Wednesday, 13 May 2015.
In 2009, Blackberry, known as Research in Motion, was a lying player in the smartphone industry (Palenchar, 2013). The company had a 20 percent share of the smartphone market and had almost a monopoly in the business services sector using its business solutions. At that time, the company valued over $83 billion. US (Blackberry Still in a Jam, 2013). However, three years later, in 2012, the company’s share in the smartphone market declined to 5%. She also existenced financial shocks. It was a big decline for the company, which showed dominance a few years ago
This report examinations for the low performance of the Blackberry and the subsequent financial problems that the company faces
Acting to Downes and Nunes (2014), the big destruction associated with the new type of inovation can signify an affect business stability over a short period of time. A large exercise of destructive impacts has a significant impact on technology companies, as it is the result of the introduction of the best and chaeap destructive technologies in the market (Downes and Nunes 2014). Due to the availability of the Internet, conditions may be aware of the major destroyers. If the care are popular, they can influence the growth of the new organization through the use of operational technologies
In 2007, the market was presented with a touch screen, which was presented on the market by Apple iPhone. But Blackberry leads continue to argue that “they had such a dominant position in the market, which was so lucky.” They do not want them to be seen as their monopoly position, the edges of the girls, which are radically different (Hessman, 2013). The Blackberry did not produce any invative products or solutions, but was stuck in order to do what they consider to be workers at the time, also losing a signal share share of the market
Unsatisfied product sales have led to financial problems faced by Blackberry. The company has released a Playbook tablet for the iPad, which was introduced by Apple (Blackberry Still in a Jam, 2013). Never, the sale of Playbook Blackberry has been very disapping, because it has not been able to sell well. The latest product of Smartphone is Z10, which also faces low sales, which was even much smaller than the expected company (Blackberry Still in a Jam, 2013)
The enterprise market is one of the major Blackberry drivers. Never, it is under serious pressure
Problems with Blackberry face serious cash flow problems. The company reported a loss of 965 miles units in the quarter. The company’s report hell 45 percent in 2013, and its position at the end of the third quarter hell from $3.2 billion to $2.6 billion in 2013. In addition, Blackberry had to write off $960 million in inventory (Blackberry Still in a Jam, 2013). This was infected by bad sales of Z10. The Blackberry money is a therefore associate with inventory that cannot be sold. As a result of the poor cash flow, the company introduced a rationalization programme, which created about 4,500 jobs, accounting for 40 per cent of the total workforce. As a result of the company’s disability to switch to its Z10 Smartphone shares, cash flows emerge as a result of the failure
The company’s profit forces were adopted by the launch of its flagship product. The Z10 smartphones were Launch after the eal delay (Hessman, 2013). The technical market is dynamic and constant in motion. The delay in starting the product significantly reducedd of Blackberry (Blackberry Still in a Jam, 2013). The operating system for Blackberry is also allocated to Apple iOS and Google Android. This ested in Blackberry being at a very disadvantageous position on the market
Blackberry has lost track of user preferences in smartphones. He used the keyboard on his phones for the first time. People who wanted to print from phones preferred to use the phone because it was much easier. However, “many smartphone users have switched to the sensor models” in the recent past (Austin, 2013), even though the touch screen have their deemerts when it comes to many types of types and imported user interface. Smartphones managed by Blackberry that supported the physical keyboard are no longer attrtive to customers. This restted in a signficant loss of the Blackberry market share on the touchscreen smartphones
For many reason, the low performance deprecated in Blackberry was low. The company has no invative skills and is unable to provide the desired solutions. Also, due to competition in the enterprise market, it also had had sad earnings. The bad sale of the Z10 Smartphone flight has a multiplier effect to lower the probabilility of the company, which hinkers the flow of cash. The connections between all these factors distributed to the low performance of Blackberry
Osten, I. .. (27 September 2013). The future of the Blackberry is in doubt, the amateur keyboards are their own.
Connors, V. (27 September 2013). Blackberry posted losses like phones without sale. Inventory inventory requires about $1 billion.
Downes, L & Nunes P. (2014).
Hessman, T. (2013). Long failure on top. Extracted from www.industryweek.com
Blackberry still in a jam. If you are not private, this will not solve the company’s problem.
Company profile: Research In Motion Limited (2013).
Palenar, J. (11 February 2013). Analysts: BlackBerry Facing Tough battle. Extracted from www.twice.com