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Susie Wang

on 5 April 2015

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Transcript of Blackberry

Human Resources
Blackberry's original target market was business professionals. This market really enjoys the keyboard and security features Blackberry offers.
One of Blackberry's biggest shortcomings that is driving their young adult audience away is their lack of the latest and greatest apps that are available on Apple and Android
App Gap
In October 2013, Blackberry revealed that they were going to refocus their attention on two new markets that they hope wouldn't care too much about the "app gap."
The second market that emerged were young adults who wanted the "smart phone" features of the Blackberry. However, Blackberry has not kept up with other smartphone companies such as Apple and Samsung and this has led to their young adult market migrating to these other companies.
Create more content than they consume
Enterprise customers
Want a more professional device
Target Market
4 P's of Marketing
- email
- mobile telephone
- instant message (BBM)
- text messaging
- internet faxing
- web browsing
- multi-touch interface
Promotes the BlackBerry as a phone perfect for the workplace but also great for entertainment uses, such as games, social networking, etc.
Sells their phones in retailers such as Best Buy and Future Shop (where their phones are on display along with their competitor's phones) as well as Target and phone service provider shops.
Sells in Canada, the United States, and other first and second world countries such as
BlackBerry stormed the market in its beginning period by focusing on enterprise sales and getting corporates to push the brand on their employees
480x360 pixels touch screen
8 GB eMMC, 768MB RAM onboard memory

