BlackBerry Strategic Management

BlackBerry Strategic Management

BLACKBERRY STRATEGIC MANAGEMENT 1

Companies operate in competitive markets that require them to haveefficient management and production systems that result in desirableearnings. The environment in the industries is dynamic andorganizations try to keep pace the alterations by adopting newstrategies. Also, companies work under the guidance of missions andvision as well as a future strategic plan that outlines the directionthat the company will take in future. They help the management tostay on course to avoid deterrents along their way.

The management uses different tools to arrive at the best directionto be taken by the business. The PESTEL analyzes give an overview ofthe external environments outlining the risks and the opportunitiesthe business can benefit. Managers also employ the SWOT analysis toidentify the business strengths, weaknesses, the possible threats andthe opportunities that exist in the market. This paper will layinsight on Blackberry’s economic environment by looking at itsmission, visions and objectives. It will also detail the factorssurrounding its external environment and the opportunities andthreats they pose to the company.

BlackBerry is a leader in the mobile communication market. Thecompany entered the market in 1999 and brought a revolution byintroducing high-end mobile phones with unique applications from theothers in the industry (Chen, 2013). The company looks forward toinspiring millions of mobile phone users around the world by pushingtheir experience further with the introduction of new products withdynamic applications. The company operates in North America, Europe,Asia, Pacific and Latin America.

Like many companies, Blackberry has a vision and mission to guide itsoperations. Its mission is to provide solutions for the worldwidemobile communications market , including the software that allows theBlackBerry Smartphone to provide mobile access to email,applications, media, and the internet (BlackBuried, 2010)). Itsvision is to develop and introduce new products through efficient anduninterrupted operations in the company’s network and that of itspartners.

The company has been facing a myriad if challenges in the market dueto poor leadership and cutthroat competitors from other companieslike Apple. However, the company has put in position a new chiefexecutive officer who with the help of other top officials has comeup with various objectives to put the company back to track. Thecompany has adequate resources to forge its path in the market andregain its market share. The first strategic objectives toconstitute a team of leaders with the necessary skills required forthe dynamic market. The team will focus on core business drivers thatmake blackberry unique in the markets. The team will focus on theenterprise services, messaging, and QNX and devices business (Chen,2013). It will then develop an efficient business model for each unitto achieve desirable results.

Another major strategic objective of the company is to enlarge itsplatform of service delivery to extend it cherished securityapplications to smartphones and tablets using other operating systemslike IOS, Windows, and Android. The company is also putting in placecollaborative measures with it rival like Samsung to include some ofits software like SecuSuite and WorkLife into the rivals’ devices(Rocha, 2014). These strategic goals are in line with the company’svision of partnering with other key players in the mobile market. Itwill also spread the blackberry feeling to a large number of people,and this will help in building the company’s image.

The company’s mission and vision are important features since theygive it a distinct image in the market. A realistic mission should beshort so that employees and other stakeholders can memorize witheasy. Also, it should reflect the current business environment aswell as remaining unique for the company (BlackBuried, 2010).Blackberry’s mission reflects the current services offered by thecompany and those that make it stand out in the market. Its devicesare famed for their push email applications and secure internetconnections, and these features appear in the mission. It is alsosuccinct enough for memorization by the company workers and other keyplayers. Another important feature of a mission is that it shouldhighlight what the company does and the services it offers. Thecompany’s mission is compliant with this requirement since itbriefly describes the company as a mobile device manufacturer andalso the important services that come with the devices.

An effective vision should be a summary of the company`s purpose, itscore values, and the ideal institution is striving to become. Itshould include the values and the future aspirations. Blackberry’svision outlines its purpose of introducing new gadgets in the marketand also summarizes the values of partnership, efficiency and minimalinterruptions in the process f providing services to its client base.However, it does not have a clear indication of what the companywants to be in future. Apart from sticking to its unique values, onedoes not get information as to whether the company wants to expand ordiversify its products.

In assessing the appropriateness of the company’s objectives, theSMART can analyze their viability and whether they are effective forthe market. The first objective of instituting a team of professionsand giving them the required skills is imperative in the competitivemarket. It is specific in that it identifies those in the leadershipposition for the crucial role they play in setting the tone for otheremployees. The results of their skills are can be measurable bylooking at exhibited growth patterns from the current company’sfinancial mad market position. It is also realistic and achievablesince the company has a strong financial base to train its workers.Also, the company works with timelines defined by its financial year.Any changes facilitated by the team will come to light after thecompilation of the financial and market results.

