Wednesday, April 11, 2012

No Tools or Toys

I remember seeing this new Blackberry commercial a month or so ago, and wondering to myself how they thought obscure music artists would improve their personal handset sales. Moreover, it seemed by trying to dismiss other phones as "toys" (see iPhone), RIM was trying to ignore their competitors' capabilities and where the personal phone market seems inevitably headed.

So when this story broke two weeks ago I wasn't all that surprised. The story seems to closely mimic the reading we did for last week on Dell, as RIM has also decided to focus Blackberry on its corporate customers. The two quotes I have included below from RIM's CEO, Thorsten Heins, also provide some insight into RIM's self-evaluation and what led to the "substantial change" in strategy.

"We can't do everything ourselves, but we can do what we're good at."

"We believe that BlackBerry cannot succeed if we tried to be everybody's darling and all things to all people. Therefore, we plan to build on our strength."

Coming from the CEO, these are a clear admission that RIM has now acknowledged their place in the market, and answered the question, as Professor Zak said in lecture, "what are they not going to do?" Of course, we will have to wait and see whether this change is coming too late and whether there is enough opportunity left for Blackberry in the corporate marketplace "as employees demand iPhones or Android devices over BlackBerrys."

So do you think this was the right decision for RIM? Did they make this change in strategy and focus too late?

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