For Blackberry, things from bad to worse

BlackBerry’s failure to keep up with Apple and Google was a consequence of errors in its strategy and vision. First, after growing to dominate the corporate market, BlackBerry failed to anticipate that consumers would drive the smartphone revolution. The company was blindsided by the emergence of the “app economy,” which drove massive adoption of iPhone and Android-based devices. Also BlackBerry failed to realize that smartphones would evolve beyond mere communication devices to become full-fledged mobile entertainment hubs.

As a result, after releasing its quarterly financial results (hoping to see some improvement), BlackBerry saw its shares fall by another 20% (close to 1 billion dollars). Blackberry has also reported that it will be implementing a workforce reduction of 4,500 positions, or approximately 40% of the company’s global workforce. As a result this will result in workforce of approximately 7,000 full-time global employees.

6 Comments »

  1. Brian Said,

    November 20, 2013 @ 3:38 am

    It’s interesting to see how quickly blackberry seems to have fallen. I wonder if they’re able to come out with the next must have feature if they could turn things around just as quickly as they have fallen apart

  2. gersonma Said,

    November 21, 2013 @ 4:23 pm

    I agree with Brian. Very interesting to see how quickly Blackberry has fallen. But, not surprising to me due to the advantages that Apple has over it (technology and aesthetically wise). I don’t see Blackberry turning their success around. But, maybe. Interesting about workforce too and how that will affect people/jobs.

  3. Nicky Tynan Said,

    November 21, 2013 @ 6:59 pm

    This is a good example of a network oligopoly and competition for the market with BlackBerry losing out to Apple.

  4. Emma Jenkins Said,

    November 26, 2013 @ 5:29 am

    BlackBerry profits were at an all-time high in the mid-2000s before the release of the iPhone and other Smartphones. However, BlackBerry has not been able to keep up with the Smartphone industry and profits are now at an all-time low. Is it possible for BlackBerry to turn things around? While Apple was only 6 weeks away from bankruptcy in 1998 (and also had to lay off many employees), the Smartphone industry is now dominated by the iPhone and other phones like the Android (a network oligopoly). BlackBerry attempted to compete with these phones last month when they introduced the BlackBerry Messenger (BBM) app for Smartphones. However, with features such as iMessage on the iPhone, most users felt there was no need for BBM. If BlackBerry wants to compete with the other Smartphone devices, they will have to create something new and innovative.

  5. leeja Said,

    December 2, 2013 @ 5:01 pm

    To me it is interesting to see how BlackBerry hopes to see BBM (BlackBerry Messenger) as a transition from a mere instant messaging system to a nascent social network. The datas show that opening up BBM to iPhone and Android users has grown BBM’s user base from 60 million to more than 80 million in just over a month. I am excited to see what BlackBerry are planning to do to make revenue out of BBM; diverse channels and new features will certainly bring revenue to BlackBerry and ultimately reshape BBM.

  6. Courtney Said,

    December 2, 2013 @ 7:41 pm

    A couple years ago I was attracted to Blackberry because of BBM. I had switched to a Blackberry from an iPhone before apps were a big thing. However, it was interesting to see how quickly Blackberry fell due to the increase demand for smartphones with apps. I am also very interested to see how Blackberry does with opening up their BBM to iPhone and Android users.

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