Strategic Management of BlackBerry - Case Study Example

Report on Blackberry By Name Course Instructor Institution City/State Date Introduction The introduction of smartphones saw the growth in the mobile industries as individuals scrambled to get a hold of a smartphone. In return, this led to numerous mobile companies entering the ready market and developing smartphones. BlackBerry a Canadian mobile manufacturer was not left behind and entered the race to win over customers as they developed smartphones. As the market for smartphones grew, so did BlackBerry which was attributed to their mobile platforms. BlackBerry ranked far much better as compared to its rival companies. This was attributed to the fact that many smartphone user perceived BlackBerry smartphones as superior compared to rival smartphones. Additionally, BlackBerry platform was more secured compared to other platforms thus attracting more customers. However, over the years BlackBerry has experienced growing decline of its market which has led to BlackBerry suffering huge losses. By the time BlackBerry realized that the company was going under a lot of damage had already been done However, it is quite possible to repair and safeguard the reputation of BlackBerry by looking at the various strategic options that are available to BlackBerry (Griffith 2013). Strategic options refer to approaches that an organization may take into consideration in an effort to maximize on profit. However, in the case of BlackBerry strategic options refers to approaches that the company may take into consideration in an effort to ensure that BlackBerry is able to compete with its rival (Ansoff 2007, p.100). Additionally, strategic option may refer to decisions that the company will have to undertake in an effort to ensure that the company does not suffer more losses. Strategic option arises from conducting strategic management. Strategic management, on the other hand, refers to analysation of internal and external factors of an organization in an effort to ensure that the company maintains its competitive edge (Morden, 2012, p.70). Therefore, by conducting strategic management a company is capable of maximizing on factors that empower it, while at the same time avoiding factors that are detrimental to the organization. Strategic Alliances Therefore, the first strategic option that BlackBerry could implement is to form an alliance with other technological company. Strategic alliance refers to an agreement between two organizations that agree to share resources with an aim of achieving set out objectives. Strategic alliances are supposed to benefit both organizations (Das 2012, p.133) This option could prove viable for BlackBerry as it tries to rejuvenate itself in the mobile smartphone industry. However, this is not easy because the company has to choose a company that is stable and has the capabilities of attracting its own consumers. However, for this alliance to qualify as a strategic alliance it has to meet certain factors. One of the factors is in relation to the ability of the alliance to wade off competition from rival organizations. This is to say that the alliance that alliance BlackBerry enters into must be capable of competing with its rivals. In doing so it ensures that BlackBerry is capable of recapturing its lost customer base. Additionally, it enables BlackBerry to further its technological advancement in the smartphone industry. Strategic alliance should also be one that is critical to the organization’s objective. This is to say that the alliance should be based on ensuring that both organizations are able to meet their core objectives. BlackBerry’s core objective is to ensure its survival in the ever growing smartphone industries. Therefore, BlackBerry should form an alliance that not only gives it a competitive edge over its rivals but one that ensures its continuous survival. Therefore, an alliance whose main aim is financial growth does not qualify as a strategic alliance (Freeman 2010, p.230) Additionally, a strategic alliance should a strategic alliance should be one that shares common risks in the course of operation. This is to say that an alliance should share common risks and should come up with mutual ways to mitigate through the risks. In doing so, the companies in the alliance are assured that when they are faced with risks they are capable of navigating through the risk. Therefore, based on these factors it is evident that companies enter into strategic alliances in an effort to improve their productivity and ensure the survival in their respective industries. It should also be noted that strategic alliances entail sharing of managerial duties. In doing so, the companies are capable of meeting the objectives of the alliance (Griffin 2007, p. 150). Therefore, since BlackBerry is undergoing hardships it will be quite beneficial to the organization if they were to form an alliance with another telecommunication company. This is because by forming an alliance the company is assured of survival. Additionally, the company might regain the competitive edge it had over its competitors which made it the preferred smartphone manufacturers (Lamb, Hair & McDaniel 2010, p.230). Diversification The second strategic option available to BlackBerry is diversification, whereby diversification refers to a strategy whereby it allows a company to enter into additional lines of lines of business. This means that a company is allowed to into businesses which are different from its core business. Diversification tries to ensure that a company maintains its competitive edge over its rival companies. Additionally, by being diverse a company avoids the possibilities of collapsing as a result of failure of its core business (Kenny 2009, p. 85). This is attributed to the fact that when there is an economic crisis all business sectors are usually affected. Therefore, by indulging in more than one business line a company safeguards itself as the effect is spread across the different business lines. BlackBerry is mainly known for its smartphones which is their core business, but they can also engage in the business of selling soft wares. This can be attributed to the fact that companies that are in software production experience large profits. The reason behind this is that software production has become an integral business opportunity attributed to the growing technological awareness (Ansoff 2007, p.420). Additionally, BlackBerry have been known to develop some of the most