The company still has a huge lead over the competition in terms of the installed base of customers, and I think it just might be able to return to growth by selling software licences that bring in recurring revenue.
Last week, BlackBerry held an investor conference that was widely attended by sell-side analysts. Blackberry is currently focused on a complete strategic overhaul. There is always the threat that a competitor might launch a product with the same features, at a lower price.
There are far more iPhones and Android devices than there are BlackBerry smartphones in the business world, and BlackBerry can now sell a single solution to help IT departments manage their whole fleet of mobile phones and tablets.
But on the software side of the business, I believe it is accurate to say the company is already growing again. The vast majority of these phones are not connected to any formal mobility management solution such the BES 12 sold by BlackBerry. What Is Product-Based Differentiation This differentiation strategy involves using the characteristics of the product you market to differentiate from your competitors.
Differentiation strategy of blackberry has an established reputation on these grounds. The short version is that revenue, earnings or cash-flow growth seemed too far off in the distance while the company was busy attempting a turnaround.
In our Blackberry example, the company evolved from a new entrant to an industry leader to a cost leader and then faded into irrelevance in a span of ten years -- this is by no means an exception. As their sales declined, they proceeded to cut prices to cater to lower-end customers and those in emerging markets.
With their focus on enterprise users, Blackberry clearly followed a "segmentation strategy" during this early phase. Chen has shifted BlackBerry away from its old model of selling software licences for a one-time fee. As I wrote in a previous postquality has become a point of parity, rather than a differentiation element.
Of course, the timing of strategy shifts may have differed by region. Blackberry attempted diversification, via the purchase of QNX Software Systems, an operating systems developer, in Last week the company formally launched BES 12, an updated enterprise server that allows IT departments to manage iPhones, Androids and both legacy and new BlackBerry 10 smartphones.
Companies most successful in using this strategy are those who focus on product innovation. This strategic shift holds promise for various reasons. If the overall cost is higher than the premium that can be charged for it this strategy is not worth pursuing.
If one of your competitors already owns that positioning your best bet is to explore a different option.
Faced with tough competition a company that offers sub-standard quality products has little chance of surviving.
Here is my take on it: If management is not willing to allocate the necessary resources which vary depending on the industry and level of competition then your strategy will die in its infant stages. Industry awards and independent test results are great tools to support this type of positioning.
Will my company be able and willing to deliver on that competitive advantage over a long period of time? Design— Attractive, unique product design is a very effective way to differentiate.
BlackBerry also announced a secure way to connect enterprise users to their corporate virtual private networks VPNsdispensing with the old, inconvenient and expensive method of using a RSA SecurID key fob sold by Citrix Systems.
Below are the most common ways to create differentiation: There has been great reception here as more than 40 million users have signed on to use BBM.
This is where the identity-utility framework becomes crucial.
The move is relevant, as the immense growth of smart device users in the recent years present a lot of growth opportunities to service providers and software developers. Product features and characteristics can be easily copied.
Having a proven recipe for success thus far, Blackberry substantially underrated and certainly did not anticipate the competitive threat posed by smartphone technology. Instead of competing on securing its own position within the general consumers market which is now heavily competitive and saturated by a plethora of smartphone companies, the company is currently looking to target enterprises and focus on enterprise services.
The Playbook again met negative reception and represented a commercial flop for the company, as it was over-priced, relative to its performance and technical capabilities. If you are marketing a commodity such as natural gas, oil, steel, you will find this strategy very difficult to implement.
This is in stark contrast to industries like apparel or automobiles where such changes could take decades or even longer. This question usually generates a lot of debate.
Over the next few years, Blackberry devices become popular among business users as "email access on the go" became a killer use case.Blackberry’s business-level strategies can be best understood and appreciated with a careful analysis of its strategic development to date.
Importantly, in earlywhen Apple introduced the world to the iPhone, Blackberry maintained and pursued strategies that did not account for the true.
The only way a brand becomes successful is through implementing a smart differentiation strategy. There are many options of differentiating a brand, depending on the company's internal capabilities and competitive environment. Research in Motion's future grows iffier each quarter as it signs on fewer new customers and has had to discount large numbers of BlackBerry smartphones and PlayBook tablets to clear inventory.
Differentiation Strategy Of Blackberry. Analyzing Strategies for Blackberry 1. Preface: They say “every good thing comes to an end” but what they never said is “every best thing might also come to an end” at-least in the case of Blackberry this has happened.
Once considered as one of the best smartphones of the world is now one of the uncool. The differentiation strategy, which BlackBerry undertook, entails providing products that offer benefits different from those of competitors, and that are widely valued by buyers (Sharpe & Dawes, ).Download