Blackberry Downfall Analysis

Changes in Motion: The Rise and Fall of BlackBerry

MGMT 5000

Company & Assignment Introduction

In 2007, over 10 million individuals worldwide are connected to the mobile devices of one company. This company seems to hold the keys to the castle and leads the industry in mobile interface, email security, and innovation; mobile devices by this company are found in homes and offices alike. As hard as is it to believe, six years later in 2013, the company that started and sustained this run in mobile devices is none other than Research in Motion, now known as BlackBerry Limited.

BlackBerry has been a topic of discussion in the mobile phone world for the past two years. A company that nearly created the smart phone industry through innovation has been overtaken by the likes of Apple and Android operating systems. A BlackBerry that formerly enjoyed market dominance now has only 3.8% of the personal-consumer market in the US. BlackBerry recently agreed to a $4.7 billion acquisition from its largest shareholder Fairfax Financial. Reports indicate that the company may go private in an effort to launch another attempt to recapture market share. Like any fallen champion, BlackBerry has a story; older articles, a company overview, history, and analysis reveal part of the story.

Company Overview

Research in Motion, now commonly known as BlackBerry Limited, is a Canadian-based company that provides wireless software, hardware, and services worldwide. In addition to these revenue streams, BlackBerry also collects revenue from software licensing agreements and network access fees. In the United States alone, BlackBerry is on AT&T, Sprint, T-Mobile, and Verizon. Their products reach over 170 countries with the United States & Canada as the company’s largest markets (Hoover 2014).  BlackBerry also has created pagers and tablets.

BlackBerry released its first smart phone in 2003 and as, a result, quadrupled its stock price. On March 1, 2003, BlackBerry had...