The Rise and Fall of BlackBerry Teaching
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GROUP 1 – Read the Case: The Rise and Fall of BlackBerry Teaching Note and Answer the Questions BelowCase Synopsis: The launch of BlackBerry by Research in Motion (RIM) in 1999 laid the foundation for the development of smartphones. The next decade was a period of spectacular growth for RIM, making its two co-CEOs billionaires. At the end of 2007 the company had a market capitalization of more than $60 billion. Sales peaked at almost $20 billion in 2011. In 2016, sales were $2.2 billion and the company had lost money for four straight years. With the market capitalization having fallen to $4 billion by August 2016, the survival of BlackBerry (the company changed its name from RIM to BlackBerry) was uncertain.Learning Objectives:
Understand the process of innovation and the linkages between strategy, competitive advantage, and innovation.
Understand the challenges of being a pioneer versus a follower.
Understand leadership and building a culture of adaptability and change, especially in a successful organization.
Understand some of the fundamental leadership differences between Lazaradis/Balsillie and Steve Jobs, especially as it relates to vision, customer focus and simplicity of message.
Case Study Questions:
Describe the industry that the original BlackBerry competed in.
Why was the original BlackBerry product so successful? What was the basis for BlackBerry’s competitive advantage?
When competitors introduced new products, how did BlackBerry react? Why did BlackBerry react this way?
Why was BlackBerry unable to sustain its industry position?
Sample Solution
The original BlackBerry product competed in the mobile telecommunications industry, which was undergoing a major transformation at the time of its launch. The introduction of new technologies such as the Internet and wireless data services opened up vast opportunities for smartphone manufacturers to exploit, many of which BlackBerry was able to capitalize on.
At its core, the success of BlackBerry’s product can be attributed to two key factors: its secure and reliable email messaging system, and its signature physical keyboard. By offering customers a suite of integrated applications designed specifically for business users—including personal information management (PIM) features like calendars and contact lists—BlackBerry quickly developed a reputation for being an indispensable tool in corporate environments. Furthermore, the ergonomic design of their physical keyboards made them popular among those who needed to send emails or type documents while on-the-go. This combination of secure messaging capabilities combined with user-friendly hardware gave BlackBerry an edge over their competitors, allowing them to gain significant market share over the next decade. As a result, they were able to build upon this initial success and develop a wide range of additional products that leveraged their existing strengths while also introducing cutting-edge features such as cloud computing support and touchscreens; thus giving them sustained competitive advantage within their industry during this period.