read SCENARIO and answer the question Blackberry’s Bust A pioneer in smartphones

Question

read SCENARIO and answer the question
Blackberry’s Bust
    A pioneer in smartphones, BlackBerry was the undisputed industry leader in the early 2000s, which were preferred by IT managers. Its devices allowed users to receive e-mail and other data in real time globally, with enhanced security features. For executives, a BlackBerry was not just a tool to increase productivity – and to free them from their laptops – but also an important status symbol. As a consequence, by 2008 BlackBerry’s market cap had peaked at $75 billion. Yet by 2015, this valuation had fallen more than 90 percent, to less than $7 billion. What happened?
    The introduction of the iPhone by Apple in 2007 changed the game in the mobile device industry. Equipped with a camera, the iPhone’s slick design offered a user interface with a touchscreen including a virtual keyboard. The iPhone connected seamlessly to other cellular networks and Wi-Fi. Combined with thousands of apps via the Apple iTunes store, the iPhone provided a powerful user experience, or as the late Steve Jobs said, “The Internet in your pocket.”
    However, BlackBerry engineers and executives initially dismissed the iPhone as a mere toy with poor security features. Everyday users thought differently. They has less concern for encrypted software security than they had desire for having fun with a device that allowed them to text, surf the web, take pictures, play games, and do e-mail. Although BlackBerry devices were great in productivity applications, such as receiving and responding to e-mail via typing on its iconic physical keyboard, they provided a poor mobile web browsing experience.
    Initially, mobile devices were issued top-down by corporate IT departments. The only available device for executives was a company-issued BlackBerry. This made life easy for IT departments, ensuring network security. Consumers, however, began to bring their personal iPhones to work and used them for corporate communication and productivity applications. This bottom-up groundswell of the BYOT (“bring your own technology”) movement forced corporate IT departments to open up their services beyond the BlackBerry.
    
The introduction of the iPhone is an example of which threat in the external environment?

Sociocultural

Political

Economic

Technological

1 points   

QUESTION 7

The “BYOT” concept is an example of which threat in the external environment?

Sociocultural

Political

Technological

Economic

1 points   

QUESTION 8

What was BlackBerry’s core competence?

Touchscreen

Apps

Cameras

Email and IT security

1 points   

QUESTION 9

Apple creating a different product to satisfy a similar need as the BlackBerry demonstrates a breakdown in which of VRIN criteria?

Inimitable

Non-substitutable

Rare

Valuable

1 points   

QUESTION 10

BlackBerry losing its competitive edge to the iPhone demonstrates

Relevant core competencies are not permanent

Intangible resources like experience and expertise in the market are a poor foundation     on which to build a sustainable competitive advantage

A differentiation strategy is superior to a cost leadership strategy in the smartphone industry

Companies are often guilty of stealing/imitating technology to create its own products

Sociocultural

Political

Economic

Technological

Explanation / Answer

6) i) technological advances. More value for money through a better overall browsing experience and many other features, captured the imagination of the public, due to focus on every technical aspect of the device rather than only security and encryption.

7) Sociocultural. Employees switched to personal smartphones instaedof company provided blackberries due to the need for constant social interaction and internet in your pocket concept.

8) Email and IT security. Blackberry prided itself on the level of security and ease of sending email, it had exceptionally superior technology in this area, which no competitor could beat.

9) Non-substitutable. The product should be so unique that it cannot be substituted by another within the segment, Apple achieved effective substitution by providing a product addressing major customer requirements providing more value and better utility than the blackberry. This was due to lack of management of the Blackberry to stay abreast of customer requirements through feedback and ignorance of demand. it also refused to react to the iphone in a quick and efficient manner to minimise damages, by modifying its product.

10) A differentiation strategy is superior to a cost leadership strategy in the smartphone industry. Consumers are not looking for the cheapest but value for money through the best features and browsing experience in smartphones. Blackberry did not recognise this need by being unaware of market dynamics.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.