The second objective involves the management focusing on the keydrivers of the blackberry market. It is specific since it does nottarget the entire system but on key features that make the companyunique. The efficiency of this move can be measurable by assessingthe level of customers’ satisfaction that may result due to thechanges. Training a team of professionals to initiate changesprecedes this objective. Therefore, they will make it achievable. Thefinancial position of the company makes the objective achievable, andit is realistic since the drivers targeted are belonging to thecompany under patents (Chen, 2013).

Finally, the company wants to widen its market by partnering with itsrivals by putting some of its software on their devices. The companyhas singled out Samsung as the first partner, and it has identifiedthe specific applications to include in the mobile devices. Theviability of this objective will be measurable by getting the marketresults. They will reflect the acceptance of the mobile devices andthe general feeling about incorporating BlackBerry’s application inSamsung devices (Rocha, 2014). The reality of the objective is thatSamsung has not turned down the offer and the applications targetedalready functional in BlackBerry devices. When the financial yearends, the company will assess whether the objective made anysignificant impact on its returns and changes in the market segment.

The company’s operations are under the influence of externalfactors most which it has no control. Applying a PESTEL analysis willhelp to assess the possible effects of these factors.

PESTELAnalysis

Segment

Macro-environment

Threat or Opportunity

Political

There is a continued prevalence of a friendly political environment in North America, and this provides a conducive environment for the market industry. There are prospects of the use of smartphones increasing the use of feature phones. The North America is a major market for BlackBerry.

Secondly, there is a political concern growing in China, UAE, Kuwait and Saudi Arabia over the increased use of BlackBerry devices. According to the government, the secure nature of the devices is making it difficult the institutions to monitor the calls made by the citizens (Sampson, 2011).

BlackBerry also controls a significant market inEurope. The German government has raised the red flag for manufacturers that use toxic materials and those engaged in excessive use of non-renewable energy. The RIM firm that produce BlackBerry fall squarely on this warning

The situation in North maraca is an opportunity for the company to continue making sales.

The German, China, Saudi Arabia and Kuwait situations are a threat to the companies market.

Economic

The economic condition of the country and most parts of the world is changing people’s buying behavior. The amount of money set aside for luxury goods had reduced due to unfavorable global economy

Also, the fluctuations in exchange rates are likely to affect price-sensitive markets like India and China. People might shy away from buying expensive good until when the prices stabilize (Sampson, 2011).

.

This is a threat to the company since it will reduce the number of devices sold across the world.

It is also a threat to tem ret din China and India due to their high sensitivity to fluctuation rates.

Social

The social environment also affects a product’s market significantly. The growing culture in the world of being connected to each other and the rest of the world is instigating many people especially the youths to procure smartphones. It eases communication and access to the internet (Sampson, 2011).

There is also a growing culture of people opting to go for the most secure devices that will uphold the confidentiality of their information.

On the other hand, the use of smartphones body anti-social groups is also on the increase. The image they present to the religious countries may have an impact on the market of the product in these countries. When a brand name like BlackBerry becomes common with such groups, some governments may limit their usage in their countries.

The increased usage of smart phones is an opportunity for the company and it can seize the holiday months of November and December to make high sales.

Secondly, people’s reference for secure devices is an opportunity as well as strength for the company since this is a unique feature for its devices.

Technological

The technological environment is changing drastically with new inventions. Every company is trying to come up with new applications to quench the market’s desire

Also, the new trend requires devices that are compatible with the exchanges for consumers to find value in their money.

The competition is a threat o the company since it has to keep the pace with other competitors.

It has strength in manufacturing mobile devices that are compatible with various applications like GSM, GPRS, among others.

Environmental

The company has been on the spotlight in Germany for using toxic material in its operations. Without the proper compliance mechanisms, it may face closure or unnecessary sanctions

This is a threat to its operations.

Legal

The company is facing various legal suits from Motorola, Visto, MSTG and PACid group for allegedly infringing their patent rights (Sampson, 2011).

