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Five Forces

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* In determining the industry's competition; Michael Porter's five forces of the outside- in business unit strategic model elucidates an analytical part in deciding Blackberry's competitive structure of the industry. It helps them see that their Bargaining Power of Suppliers could increase, due to their eroding market share, which makes them a company with great credible threats if they decide on forward continuity. This problem was evident when BlackBerry hassled to get a fundamental application for the launch of the Z10. Their Rivalry Among Competitors had begun to soar as Apple and Samsung had secured more than half of the Smartphone market (Bernstein, 2012), all because of their low product differentiation there posing a threat to their ability to make a profit. Their Bargaining Powers of Buyers however, has proven that the large numbers of competitors with other simpler products helps them demand for a better quality and service thus helping them remain in the market only with a threat of losing buyers if their product quality does not increase. Decreasing their Threat of Substitute in the mobile industry where developing a wristwatch that will perform the same functions as a Smartphone, are potentially replacing handheld smart phones out of the market- thus giving them a greater chance to raise their product prices and earn greater profits and having the ability of satisfying customers needs effectively. Wherefore, a market flooded with substitutes, will narrow profit boundaries and limit the amount of capital available for new product innovations making the market a Threat for New Entrants as it becomes very expensive to for them except they are able to produce a comprehensive and avant-garde product that can steal the market share from existing competitors.

Overall, Blackberry will need to find a way to make a difference or perish because it is in a...

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