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What’s Wrong with Blackberry?

9 Sep

Big names, such as Jack Welch of General Electric who took stepped firmly entered the 21st century and Louis Gerstner that transforms “dinosaur” IBM business machine manufacturers to “mammalian” intelligent-based information technology solutions provider, is often used as inspiration to realize success led the company .

Unfortunately, both macro and micro environment, these days different from the period in which Jack Welch and Louis Gerstner are leading their companies. Since the 11 September 2001 terrorist attacks in the United States (U.S.), the geopolitical situation of the world to this day continues broke down. In the economic field, the developed countries are still struggling with the impact of the global financial crisis of 2007/2008.

As for China’s growth rate dropped dramatically from the previous two digits to around 7% only, as well as India, Brazil, and Russia. In fact, the four countries that in recent years known by the acronym BRIC was originally expected to replace the tractor world economy developed countries OECD group.

In the midst of rapid change such as today’s, the fulfillment of the demand that is always able to align short-term strategies and long-term is becoming increasingly difficult. For example, since first launched in 1999, the BlackBerry smartphone RIM products is able to achieve 14.8% market share by the end of 2010. With an average growth rate of 38% per year, BlackBerry has within a decade behind Nokia, Samsung, LG, and Apple.

Difficulty aligning short-term strategies and long-term public began to smell, on June 16, 2011. RIM announced a reduction in its profit target and delay the product launch of its new smartphone, set to go on sale early in the summer of 2012. After the announcement, RIM’s stock price fell 21% and the company posted a loss of U.S. $ 125 million in 2012.

RIM mobilized all its resources to deliver new products. Finally, on January 31, 2013, RIM managed to fulfill his promise launched Z10 BlackBerry smartphone.

But, to achieve this short-term strategy, RIM should pay the long-term strategy. The waiting time is too long while competitors continue to launch new products, make RIM lost three million subscribers and a market share shrank to 3.4%. In addition, the use of touch screen technology and the Android operating system on the Z10 type makes BlackBerry loses authenticity and change the position of the previous trend setter a trend follower.

The waiting time is too long to launch the BlackBerry Z10 could make the move to a competitor which is more in line with their aspirations. The potential for this is unreasonable due to the relatively young age of RIM (founded in 1984), so that the system and procedures of human capital management (HCM) is not as strong, such as Apple (founded in 1976) and Intel Corp. (founded in 1968).

Do you think that Blackberry can survive in the smart phone market? How is the long term strategy or even the short term strategy of the Company Executives? It’s very interesting for me to follow the news. How about your opinion?