The regulatory bodies in China and UAE are also considering banning the BlackBerry devices from their countries since they are a possible threat to their security.

These are threats to the company since the lawsuits consume a lot of resources before they get settled.

The company can also lose a significant market in China and UAE if its services become terminated.

The continued political stability and the market-friendly environmentin North America is rendering the region a focus of many mobilemanufacturers (Statista, 2012). The mobile market does not attractrestrictive sanctions, and it makes it a prime ground to intensifymarketing efforts.

There is a growing trend in America and across the globe of accessinginformation about every part of the world (Statista, 2012). Peopleare opting to use a mobile device, and it is a factor leading to theexpansion of many mobile companies including BlackBerry. People arein need of mobile devices that have fast and secure internetconnection.

In many parts of the world, the economy is taking a downturn withreduced purchasing powers of the consumers, especially for expensivegoods. Most of the company’s products have high prices attached tothem, and this can result in reduced sales. The situation heightensthe competition for the available market.

There is a high possibility of the company encountering stiffcompetitions from close rivals like Samsung and Google in the primeareas like North America (Statista, 2012). Other new entrants in themarket might use the opportunity to gain roots before expanding toother areas. New entrants can also use the basis of increased demandfor smartphones as their basis to enter the market. The strategicobjective of partnering with the rivals by allowing them to use someof their applications in their phones can assist BlackBerry inincreasing its sales in the region. Smartphones from closesubstitutes also have a high demand.

Summary of Porter’s Five Forces

Force

Analysis of the factors within each force

Strength of the force

Threat of new entrants

The favorable market in North America is likely to attract new entrants in the industry to take advantage of the friendly political environment. Also the increased use of smartphones cross the globe may trigger entrepreneurs to put up Smartphone industries in the various parts if the world.

Strong

Bargaining power of buyers

Although there is increased use of smartphones in the world, most economies are experiencing a down turn due to fluctuations and unfavorable terms of trade. Consumers bargaining power is, therefore, facing a reduction. However, when more people buy phones that in the last decade, BlackBerry enjoys the neutralization of the effects.

Weak

Bargaining power of suppliers

The company has a strong financial base to supply its products across the globe. Also, it enjoys the support off the G7 for its secure products.

Strong

Threat of substitutes

Consumers can choose from a variety of product from other companies like Microsoft, Google, Samsung, and Nokia among others. Since BlackBerry’s products are relatively expensive than other companies’ products, consumers may opt to go for cheaper products from other competitors.

Strong

Intensity of Rivalry

There is a high competition in the industry from companies like Apple, Samsung, Nokia, Microsoft and Google. These companies also manufacture high-end smartphones and occupy in the international markets.

Strong

However, focusing on the drivers that give the company distinctioncan help in retaining loyal customers. Although there is the threatfrom close substitutes, the company has a competitive advantage overthe security feature of their devices. The attribute, although itdraws different feeling in some countries, is in line with thesecurity of data required by the users MacCormack et al., 2012). Forexample, the G7 members are BlackBerry customers as well as theDepartment of Defense. It gives it a competitive edge over the restwho have no such applications.

References

BlackBuried. (2010).BlackBerry Mission Statement and Brief History. BlackBuried.Retrieved fromhttp://blackburiedtreasure.blogspot.co.ke/2010/08/blackberry-mission-statement-and-brief.html

Chen, J. (2013).Blackberry CEO outlines New strategy. The Globe and Mail.Retrieved fromhttp://www.theglobeandmail.com/report-on-business/blackberry-ceo-the-journey-has-just-begun/article16125601/

Rocha, E. (2014).BlackBerry to Broaden its Cross-Platform Strategy. Reuters.Retrieved fromhttp://www.reuters.com/article/2015/03/01/us-telecoms-mwc-blackberry-idUSKBN0LX1NY20150301

Sampson, N. (2011).Strategic Audit of Research in Motion. State University of NewYork. Retrieved fromhttp://digitalcommons.brockport.edu/cgi/viewcontent.cgi?article=1027&ampcontext=honors

Statista. (2012).Smartphone User Penetration as a percentage of Total Population inNorth America from 2011 to 2018. Statista. Retrieved fromhttp://www.statista.com/statistics/203713/smartphone-penetration-per-capita-in-north-america-since-2000/