.crackberry.com/general-discussion-f2/timeline-history-research-motion- 7162/