secure soft wares such as email platforms for BlackBerry. Therefore, it is evident that BlackBerry do have other assets that they could capitalize which could translate to profits for the company (Griffith 2013). However, diversification is not something that a company can decide literally, but have to put into consideration a lot of factors. This is due to the fact diversification may at times fail leading to companies experiencing losses that were not anticipated. Therefore, it is important for the company to put into perspective the existing environment. The existing environment greatly determines the profitability of the new business venture. Therefore, by analyzing the prevailing conditions a company is able to avoid instances of losses in regards to their new business venture (Kenny 2009, p.54). Additionally, by analyzing the prevailing conditions, a company is able to come up with ways to adopt thus increasing their profitability. Additionally, for diversification to be successful, a company has to adopt a new structure of management. This is to say that, the company has to establish a separate line of management whose sole responsibility will ben to ensure that the new products is profitable. Additionally, by developing a new a management structure for the new products ensures that the company does not make mistakes that could lead to failure of the new business venture. Additionally, through the new management structure a company is capable of coming up with ideas that are specifically tailored for the new business venture. This in return ensures that a company is able to create a name for itself among the existing companies thus gaining a competitive edge over its rivals (Ansoff 2007, p. 180). Therefore, in relation to BlackBerry it is quite important that the company establishes a new business line. This will ensure that that the company does not collapse as a result of its core business which is manufacture of mobile phones. Additionally, by engaging in diversification the company creates a new way of obtaining revenue and at the same time maintain its competitive edge over rival companies (Kotler & Keller 2011, p.300) Market penetration strategy Market penetration is the other strategy that BlackBerry could adopt in ensuring that the company maintains its competitive edge over its rival companies. Market penetration strategy entails that a company increases the market share for its products in the existing market through advertisements, price discounts and bundling. This strategy tries to expand the market of a product using the already existing knowledge of the industry (Estelami 2009, p, 194) BlackBerry being in the mobile and telecommunication industry for quite a while has broad knowledge in regards to this industry. Therefore, market penetration entails that BlackBerry should use this knowledge to reach out to more customers for its products. Additionally, by using this knowledge the company is capable of expanding its sales. As earlier stated that market penetration seeks to increase market share of a product and this strategy could prove vital for BlackBerry. This can be attributed to the fact that BlackBerry has always targeted the high end customers due to the high price of their mobile phones. As a result BlackBerry has fallen out of favor among the low end customers which in most economies form a large customer base. Therefore, in order for BlackBerry to increase its market share it has to lower it prices, such that their mobile phones are affordable. In doing so, the company is able to increase its market share in the mobile industry, which translates to profits for the company. Additionally, by reducing the prices of their products BlackBerry gains a competitive advantage as they have produce better products at an affordable price (Morden, 2012, p.160). Additionally, market penetration can be achieved through differentiation of product from products of rival companies. Differentiation arises whereby customers can identify with your products when comparing with other products. This could be due to differing features and the ability of the product to undertake tasks beside the core tasks of the product. Through differentiation a company acquires a loyal customer base which translates to more sale for the company. Additionally, through differentiation a company is able to attract customers of its rival companies. Therefore, this also translates to increase in market share for the company’s product. In relation to this (Ansoff 2007, p.230). BlackBerry should ensure that its mobile phones are unique when compared to other smartphones. However, the company should also ensure that their mobile handsets are easy to operate. This is because despite them being different and unique they could still face difficulties in increasing their market share as consumers may find it difficult to use the handset. Therefore, market penetration is a strategic option that BlackBerry may adopt in ensuring that it remains relevant in the mobile industry. Additionally, by adopting this strategy the company could still maintain its competitive advantage over its rival companies (Griffith 2013). Recommendation Based on these available strategic options the most suitable and viable strategic option is strategic alliance. This is due to the fact that strategic alliance offers numerous benefits that could highly ensure that BlackBerry maintains its competitive advantage over its rival companies. One of the main benefits is the fact that through strategic alliance organizations benefit from supplementary services. As a result of supplementary services, an organization is capable of ensuring that their customers enjoy unique services (Ansoff 2007, p.200). In relation to BlackBerry, by forming an alliance it is capable to meet its core functions which is manufacture of mobile phones and at the same time ensure that the mobile phones are different from those of rival companies. This can only be achieved by forming alliances with other telecommunication companies.in addition to this, strategic alliances enable organizations to reach out to new consumers. This is due to the fact that organization tap into the market that was previously dominated by the partners to the alliance (Lei & Slocum 2013, p.160) In addition to these, strategic alliance provides financial stability in that the companies share financial obligations in meeting the core objectives of the alliance. In doing so, this gives room for the companies to engage in other