Friday, September 20, 2013

BlackBerry Stuck With $1 Billion in Unsold Phones

BlackBerry Stuck With $1 Billion in Unsold Phones

BlackBerry used to take more than half of American cell phone market by its handle email and Web-borrowing, which is only 3% currently. In latest quarter, BlackBerry left 1 Billion unsold inventory that 4500 employees working in the factory will be laid off.

Obviously, BlackBerry did a very bad marketing plan which sold its products very poor, but also did a wrong expectation about the market. In my opinion, BlackBerry focused on business consumers when it achieved greatest success by its advanced email system. However, this technology has been learnt by all other competitors. BlackBerry need to change its target markets or improve its comparative advantages. What BlackBerry did is looking for a new target market which turns out to be inexpensive consumers. In fact, Samsung has already taken this markets for years. 

The new product, Z10, is designed as touch screen instead of its feature-hard keyboard- to meet customers out of its targets. As a new manufacture to design touch screen smartphone, BlackBerry almost has no comparative advantage to Samsung or Apple so that the poor sales is not surprisingly.

Now the problem BlackBerry facing is not how to do its market plan well, instead it should consider how to survive as an independent cell phone manufacturer. The founder of BlackBerry has already began to find PE and IB to process a joint bid.

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