Today with this article we will continue our article series in which we talk about case studies and business model of different startups and big companies. So today I am with you with a new startup company and we will talk about Blackberry Downfall- Case Study.
If you are finding a journey and about Blackberry Downfall- Case Study then you can read out this our article. We will deeply get information about the downfall of blackberry.
Blackberry was designed and developed by RIM ( Research in Motion) in 1999. It is a Canadian company.
RIM is a Multinational Canada telecommunication and wireless equipment company.
RIM also provides secure and high-reliability software for industrial applications and mobile device Management (MDM).
Blackberry’s software and hardware products are used worldwide by various government’s agencies and by car makers and industrial plants throughout the world, much of this activity being unseen by the public.
In 1992 Lazaridis hired Jim Balsillie, and Lazaridis and Balsillie served as co-CEOs until 22 January 2012.
In November 2013, John S. Chen took as CEO.
How Blackberry came to Existence:-
First of all, we see how blackberry established and share a good market share in the mobile market. But after that, we will use a Blackberry Downfall story.
The device is known as Blackberry because its black button keys on the black colour phone look like Blackberry fruit seed.
In 1984 Research In Motion (RIM), later renamed Blackberry was established. In 1999, RIM introduced the Blackberry 850 pager.
The device could receive push email from a Microsoft Exchange Server using its complementary server software, Blackberry Enterprise Server (BES). This feature set the stage for future enterprise-oriented products from the company.
In this way, Blackberry acquired the world mobile market.
The first Blackberry Smartphone “Blackberry 957″ was launched in April 2000.
The BlackBerry OS platform and BES continued to increase in functionality. The incorporation of encryption and S/MIME support helped Blackberry devices gain increased usage by governments and businesses.
RIM soon began Blackberry devices aimed towards the consumer market as well so now Blackberry was not just limited to corporate and govt officials.
Blackberry suffered the loss of many key figures in management, during its attempts to revive its market share. Jim Balsillie, the co-CEO in 2012, quit the board of directors.
Mike Lazaridis was against Jim’s idea to shift Blackberry’s focus to its instant messaging app (BBM)
Blackberry faces Innovative competition:-
Blackberry also faces an innovative phase in which they didn’t compete with market that5 led them to Blackberry downfall.
Apple introduces the iPhone in 2007. According to Mike Lazaridis “It looked like Apple Mac computer stuffed into a cellphone.
The iPhone OS took up 700 MB of Memory and used two processors. Blackberry, the device ran on one processor and used 32 MB of memory.
iPhone had a fully integrated capable browser which was missing in Blackberry.
Wireless companies like AT&T Inc had started introducing DATA packages to iPhone users.
RIM, it was using an elementary browser that limited data usage. Users could not take full advantage. One more thing is that users also could not take full advantage of DATA packages on blackberry phones.
Apple had signed an exclusive deal with its competitor AT &T and therefore Verizon wireless was frozen on iPhones. In the past RIM’s smartphones had been a huge hit for Verizon wireless.
Verizon executives approached RIM in June 2007, and asked if RIM could develop “iPhone Killer”.
It was RIM’s first touchscreen device and was difficult to operate. The device was also slow and buggy. RIM had failed to deliver the “iPhone Killer” Verizon Wireless decided to abandon the storm campaign.
- Android operating smartphones started to steal market share from Palm and Microsoft and eventually RIM.
- Blackberry failed to anticipate the emergence of the “app economy” which drove massive adoption of iPhone and Android-based-devices.
- Consumers no longer cared much for battery life or security features, they cared about apps. Apple and Google operating systems were built for making it easy on external programmers to create apps.
- Blackberry apps built on old programming languages were uglier and stifled creativity.
- RIM also exerted strict control over developers, costing Blackberry trending apps such as Instagram and Tumblr.
- After all these RIM was now focusing on building a device like Apple’s successful iPad tablet.
- It proved to be “an awkward accessory” to RIM’s smartphones and lacked e-mail, contacts and apps.
These are also other factors which led to Blackberry Downfall.
- Google makes its Android operating system available for free. Blackberry was unable to drop prices to retain the market share it was losing to Android.
- Android was made free to any handset maker causing Blackberry to lose orders massively. With RIM’s new products all failing, it continued to lose market share to Apple and Android phones.
- Growing demands of customer who wanted to surf the Internet on their iPhones, RIM planned to release its 4G phone. This was the Blackberry 10, which was another product that was delayed.
- Thus 2011 became a turning point for RIM, with its stock price falling from $69 (Canadian) in February to less than $15 by the year’s end.
We definitely know where BBRY turned out badly before November 2013.
BBRY attempted to contend head-on with unrivalled and better-scaled opponents.
Straightforward and coordinate assaults on more ground-breaking enemies lost BBRY billions of dollars.
The serious canons would be wise to showcasing, publicizing spending plans, organize impacts, and had vast frameworks to make completely coordinated biological communities (applications, excitement, and so forth.).
The organization planned complex remote information association systems which were utilized by the police powers, military, rescue vehicle administrations and such.
Following fast development also, advancement, RIM built up a progressive pager, a gadget that can be utilized to send and get messages which utilized their correspondence innovations.
Before long, this ‘individual communicator’ was named as the following enormous thing.
The [email protected] was sent in 1996 as RIM’s first handheld specialized gadget. In the following years, RIM proceeded with a line of developments and enhanced the handheld specialized gadget significantly.
By 1999, RIM propelled the Blackberry rebranded gadgets and email administrations which permitted clients to synchronize their gadgets with corporate email frameworks.
Request detonated, development proceeded. Blackberry turned into the notable in big business correspondence while their Blackberry Errand person (BBM) benefit was acquainted with customers that utilized a safe convention that can be utilized to speak with companions.
In 2007 the organization turned into the most profitable organization in Canada worth more than 67 Billion, with 10 million supporters of their administrations and presented their recently created Blackberry Curve gadgets. Lamentably, in 2007 the Apple iPhone was presented.
This minute onwards, the accomplishment of Blackberry was not any more historic, pursued by a time of decay and unsuccessful items, finishing in an uncontrolled key centre which an incredible. Loss of significant worth and a piece of the pie subsequently as portrayed in figure 1 which delineate the piece of the overall industry of Blackberry in cell phone offers of the supplier Verizon.
So after reading a long story about Blackberry Downfall. We get to see some facts about how the smartphone market changed a lot with innovations.
The main reasons for the demise of Blackberry were probably was probably its unwillingness to let go of its key successes such as its signature keyboard devices.
Lack of innovation and failure to anticipate how the smartphone revolution was going to carry forward.
I hope you guys enjoy my article about Blackberry Downfall.
This is a part of a series in which we tell you about startups and companies.