activities whose main objective is to raise revenue for the company. Additionally, strategic alliances increase brand recognition of the companies in the alliance. This arises as a result of tapping into the market occupied by the companies in the alliance. Therefore, by forming an alliance with other telecommunication companies, BlackBerry is able to reach out market that it could not previously reach. This in turn leads to brand recognition for BlackBerry products thus maintaining a competitive advantage over its rival companies (Ulijn, Duysters & Meijer 2010, p.150) However, despite the numerous benefits associated with strategic alliance, there are certain barriers to strategic alliance. One barrier is in relation to selection of the right partner to conduct business with. This arises due to the fact that despite an alliance companies normally retain their autonomy. This could prove challenging in the fact the right partner should be one who understands the challenges facing both companies. Additionally, the perfect partner should share the same interest in relation to growth of both companies. This is to say that the partners should enter into an alliance with an aim of both benefiting from the alliance, rather than one company benefiting from the alliance (Lei & Slocum 2013, p.78) Strategic alliance and management of resources According to Ulijn, Duysters and Meijer (2010, p.200) before engaging in strategic alliance each company in the alliance had resources that assisted the company in ensuring that the company achieves its core objectives. However, after engaging in an alliance the manner in which resources were managed changes. This attributed to the fact the companies have to distribute the resources among themselves if they are to achieve the core objective of the alliance. Therefore, this means that information relating to the operations of each of the organizations is to be shared between them. This ensures that the companies do not engage in activities that could be detrimental to the operations of the other company. In addition to sharing of information companies kin the alliance have to share the labor force and skills. This ensures that the employees of both companies have a better understanding with each other and the operation of each of the company. In doing so it becomes quite easy for the companies to achieve the objective of the alliance with very minimal challenges. Additionally, as earlier stated strategic alliance brings about financial stability in that companies in the alliance share financial obligation. This ensures that the alliance is capable of meeting its objectives with lots of ease. Therefore, strategic alliances is quite beneficial to the organization as it ensures that there is equal distribution of resources among the companies in the alliance (Lamb, Hair & McDaniel 2010, p.170). Strategic alliance and corporate social responsibility Over the years corporate social responsibility has become an integral part in the operations of any given organization in any given industry. Corporate social responsibility is described as a way in which companies give back to the community as a result of their operations. This is witnessed in instances whereby companies take responsibility for ecological changes that could arise from their operations. Therefore, as a way of taking responsibility companies undertake to correct the environmental defects arising from their activities. Additionally, company may give back to the community surrounding them by establishing projects for the benefit of the community. This concept has grown over the years and has proved not only beneficial to the communities but also to the companies. This is attributed to the fact that as a result of practicing corporate social responsibility companies have witnessed increased sales and awareness of their products (Visser, et al 2010, p.300) Therefore, after the formation of a strategic alliance the companies have to put into consideration corporate social responsibility. This ensure that the company develop a good rapport with the customers thus increasing their sales. Additionally, engaging in corporate social responsibility has always proven to be quite expensive, which has limited companies in engaging in it. However, as a result of strategic alliance it becomes quite easy for companies such as BlackBerry to engage in corporate social responsibility (Lamb, Hair & McDaniel 2010, p. ). This is in return ensure that BlackBerry maintains a competitive advantage over its rival companies. Additionally, through the alliance the company widens its brand as it undertakes in corporate social responsibility activities in markets that were not existing previously. Therefore, through strategic alliance and corporate social responsibility BlackBerry is able to safeguard its operations (Visser, et al 2010, p.100). Conclusion In conclusion, strategic management is quite important for any given organization due to the fact that strategic management tries to ensure the survival of the company in the future. This achieved by looking at some of the favorable strategic options available for the company. Each strategic option bears its own advantages and disadvantages over the other strategic option. Therefore, it is up to for the company to determine which strategic option best suits their operations. Additionally, by selecting the best strategic option a company is assured of maintaining a competitive advantage over their rival companies. Additionally, by selecting the best strategic option a company is assured of survival in the ever competitive market. Therefore, after analyzing the various strategic options that best suit BlackBerry, strategic alliance proved to be the most suited option. This is attributed to the fact that strategic alliance assures financial stability for BlackBerry. Recent years have seen BlackBerry sales drop tremendously meaning that it could face financial difficulties in undertaking various operation. However, through strategic alliance BlackBerry is capable of conducting their operation without fear. Additionally, through strategic alliance BlackBerry is able to tap into market that it did not have access to. This in return leads to realization of sales thus ensuring that it maintains its competitive advantage over rival companies. Therefore, strategic alliance is the most viable strategic option for BlackBerry considering the difficulties facing BlackBerry. 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