Strategic Plan Internal Analysis - Essay Example

Evaluation of Blackberry`s External Environment s Affiliation Blackberry`s external environment has had a great impact on its financial efficiency in the Industry. Global Recession of 2008 had a negative impact in Blackberry as it decreased consumer spending in the large market surrounded by big and influential companies like Samsung and Apple. The company`s share price had a setback due to the economic recession displaying a close correlation and volatility to changes in the economic conditions.

Furthermore, scarcity in energy resources leads to a high increase in Blackberry`s production costs because of extensive oil usage in manufacturing (Levi, 2011).The bargaining power of buyers is high and consumers have access to more options in the mobile market characterized by the introduction of affordable smartphones from companies like Samsung and executive devices from Apple which have proved to be of high innovative power compared to BlackBerry. These companies have lured customers with user friendly technologies enabling their devices to be useful in all communication and productivity purposes.

The availability of more choices for consumers has reduced the power of Blackberry to demand for higher prices for its products. Carriers like Verizon and Telus purchase in large volume in order to meet their subscribers demand. When the demand of an item declines like in the case of Blackberry, vendors are forced to enter into contracts with other manufacturers to ensure demand is met and shift from low-profit grossing brand is addressed economically. Despite the fact that there are barriers to competition established by the government in the Canadian business market, the consumers’ ability to choose their products is reflected in the orders booked with suppliers like Blackberry by an individual telecom carrier (Levi, 2011).

In the competitive smartphone world, Blackberry lagged behind one or more phases in the adaptive cycle of innovation due to misalignment. This happened after the launch of the iPhone, a product customers considered mobile innovation meeting customer expectations in both design and capabilities. The 2007 iPhone design was extremely intuitive and user friendly, a competitive product that is responsible for declining sales towards 2010. Additionally, An android platform was then introduced by Google and focused on a user interface design for their operating system.

In 2008, Levi (2011) reports that Blackberry introduced the Blackberry Storm smartphone to face the competition and offer consumers an optimal experience and a better design. Unfortunately, this innovation was unsuccessful as the competition, pioneered by Apple and Google were ahead with in adaptation cycle strategies. Later Google introduced a virtual store called PlayStore that enables users’ purchase desired applications on their Android powered smartphones. Apple introduced AppStore as well showing a radical new phase of innovation but Blackberry did not release anything until 2009 when RIM`s Store was introduced.

Google and Apple were again a mile ahead of Blackberry making it difficult for consumers to depend on Blackberry based on the poor adaptability and changing consumer preferences (Levi, 2011).ReferencesLevi, C. (2011, December 29). The Year RIM Fell To Earth. Retrieved June 6, 2015, from http://ca.finance.yahoo.com/blogs/insight/2011-rim-fell-earth-152926790.html