THE RISE AND FALL

OF BLACK BERRY

Case Study
QUESTIONS ?
1. Describe the industry that the original BlackBerry competed
in.
2. Why was the original BlackBerry so successful? What was the
basis for the BlackBerry’s competitive advantage?
3. What type of innovative activity did RIM undertake during its
history?
4. When competition introduced new products, how did
Blackberry react? Why did Blackberry react this way?
5. Why was BlackBerry unable to sustain its industry position?
 Q1:Describe the industry
3

that the original BlackBerry

competed in
THE ORIGINAL BLACKBERRY, FIRST INTRODUCED IN 1999 BY
RESEARCH IN MOTION (RIM), COMPETED IN THE MOBILE
COMMUNICATION AND HANDHELD DEVICE INDUSTRY. IT WAS
PARTICULARLY RENOWNED FOR ITS EARLY DOMINANCE IN THE
SMARTPHONE MARKET, EFFECTIVELY PIONEERING THE CONCEPT
OF A "SMARTPHONE" BEFORE THE TERM BECAME COMMONPLACE.

BlackBerry was famous for its push email technology, which allowed users to receive
emails in real-time. This made it a preferred choice for corporate users who needed
instant access to their emails while on the go. BlackBerry Messenger (BBM) was also a
popular messaging platform.
BlackBerry devices were known for their robust security features, which made them a
preferred choice for businesses and government agencies. They offered encryption
and secure network connections, which was critical for handling sensitive
information.
 Q2:WHY WAS THE ORIGINAL BLACKBERRY
SO SUCCESSFUL? WHAT WAS THE BASIS
FOR THE BLACKBERRY’S COMPETITIVE
ADVANTAGE?
1. Push Email Technology: BlackBerry was one of the first to offer push email
technology, which meant that emails were delivered to the device as soon as they
were sent, rather than requiring manual retrieval. This feature was a game-changer
for users who needed instant access to their emails.
2. Physical QWERTY Keyboard: The BlackBerry's physical QWERTY keyboard was a
major differentiator at a time when most mobile devices relied on touchscreens or
physical keypads. This keyboard made typing emails and messages more efficient
and accurate.
3. Secure Messaging: BlackBerry implemented strong encryption and security
features, making it a preferred choice for business and government users who
required a high level of data security. The device's messaging service, BlackBerry
Messenger (BBM), was known for its security and privacy.
 5

Q3:WHAT TYPE OF INNOVATIVE ACTIVITY DID

RIM UNDERTAKE DURING ITS HISTORY

1. Product innovation - RIM is most famous for its BlackBerry smartphones, which were known for their
innovative QWERTY keyboards and secure email capabilities.
2. Paradigm innovation - RIM pioneered push email technology, allowing users to receive emails in real-time, a
feature that was especially appealing to business users who needed instant access to their emails.
3. Product innovation - RIM introduced BlackBerry Messenger, a proprietary instant messaging platform for
BlackBerry users. It became immensely popular, especially among younger users, and was one of the earliest
examples of a mobile messaging app.
4. Process innovation - wireless network (system level)
5. Product innovation - touchscreen devices (BlackBerry Storm) & Software and Services Transition
 Q4:WHEN COMPETITION INTRODUCED NEW
PRODUCTS, HOW DID BLACKBERRY REACT?
WHY DID BLACKBERRY REACT THIS WAY?

1. Slow response to touchscreen technology: BlackBerry initially underestimated the

potential of touchscreen smartphones, which gained popularity with the launch of the
iPhone. They continued to focus on their traditional QWERTY keyboard devices, leading
to a delay in adapting to the touchscreen trend.

2. Operating system changes: BlackBerry also faced issues with their aging BlackBerry OS,
which was not as flexible and user-friendly as the iOS and Android operating systems. In
response, they developed BlackBerry 10 (BB10), a new operating system, but its release
was delayed, and by the time it came out, it faced fierce competition.

3. App ecosystem: BlackBerry struggled to build a vibrant app ecosystem compared to

Apple's App Store and the Google Play Store. The lack of popular and essential apps
hindered the appeal of BlackBerry devices, especially to consumers.

4. Enterprise focus: BlackBerry had a strong foothold in the enterprise and government
markets due to its security features. In response to competition, BlackBerry tried to
maintain its dominance in these sectors by focusing on security and device management
features. However, this limited their ability to attract a broader consumer audience.
 7

Q5:WHY WAS BLACKBERRY UNABLE TO

SUSTAIN ITS INDUSTRY POSITION?

1. Lack of Innovation: BlackBerry's success was built on its physical keyboard, secure messaging system, and
email capabilities. However, the company failed to keep up with the pace of innovation in the smartphone
industry. It was slow to adopt touchscreens and modern app ecosystems, and its hardware and software offerings
became outdated.
2. Competition: The emergence of Apple's iPhone and Android-based smartphones in the late 2000s completely
changed the smartphone landscape. These platforms offered more versatile and user-friendly experiences, which
overshadowed BlackBerry's offerings.
3. Management and Leadership Issues: BlackBerry faced leadership challenges, including frequent CEO changes,
which hindered the company's ability to develop and execute a clear, long-term strategy. This instability affected
decision-making and innovation.
4. Failure to Adapt: BlackBerry was slow to adapt to the changing consumer preferences and the BYOD (Bring
Your Own Device) trend, which led to a shift away from BlackBerry devices in corporate environments.
 8

CEO’S OF BLACKBERRY

MIKE LAZARIDIS JIM BALSILLIE THORSTEN HEINS JOHN S. CHEN

CEO(Present)
CEO Co CEO CEO(2012-2013)
 9

MOST ICONIC BLACKBERRY PHONES

BLACKBERRY BLACKBERRY 7230 BLACKBERRY BLACKBERRY PEARL

QUARKPresident
6230 (2003) (2003)Officer
Chief Executive PEARL 8100 (2006)
Chief Operations Officer FLIP
VP8220 (2008)
Marketing

BLACKBERRY BOLD BLACKBERRY Z10 BLACKBERRY BLACKBERRY PRIV

TOUCH 9900/9930
VP Product
(2012) (2013)
SEO Strategist CLASSIC (2014)
Product Designer (2015)
Content Developer
 10

SUMMARY
BlackBerry, once a dominant player in the smartphone market, rose to
prominence in the mid-2000s with its secure messaging and email services.
However, it failed to adapt to the touchscreen era and lost market share to
competitors like Apple and Android. The company's decline was marked by
financial struggles and a shift towards software and security services, ultimately
leading to a diminished presence in the smartphone industry.
THANK YOU
Kalluri Sowjanya
Sowjanya1999.kalluri@gmail.com