The Rise and Fall of

BlackBerry

Jyotish Shankar Menon

220101053
Q1. Based on the Value Net diagram, highlight the rapidly changing Industry Environment
( Technology ,Buyers, Suppliers, Competitors & Complementors) for smartphones during 1999 to 2009.
Correlate these trends with Blackberry's changing business models as of 2005, 2007, 2009 & 2011.Do you
agree with the business model changes? Explain the strategic rationale for your answers.

The smartphone industry underwent rapid changes between 1999 to 2009. Below are the changes in each factor
of the Value Net diagram:
• Technology: The technology for smartphones evolved rapidly during this period. The introduction of
touchscreens, 4G networks, and app stores revolutionized the industry. Companies that were not able to keep
up with the technology changes lost market share.
• Buyers: Consumers started demanding more from their smartphones, such as better cameras, longer battery
life, and larger screens. The target market expanded beyond just corporate users to include everyday
consumers.
• Suppliers: The suppliers of smartphone components, such as chipsets and displays, became increasingly
important. Companies that were able to secure reliable suppliers were better positioned in the market.
• Competitors: Competition in the smartphone industry intensified as new players entered the market, such as
Apple with the iPhone. Established players, such as Blackberry, faced increasing competition from new entrants.
• Complementors: The ecosystem of apps and services for smartphones grew rapidly during this period.
Companies that were able to offer a robust ecosystem of apps and services were better positioned to compete.
Blackberry's changing business models during this period reflect the rapidly changing industry environment:
• 2005: Blackberry's main target market was business users, and the company focused on providing secure email and
messaging services. The company's business model was centered on selling hardware and services to businesses.
• 2007: Blackberry introduced the Blackberry Pearl, which was targeted at the consumer market. The company's business
model started to shift towards selling hardware to both businesses and consumers.
• 2009: Blackberry introduced the Blackberry App World to compete with Apple's App Store. The company's business model
started to shift towards selling a more robust ecosystem of apps and services.
• 2011: Blackberry introduced the Playbook tablet, which was not well received in the market. The company's business
model started to shift towards diversification, with the acquisition of QNX to expand into other markets such as
automotive.

Blackberry's business model changes reflected its attempt to adapt to the rapidly changing industry environment of the
smartphone market.
Introducing Blackberry Pearl in 2007 was a smart decision as the consumer market for smartphones was growing rapidly and
represented a significant opportunity for revenue growth.
The introduction of the Blackberry App World in 2009 was important because the ecosystem of apps and services had
become a key factor in the success of smartphones, and Blackberry needed to have a strong offering to remain competitive.
The acquisition of QNX in 2011 reduced Blackberry's exposure to the rapidly changing smartphone market and provided
opportunities for revenue growth in other areas.
However, Blackberry was ultimately not able to keep up with the rapidly changing industry environment and lost market
share to competitors such as Apple. In hindsight, it's clear that Blackberry's business model changes were necessary to adapt
to the changing market, but they were not enough to ensure the company's long-term success.
Q.2 Based on the Innovation- Landscape diagram, classify as Routine, Disruptive, Radical or
Architectural, BlackBerry's launch of the first Blackberry smartphone in 1999, model 957, BBM, Bold ,
Storm & BlackBerry App World. Which of these launches were successful ? Why? Using the relevant
Strategy concepts / models , explain why the other launches failed ?

• The launch of the first BlackBerry smartphone in 1999, model 957, DISRUPTIVE ARCHITECTURAL
would be classified as a radical innovation. It was a groundbreaking
product that introduced a new way of mobile communication by Bold
offering email services and a physical keyboard. Storm
• BBM (BlackBerry Messenger) was also a radical innovation in the
messaging space, which allowed users to send and receive instant
messages, share media files, and have group conversations.
• The BlackBerry Bold and Storm were architectural innovations that ROUTINE RADICAL
introduced new features and capabilities to the BlackBerry line, BlackBerry App Model 957
such as touch screens, improved cameras, and faster processing World BBM
power.
• BlackBerry App World was a routine innovation that followed the
trend of app stores, allowing users to easily download and install
third-party applications.
• Among these launches, the BlackBerry smartphone and BBM were the most
successful innovations for BlackBerry. These products created a loyal user
base of business professionals who valued the secure messaging and email
capabilities of BlackBerry devices.

• However, BlackBerry's later launches, such as the Bold and Storm, were not
as successful. One reason for this was the emergence of new competitors in
the smartphone market, such as Apple's iPhone and devices running
Google's Android operating system. These competitors offered more
advanced features, better user experiences, and access to a broader range
of applications.

• Another reason for BlackBerry's decline was its failure to adopt a customer-
centric strategy. BlackBerry continued to focus on its traditional customer
base of business professionals and ignored the growing consumer market
for smartphones. This lack of focus on consumer needs and preferences
made BlackBerry devices less attractive to a broader audience.
Q3: Based on your analysis of BlackBerry's competitively valuable resources, capabilities & distinctive
competencies during the 5 years-2011 to 2016, explain BlackBerry's Strategic challenges during this
period leading to the sustained erosion of its global smartphone market share , annual Revenues and
losses every year from 2013 to 2016.What are your learnings from this Case? Why ?

BlackBerry faced several strategic challenges during the 2011-2016 period, including:
• Failure to keep up with consumer demand: BlackBerry's focus on enterprise customers meant that it did not
invest enough in consumer-oriented features, such as touchscreens and app stores. This made its devices less
attractive to consumers, who increasingly preferred devices with these features.
• Lack of innovation: BlackBerry failed to innovate quickly enough to keep up with competitors, such as Apple
and Samsung, which were introducing new features and technologies at a much faster pace.
• Inadequate marketing: BlackBerry did not invest enough in marketing and advertising to compete with
companies such as Apple and Samsung, which had much larger marketing budgets.
• Inability to adapt to changing market conditions: BlackBerry was slow to respond to the shift towards mobile
devices and the decline of the PC market.
• As a result of these challenges, BlackBerry's global smartphone market share declined from 20% in 2009 to
less than 1% in 2016. The company's annual revenues also declined from $19.9 billion in 2011 to $2.2 billion
in 2016, and it posted losses every year from 2013 to 2016.
• The key learning from this case is that companies need to be able to adapt quickly to changing market
conditions and consumer preferences. Failure to do so can lead to a decline in market share and revenues.
Companies also need to invest in marketing and advertising to build brand awareness and compete with
larger rivals. Finally, innovation is essential to staying ahead of the competition and meeting the needs of
customers.