$200 - $500 without contract, price is drastically decreased with contract
BlackBerry promotes their phones through advertisements on TV, in magazines, on websites, and even the Super Bowl.
Blackberry sells in Canada, the United States, and many other first and second world countries
John Chen - Chief Executive Officer
Dan Dodge - Cofounder, Chief Executive Officer, QNX Software Systems
Billy Ho - Executive Vice President, Enterprise Engineering
Eric Hohnson - President, Global Sales
Ron Louks - President, Devices and Emerging Solutions
James Mackey - Executive Vice President, Corporate Development and Strategic Planning
Nigel Perks - Executive Vice President, Human Resources
John Sims - President, Global Enterprise Services
Mark Wilson - Chief Marketing Officer
James Yersh - Chief Financial Officer
Steven E. Zipperstein - Chief Legal Officer
Board of Directors
Executive Team
5 Biggest Suppliers
Elcoteq SE is a Finnish Consumer electronics contract manufacturer that is headquartered in Luxembourg. It is a manufacturer of the BlackBerry and also performs repair and refurbishment services. Elcoteq has production bases in Brazil, China, Estonia, India, Hungary, Romania and Mexico.
Multi-Fineline Electronix, Inc. engineers, designs, and manufactures flexible printed circuit boards and related component assemblies for the electronics industry. The company works in the US, China, Singapore, Malaysia, Korea, and the UK.
Marvell Technology Group is a producer of storage, communications and consumer semiconductor products and is an expert in microprocessor architecture and digital signal processing. It has operations worldwide and its headquarters are in Santa Clara, California. Its international design centers are in Europe, Israel, India, Singapore and China.
Product Life Cycle
When Blackberry first launched their product consumers took great interest because it was the first of its kind.
Blackberry's competitors continuously improved their technology and marketed their products very well, whereas Blackberry couldn't keep up with the advancements in technology quite as well. With their loss of their young adult market due to this, their target market was dwindled down to the much smaller market of business professionals.
As Apple, Android, Samsung, and it's other major competitors comtinued to thrive and grow, Blackberry was pushed to the background. The company could go bankrupt in the future at the rate that it's going and it's time for Blackberry to develop an innovative and new gadget to establish it's place among it's strong competitors. Blackberry is now at it's decision point.
Decision Point
Blackberry's sales increased dramatically as more and more consumers used their phone. Blackberry went through their growth as competitors entered the market and modified the Blackberry by adding features and improving the quality.
As Blackberry's competitors continued to produce products that could do just about everything a Blackberry could, the company saw no new growth as new consumers replaced the old.
Case Studies
52 week high: $15.09
52 week low: $5.44
Market Cap: $4.46 Billion
Total number of shares: 288,058,247
Shares outstanding: 526,820,000
This is a chart of Blackberry's stock prices over the course of 5 years. As can be seen, one share of Blackberry used to cost more than $70 in 2010 but now costs less than $10.
German executive Thorsten Heins was appointed BlackBerry CEO on January 23, 2012, after former co-CEOs Mike Lazaridis and Jim Balsillie approached the board of directors with him as their pick. Previously, he was a long-time executive with Siemens Communications Group, which he turned around. Unfortunately, he couldn't accomplish this with Blackberry. His mission as CEO of the company was to turn Blackberry around and make the company successful again. Critics have accused him with a number of strategic errors, but they also believe the board directors deserve some of the blame. Some have said that Heins should have decided much earlier to focus on the business market where they had a niche instead of trying to compete in a larger consumer market where Apple and Google were gaining shares rapidly. Heins was fired by Blackberry after a less than two years.
John Chen replaced Thornsten Heins as Interim Chief Executive Officer and and was appointed Executive Chair of BlackBerry’s Board of Directors on November 4, 2013. He was formerly the CEO of Sybase company into a $1.5 billion-plus high-growth innovator. He is the current CEO of Blackberry.
many stores offer contracts
BlackBerry’s IPO was on the Toronto Stock Exchange on October 28, 1997. RIM began trading on the NASDAQ on February 4, 1999.
Mark Lazadiris and Jim Balsillie, co-chief executive officers of RIM, developed the iconic BlackBerry and began selling the device in 1999. BlackBerry revolutionized the mobile industry. It was the smartphone of choice for business employees for almost a decade. Apple and Android-based rivals like Samsung then entered the market and knocked RIM out of the top spot. Apple debuted the iPhone in 2007 and many critics didn't think they would be able to compete with Blackberry, however, BlackBerry is now nearing bankruptcy.
Mike Lazaridis was co-CEO of Research in Motion Ltd. with Jim Balsillie for two decades. On Jan. 22, they announced that were were going to leave their jobs at the Waterloo, Ont.-based company. He studied electrical engineering and computer science at the University of Waterloo, but dropped out in 1984, just two months before graduation in order to set up RIM. He received an honorary engineering doctorate from the University of Waterloo in 2003.
Jim Balsillie graduated from Peterborough Collegiate and Vocational School and received a Bachelor of Commerce degree from Trinity College at the University of Toronto. He then went on to Harvard Business School and earned his MBA. He was elected a fellow of the Institute of Chartered Accountants of Ontario in 2003. Has also received an honorary doctor of laws from Wilfrid Laurier University in 2003 and Dalhousie University in 2006. He began his business career as a chartered accountant. After completing his MBA, he became the executive vice-president and chief financial officer of technology with Sutherland-Schultz. He founded RIM with Lazaridis in 1992. Balsillie stepped down as co-CEO of RIM and resigned from the board of directors a few weeks later. He has been a sports lover since he was a child and made three failed attempts at buying NHL teams to move them to Hamilton.
John Chen
Thorsten Heins
Jim Balsillie
Mike Lazaridis
BlackBerry had about 12,700 employees by March 2013.
BlackBerry said on September 20, 2013 that it was going to lay off 4,500 employees - 40% of its global workforce - as it reports a nearly $1 billion second-quarter loss a week earlier than the results were expected. BlackBerry said it wanted to cut operating costs in half by the first quarter of 2015
BlackBerry 10
After numerous delays, the touchscreen Z10 and keyboard Q10 were released on February 5 in with hopes to bring the company back to the forefront and win back some customers. Unfortunately, the phones failed to turn the company around.
BlackBerry confirmed Novemeber 18 that it will also be laying off 250 employees at its Waterloo, Ont., headquarters as it begins its plan to cut 4,500 jobs during a period of uncertainty for the smartphone manufacturer.
Amidst all of BlackBerry's shortcomings, it has one bright spot: the success of BBM. Just one week after BBM debuted on Google and Apple platforms, it hit 20 Million downloads on Android and iOS devices. On the company’s earnings call in March, the company said that BBM now had 115 million registered users and 85 million monthly active users.
BlackBerry's competitors such as Apple and Android are continuously improving their phone features and releasing new products that their consumer base wants. As a result, demand for BlackBerry declines as BlackBerry's customers switch to other smartphones because they are substitute goods.
BlackBerry finds a manufacturer in China who offers to produce the internal NAND flash memory - the most expensive component of smartphones - for a very cheap price.
Due to the money saved on manufacturing internal NAND flash memory, BlackBerry can now afford to produce more phones at the same price, leading to an increase in supply.
The surplus of BlackBerry phones leads to a downward pressure on price. BlackBerry reduces the price of their phones, leading to higher quantity demanded.
320x240 pixels
512 MB eMMC / 512 MB RAM onboard memory
32 GB
BlackBerry Bold
BlackBerry Curve
John Chen
Prem Watsa
Barbara Stymiest
Timothy Dattels
Claudia Kotchka
Richard Lynch
Bert Nordberg
Due to the fact that the demand for BlackBerry products are going down, this results in a surplus of BlackBerry phones.
Jabil Circuit, Inc. was founded in Michigan by James Goldenis, and it provides electronics manufacturing services worldwide. Its headquarters are in St. Petersburg, Florida and they operate in 27 countries including China, India, Ukraine, Hungary, Malaysia, and Mexico. Jabil’s customers include Apple, Cisco, GE, IBM and RIM. Much of its manufacturing is done in Asia.
Qualcomm Inc.is an American global company that designs, manufactures and markets digital wireless telecommunications products and services. It operates in 157 places in the world.
All machinery and equipment used to produce BlackBerry phones and other goods
BlackBerry does have an official slogan, but they do have advertisement slogans such as "Be Bold" (BlackBerry Bold) and "Keep Moving" (Z10).
Includes all mental and physical work people put into production of goods
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