Essay on Porter 5 Forces Analysis of Blackberry

* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.

Technology is a huge impact on society. It shapes the way people talk, work, and study. They can also change our perspective on life. However, the most influential change that came across the world is cell phones. They are one of the most valuable electronic devices that made it easier for people to communicate with another person. BlackBerry is the prime example of expanding the cellular universal. It changes the way people are using cell phones due to its high quality features. However, the BlackBerry company did not always have a perfect way of being managed and market internationally. They have had to deal with issues that affected them. Furthermore, there has been a case study about BlackBerry’s business aspects. It is called “BlackBerry

Till the year 2007 BlackBerry was the most successful company in the cell phone market and it was known for the innovative products and services. In the year 2007, BlackBerry was announced as the most valuable company in Canada with worth of more than 67 Billion and in the same period there were 10 million subscribers registered to the services as well as new Blackberry devices.

The product that I have selected will be in the telecommunication arena. There are four major companies that compete for exclusivity for marketing purposes over my elected product of Apple product/s. There is one major competitor to my product and that would be Samsung and Sony, however, the smart-phone is no comparison to any other phone in my era to date.

The strategic decision which is taken by the blackberry is that they are now trying to shut their phone business after 14 years of making handsets. So therefore the Canadian company has now changed their mind set and trying to focus on making software instead of hardware, so as they are switching from hardware to a software company they decided to outsource the manufacture of hardware to other companies.

RIM business model – BlackBerry sells purely through operators which can be time consuming and costly.

* To summarize, entry into the smartphone industry is not “HIGH” but to sustain and compete against the major giants is close to impossible.

. High possibility of a better product with advancing technologies may help entry of more potential entrants

Mobile phones have become a staple of the modern era and can be witnessed in the hands of the young and the old alike. In first world countries, it is almost a need to obtain a mobile phone as they have become seemingly crucial in everyday life. Even in third world countries it is not a strange sight to see people with cellular phones. They fulfill a significant role in how we communicate, keep track of time, remember our schedule and, digest new information. Cell phones release a completely new spectrum of what people can do on a single, hand-held device. It has become effortless to obtain a cell phone but it can be challenging to notice what makes them different and understand how these differences influence the product. Apple and Android provide distinct benefits and drawbacks that can sway or deter a possible consumer. Apple relies on a more corporate approach that entails consistent performance and security. Android contrarily allows distribution in a multitude of third party developers which creates consumer flexibility and customization. These particular focuses allow Apple and Android to succeed in their own consumer specific, market objectives while also competing with one another in the mobile phone market.

Along with the times, the sophistication of the technology gadgets increasingly hounded by the public. Gadgets that are selling well in the gadget world market today are the smartphone and tablet. Because both devices are the current market trends, mobile phone vendors are also competing with competing to provide the mobile device, be it a smartphone or tablet also with the best quality. With

Blackberry’s success and popularity before their setbacks can be attained to their exporting approach and strategies. Since Blackberry was formed and began manufacturing and selling their devices, they have certainly made a household name and reputation particularly in the enterprise segment both nationally and especially internationally. They previously secured market share in numerous countries as they rapidly expanded. This could not have been done without effective exporting modes and strategies. Unfortunately, as Blackberry’s main downfall was their products remaining static so too were their exporting strategies. Therefore, they must be further improved immediately in order to properly rejuvenate Blackberry in order to become a

Size plays a factor here as well. If the company is much larger than its suppliers, and purchases in large quantities, then the supplier will have very little power to negotiate. Using Wal-Mart as an example, we find that suppliers have no power because Wal-Mart purchases in such large quantities.

Today, Smartphones encompass wide range of devices, ranging from voice-centric handsets to converged multimedia devices integrating cameras, media players and personal navigation functionality into a single unit. Handset manufacturers gradually adopt OS to reduce development time and costs for the new models. Market size of Smartphones has grown from less than one million units in 2001, to more than 100 million units in 2007 already.

Overall the market has become saturated and is unattractive for new entrants but there is still a huge scope for existing market players like Nokia to capture market share by focusing on rapid innovations and marketability of smart-phones with the use of its pioneer brand image.

2.Bargaining power of Supplyers: Allthe mobile operators other than teletalk have international identity and have experience to work global platform.The bargaining power of suppliers in the mobile industry varies depending on the brand name and strategic importance of the supplies as well as the size of the company, such as Ericsson and Nokia siemens in the mobile telecom machinery industry