Case Study ..

Case study: Blackberry. . . Bankruptcy!!

Lots of questions crossed people’s minds respecting the loss of Blackberry Company, which was one of the best sellers in the world. In a very short time they have managed to entirely change the way that people communicate and Samsung wouldn’t have been successful like now without Blackberry. However, BlackBerry posts a $4.4 billion loss in 2014 and sales have sharply declined. So the main question, was it because of their marketing policy or a decrease in the quality of their own products?

The company is suffering from competition from iPhone . The company's shares  have continued to decline so the  survival of Blackberry now depends on providing its BB on the rest of the devices in the market with a profit sharing agreement, and the company's transformation from factory devices to company programs such as Whatsapp .

Blackberry was widely referred to as Crackberry in the United States and was one of the best phones in the world. It has wonderful phones z30, z10, q10 and amazing software. 45% of the region owned a Blackberry device and that’s because they preferred it to any other phone. The problem of this device was losing $5.9 billion. However, in the three months to 1 march 2013, it recorded a smaller loss than expected of 423 billion dollars, compared with a loss of 5.9 billion dollar in the previous quarter.(BBC,2014)

Blackberry z10 Smartphone failed to be successful and recorded a net loss which amounted to $8.37 per share in the latest quarter. The company reported a strong cash position at the end of the quarter with $3.2 billion and no debt. The founder emphasis Blackberry popular messenger applications that are now also available on Apple and android devices and trying to highlight blackberry embedded QNX software systems. ,(BBC,2014)

The maker of Blackberry revealed publicly that he lost 423 million in less than the half of its 2014 economic year. The company was going through a tight situation when the sales of smart phones decreased. Blackberry exposed a partnership with Taiwan- based Faxcon so it can benefit from it by focusing on software and services. Sadly the company announced that it was firing some of its workforce, as part of reestablishment. Because from the extremity circumstances it put itself up for sale but later it declared hopes of finding a buyer. Blackberry is on sounder financial footing today with procedure to return to growth and opportunity to transform to a profitable company. They tumbled the salary nearly 40% for the full year. Despite all these things that happened to a company it’s still known as a diligent company.( Reuters,2014)

  

BlackBerry was like a virtual world and independent because of the unique style and easy access. The company was able to enter the spot market as a result of its ability to send and receive e-mails. Not only that but also offering the email service to other companies’ devices such as a Palm Treo through (BlackBerry Connect).However, all the problems faced by Blackberry Company were due to poor marketing. The reasons for the failure of the company in recent years are the lack of innovation devices and lack of creativity in the design of the machine. According to the Managing Director Jones, the company has extended and installed versions of its services , taping and time tracking systems for the BlackBerry.  Recently, the company is working on developing innovative ideas concerning the management system that will make wireless access available to both documents and database.

Jones added “To me BlackBerry is the best business tool that I’ve been issued with since I was given my first company car. Today I’d give up my car before my BlackBerry,” concludes Jones. (Phillip, 2014)

References

BBC news. (2014). Blackberry reports $5.9bn annual loss. Available: http://www.bbc.com/news/business-26787225. Last accessed 24 April 2014.

Reuters. . (2014). BlackBerry sees loss and slumping sales, yet investors cheer anyway. Available: http://www.cnbc.com/id/101528116. Last accessed 24 April 2014.

IAN AUSTEN. (2014). BlackBerry Sees Hope for Future in Security. Available: http://www.nytimes.com/2014/03/29/technology/despite-loss-blackberry-has-some-hope-for-future.html?_r=0. Last accessed 24 April 2014.

Will Connors. (2014). BlackBerry's 'Bold' Strategy: an Old Phone. Available: http://online.wsj.com/news/articles/SB10001424052702303325204579466941735229448. Last accessed 24 April 2014.

Phillip Jones. (2014). Blackberry. Available: http://ae.blackberry.com/content/dam/blackBerry/pdf/caseStudy/europeMiddleEastAfrica/english/Interchange_CS.pdf. Last accessed 24 April 2014.