Questions for class discussion

• What was the primary cause of Blackberry’s demise?

• How could management have known that the iphone

represented such a disruptive technology?
 
• How could management still have prevented the collapse of
blackberry after realizing that the introduction of smart phones
ushered the world into a new era?
 
• How is this case insight related to the estimation of demand
discussed in this chapter?
Blackberry Demise
• Underestimated touch and app-driven
smartphone revolution
• Too much attention and resources on
consumer’s app store
• Lost their advantage with their core enterprise
clients – Corporates
• Slow paced transition as compared to the market
How could management have known that the
iphone represented such a disruptive technology?

Blackberry concluded that iPhone users

who would have to sent and receive
large number of mails would face
difficulties due to unavailability of
physical keyboards in the device.
Measures to be taken by Management
• Thorough market analysis of recent market
trends in the industry
• They should have taken the advantage of the
prevalent design and the market base they had
• Balanced investment of resources between
corporates and new consumer base
• Timely approaches to different sources of
finance
How is this case insight related to the estimation of demand
discussed in this chapter?

• Snobb appeal effect- Demand of the product

reduced as the market had been majorly taken
over by Apple and Samsung.
• Substitution effect – Demand decreased with
increasing number of substitutes in the market