Since the release of its first device in 1999, Blackberry (formerly Research in Motion) has boasted of success and fame. It reached a time when blackberry devices were nicknamed ‘crack-berry’ by its enthusiastic customers compared the devices to cocaine for their addictive nature. However by the end of the year 2010, an important turn of events has changed these blossoms to a world of uncertainties. Losses and a constant decrease in revenue generation has been the case ever since.
There has been a decrease in sales of Blackberry devices in the last three to four years. This factor, coupled with the fact that the mobile phone smartphone market has been progressively expanding worldwide shows that the company needs to address this intriguing
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Among the biggest failings that the company has experienced during this bumpy road is the attempt to venture to the tablet market through its Playbook. The high pricing of the device led to poor its poor reception by customers. All these factors played a role in the drop of sales and subsequent decrease in revenue generation in the company. Below are some of the effects that this problem has caused.
Losses
The Company has been experiencing both financial and non-financial losses for example the decrease of the number of Blackberry online subscribers. In the 3rd quarter of fiscal 2014, the company recorded a loss of about $4.4 billion.
Because of the decrease in sales, the company has in a number of occasions been forced to cut-off prices of the devices. In 2013 for example, prices of its highest-priced handset in India (Blackberry Q10) were lowered by 11% of the original pricing. Other mobile handset prices that were cut off include the Blackberry Z10 whose price reduction was around 40% less than the launch price (Press Trust of India, 2013).
The table and scatter gram below show revenue generation trends of the Blackberry Company since fiscal 2012. The amounts are in billions of
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The top managers have authority over the future of the company. They determine the future of the company by setting the strategic plans. Innovation acts as a carrier of the strategic plans from the present status of the firm to the projected destination. Without innovation, the company will remain in the status quo. Innovation will exploit the opportunities that are available effectively and efficiently. For instance, innovators would develop mobile applications that are relevant and meet the customer needs and the continuous dynamic market trends. In addition, the innovators would generate ideas to making the products unique and conforming to the company’s identity and philosophy. Blackberry Company should ensure that young and top notch creative innovators are hired and thus a blend of the young generation and the old balances the staff volume. Another way to keep up with competition is by encouraging the development of new business ideas. The company may have an incubation centre where raw business ideas are natured to reality. This would ensure competitiveness is guaranteed even for the
This decrease significantly impacted the gross profit of the operation. Resulting in a staggering 64% decline in gross profit
Competition is seen daily amongst Pepsi and Coca-Cola. In most cases individuals even compare the two just because they are major competitors that are always creating and innovating new ideas. The key to competition always making sure there is a plan to become successful. Businesses have to always have to stay ahead of the game. The businesses must always be put into place and remain one step ahead of the competitor. One business may target only the elderly generation. While on the other hand another business is targeting the generation to come or the present generation. Children may not like what the older generation
The main contributing factor to the decline in the return on stockholders’ equity (25.37% to 8.73%) was the decline in the profit margin (11.79% vs. 5.08%). The decrease in asset turnover (1.11 to 1.00) made a small contribution to the decline, as did the decline in the debt ratio (48.4% to 41.8%).
Being engulfed in a competitive market could be an overwhelming and challenging experienced for any company. The compatibility of Blackberry did not match the standards of other competitive operating systems. Even the acquisition of QNX could not help Blackberry tap in the lucrative market to stay afloat.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Sales fell in 1994 fell to $34.6 billion from $37.7 billion in 1993; a loss
...ustomer base that Blackberry has a good and long relationship with. Therefore, such solutions will gain competitive advantage from its link with Blackberry since there is a clear “economies of scope” or “synergies” among the multiple business activities.
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
While most consumers expect to pay a reasonable to high-end price for a fully equipped iPod and PDA device, most consumers are used to getting their phones for free. In fact "Free is the price many consumers expect in the United States. Carrier offers say it all. Out of Cingular's 82 offered phones, 10 are free, and another 22 sell for less than $40. During the holidays, some phone and consumer electronics stores offered Motorola Razrs two for the price of one. There is expectation that phones will be free with service, or at least cheap. The iPhone will sell for $499 or $599, depending on model, according to Jobs.
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The operating system is very distinct, but is straightforward with its functionality. People who purchase the iPhone believe that they have received their money’s worth and more when owning and iPhone. The iPhone is better than Android when compared because of the beautiful design and attractive display, the operating system and its functionality, and the device’s personal worth is definitely worth the money spent to own one.
The competence for KitKat was 95, the Boss was82, Queen was 80 and 97for the Q One. We choose a good rate for the battery life to satisfy our customers KitKat was 63, Boss was 99, Queen was 90 and Q One was 90. It’s showing KitKat is lower capacity than other products and the best was Boss, Queen and Q One .these products was marketed in Europe and Asia . The price of product in Europe for the KitKat product 999.0, the price of product Boss was 1000.0, price of product Queen was 1050.0 and price of product Q One was 1015.0. In Asia the product price different than price of the product in Asia. The price of product KitKat was 1199.0, the price of product Boss was 899.0, the price of product Queen was 1000.0 and the price of product Q One was
Recent attempts to regain foothold in the smartphone market include the unsuccessful launches of the PlayBook tablet in 2011 and Z10 and Q10 phones in 2013. These attempts to dismantle the iPhone and Android market power have resulted in BlackBerry trying to mimic its competitors rather than producing cutting edge products that create value for its customers.
Operating System such IOS, Windows, Android and Blackberry has taken application to the next level. In the new millennium mobile communication toke a whole new evolution to applications and the content of the phone. Every smartphone created typically is targeted to each consumer whether it be young adults, adults, entrepreneurs, etc. Studies show that young adults are the highest to adopt to smartphones with around 80% owning a smartphone. Adults aging from 65 and older have also increasingly began choosing smartphones over regular cell phones. Companies such as Blackberry, Apple and Samsung targets their products to young adults, adults, and entrepreneurs. These companies do this by adding features on the smartphone that consumers may need and want.
The year is 2014, the markets are changing constantly, and they always have to meet the needs of new consumers as well as old consumers. Mobile telephones have been in the retail and wholesale business for quite some time, and are only evolving from here on out. There are things that these cell phones can bring us that are major benefits in our everyday lives. Cell phones bring us maps, radios, address books, and even flashlights now. Cell phones have taken shape from a huge portable device to a more convenient thin device that can fit in your pocket. With time in any consumer market, the consumer adapts to the technology that makes their life easier. The constant innovation of cell phones has led us to smart phones, and these smart phones are capable of putting certain businesses out of the market. Businesses that engineered PDAs in the past were met with challenges because smart phones are able to match their productivity. Land lines have become useless since everyone can afford a mobile device now. Listening to music has also switched from a traditional CD Player/MP3 Player to an everyday smart phone.
Apple smartphones like IPhone 6s, IPhone 6 plus S, IPhone 6 and IPhone 6 plus are the latest and the most popular smartphones. The price range for IPhones are $549 to $849 in the United States of America. There are big telecommunication companies like AT&T, Verizon, T-Mobile and Sprint offering very affordable contract price to customer and rapidly increases the users of Apple. It becomes very easy to buy Apple products in many countries. Samsung has more advantages than Apple in the European and Asian market. Because Samsung has wider price variant and most of the products are cheaper than Apples.