Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Strategic management
Essay on pestle analysis
Essay on pestle analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
1. Introduction: Once a leading manufacturer of wireless communication and embedded software solutions, Blackberry was founded in 1984 in Waterloo, Canada. In 2008 Blackberry was worth $83billion with a share price of $149.9, it was named by Fortune-magazine as “The world's fastest-growing company”(http://news.bbc.co.uk/2/hi/8206906.stm) Today, Blackberry’s share price around the $7 mark which left the company with a market cap of about $3.8B! In 2007 and after the huge success of apple’s iPhone, Blackberry decided to diversify from the Enterprise market into a new market segment(consumer market) using its existing product(the business phones). Although the initial results were appealing, the move had a massive negative impact on the company’s future. Blackberry lost focus on its core business and consequently lost its position as the “Business phone” market leader. Its Market-Share of the smartphone shrank from>21% to below 1%. In 2013, Fairfax Financial put an offer of $4.7billion to purchase BlackBerry, however the deal didn’t go through, instead, Fairfax agreed to invest $1B in Blackberry.(http://press.blackberry.com/financial/2013/blackberry-receives-investment-of-u-s---1-billion--from-fairfax-.html) 2. Problem approach This paper will analyse Blackberry’s current strategy and the challenges facing the company and will conclude with a recommended guideline for a new Strategy. The approach will follow the path highlighted on the Strategic Management Process depicted below (Adopted from http://www.planning-strategy.com/): 3. External Analysis: Several frameworks will be used to better understand the environment, the market and the competition: 3.1. PESTEL • Political: Due to the Cyber-security threats on many count... ... middle of paper ... ...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. Conclusion: Although many investors have written Blackberry off. It still possible that John Chen can reverse BlackBerry’s fortunes. With all the bad media around it, Blackberry was still able to sell 14 million phones, still being the leader in the Enterprise software business and has QNX, the star of the embedded software market. Equipped with John Chen and his team and with the right strategy in place, we might still see Blackberry as a Fortune 500 company, if so; John chen will be heralded for rescuing a Canadian Tech icon, possibly on the same level as what Steve Jobs did to save Apple.
On 20th December 2013, it was announced that BlackBerry and Foxconn had agreed a 5 year strategic alliance whereby Foxconn will design, manufacture and sell consumer BlackBerry devices in Indonesia and other emerging markets (Taylor and Mishkin, 2013). To develop our understanding of this alliance, one must view it in the context of both BlackBerry’s and Foxconn’s recent performance in the markets.
...lackberry has highly enriched and developed Canadian economy and job sector. Blackberry has been a very significant contributor to Canadian economy’s progression, employment and mobile advancement that defined and presented a powerful and technological Canada among the world.
BlackBerry timeline: A look back at the tech company’s history. n.d. 14 01 2014. .
Compared with the rate of many decades before, the rate of mobile usage is zooming these days. The developments of general economy and technology revolute peoples’ life styles and bring mobile business into a new page. Nowadays, business trends could still make a huge difference in those mobile companies.
is said to be worth approximately $705 Billion dollars. (Finger, 2013) Apple Inc considers itself
On a year to year basis the industry has grown 72.95 percent and on an quarter to quarter has grown 26.94 percent. This growth allows Apple to innovate and continue to lead the way in the industry (Total markets). As the industry grows Apple Inc grows with it as well. In 2014 Apple announced some very disappointing figures for its iPhone sales that had everyone thinking that it 's glory days when Steve Jobs ran the company is behind them. Then they reported the largest quarterly profit ever for a publicly traded company ever. This changed the mindset of everyone. Mr. Cook of Apple Inc stated “We certainly believe there are legs to it” when he commented about the iPhone sales growth. Some figures that he stated include that fewer than 15 percent of older iPhone owners upgraded to the iPhone 6 or 6 plus. Along with the majority of the people who did switch were from the Android operating system.
Cell phone manufacturers and service providers are at the core of the cell phone industry. These corporations are integral from their research and development endeavors to interactions with the consumer and the marketing of new products. The companies that control such factors of cellular phones are very numerous, so it is difficult to address all the cell phone manufacturers and service providers. However, we have focused largely on only the most significant cellular companies namely in the U.S. marketplace, although many have global ties. Collectively, companies around the world have the same goals in mind – to create desirable cutting-edge technology and to increase consumer satisfaction with hopes of generating sales, and thus profits.
Through its offerings Apple has been able to create a unique position for itself in the technology market. By operating on healthy margins it has been able to create phenomenal value for its shareholders. Apple, recently became the most profitable company in the world on the back of spectacular iPhone sales (34000 phones an hour) with around $180 billion in cash in its bank account. This is definitely a defining moment for Apple. As per the chart below showing the geographic distribution of Apple’s revenues, the Europe and the American markets are saturating
The main areas that the framework focuses on are Business Landscape, Strategy, Resources and Processes, Key Processes, and Performance (AIPA, 2016). For instance, the Business Landscape allows management to assess the macroeconomic environment in the geographic area the company operates by addressing factors such as inflation rates and GDP growth. Additionally, the strategy section of the framework deals with the vision and mission, SWOT, goals and objectives, corporate strategy, business unit strategies, and business portfolio of an organization. For example, management has to include some the threats that the company faces so users can have an idea about what could impact the company’s future earnings. Furthermore, As a result, EBR is a new way to better understand a company value, long-term strategy, and
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
In addition to iOS and android, Wikitude also supports in Blackberry 10. Wikitude supports the GPS features, has markers and IMU Sensors, but does not have trackers for face recognition and no Unity for 3D. It works on the Wikitude Studio Framework.
BlackBerry, formerly known as Research in Motion (RIM), was a market leader and innovator for smartphone products. The business and government sectors found the BlackBerry device particularly useful because of its email capabilities, superior security system, and convenient keyboard. As the smartphone industry began to shift its focus towards the average, everyday customer, competition increased, and BlackBerry’s first-mover advantage began to decline. Over the past five years RIM has changed its corporate name to BlackBerry, been purchased by private equity firm Fairfax Financial, written down over $1 billion in assets and unsold inventory, and laid off more than 40% of its workforce (Connors).
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
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.
1998 – Cisco is the first company to achieve market capitalization of $100 Billion in just 14 years.