Analysts stated numerous theories to illustrate the reason behind the struggle of Blackberry. According to reliable source, the reason behind the struggle that has led in collapsing can be indicated to how the organization is driven.
It is evident that in the present era of technology, the business is usually driven by the product developers. In most of the cases, they emphasized in inventing everything new that includes new software, new functions and new gadgets. After a product or service is estimated as prepared to launch, the organization have discussion with the marketing and sales department to plan the best effective way to sell them. Critics are of the opinion that marketing is a vital factor that offers their favorable assistance with the R & D department in order to establish new product timelines and product specs.
On the other hand, experts opined, marketing is the lead business driver and not a support function especially in the arena of consumer business goods that include companies like Kraft, Nestlé, and P&G. It is worth to mention that it is the role of marketing department to identify the requirements of consumers, understand the opportunities or challenges that would lead changes in the existing products and generate a new product. Depending on all these insights of the consumers, new products are initiated by the marketing department.
Sources informed that in the early days of smart phones, Blackberry undoubtedly performed quite well being an R&D-led company. They led the market at that time, as they possessed some latest technology such as their keyboard and exclusive secure server.
It is reported that Android, Apple’s iPhone and others modified the entire category by creating the products that are proved to be more user friendly as well as appeal to a mass market. Analysts are of the opinion that the strictly technology driven organization does not able to sustain in the competition any longer when the entire scenario of smart phone market has changed, developed and became more competitive than ever before.
Critics opined that if Blackberry followed the marketing-led business structure, they could foresee several opportunities. By maintaining their own tech driven model, the company has failed to become accustomed to the changed market and overlooked the requirement of consumers. Blackberry required extremely long time to offer touchscreen items or a full keyboard and touchscreen combination to market.
In order to ensure the fact that the launches would appeal to a mass market, marketers of Blackberry did a lot. However, the problem is that they were unable to understand the demand of the market. It is evident that new products are continuously lagged behind their competitors as the consumers are becoming disappointed to find that the products were unable to satisfy their demands.
Reliable sources informed that the company realized the impact as the profits as well as sales are continued to turning down. Most strikingly, the success of launches is overestimated that include Z10 launch that results in declining stock price and a vicious cycle of missed profit forecasts.
However, experts suggested that in order to survive in the market, Blackberry requires to transfer their business models from the technology driven business.