Free Essay

Zain

In: Business and Management

Submitted By shiekhzainy
Words 3212
Pages 13
International business

module code
MOD001055

International Business: Element 010 – Assignment 3000 words (80%)

Lecturer name
INDRA BALAN
Table of contents

Introduction * Market share * Beginning specification

Current situation for BLACKBERRY
Market strategy
Chronological of economy slowdown in the host country
PESTEL analysis * POLITCAL * Economic factor * SOCIAL * TECNOLOGY * Legal * Environment
CONCLUSION
RECOMINDATION

Introduction
In this world there are different types of smart phone companies but we need to cover one Multinational company and that will BLACKBERRY limited.
Basically black berry is founded in 1984 by Mike Lazaridisin in waterloo, Canada. Blackberry limited is also known as motion research limited, it is a Canadian wireless and telecommunication equipment company. The black berry first device 850 was introduced in 1999 with the name of two way pager. The name so the cell phone was chosen due to the resemblance of the keyboards button. And that also compose with the blue berry fruit.
The first devices of original black berry are RIM857 – 850 are introduced with the Data TAC network operation. And after the new device name as Convergent smart phone was commonly known was introduced. With the specification of mobile telephone email services and the main production is text messaging.
Market share
In the year is 2003 they gained a huge market share in the industry of cell phone, by just concentrating the specification of email in their devices. And the main offer which is introduce is email service on nonblack berry cell phones, for example like nokia, palm tero. By using software black berry connect.
Beginning specification
The black berry device have monochrome display, while in 2003 only blackberry have a monopoly of this display. And after the main and popular thing which help to promote the black berry company is trackball. This is the one thing which differentiate the black berry product at that time. In it is introduced first on the device name as Curve 8500 series. This series are also called the back bone of the black berry series.
Current situation for BLACKBERRY
Black berry limited, once the leader in market of smart phone has seen fast weakness in a popularity and sales of it devices. In the last few years. When the time market of black berry came to the dead line, than the new CEO John chen entered in the company. After he entered in the black berry company, now the current situation he has introduced budget and the employees cuts bring the expenditure of the company and to make it more efficient.
Mr chin have a confidently claimed that in 2016. He will make the black berry company, as profitable one. This strategy make the positive thinking in investors mind and they look the company as a profitable company.
A new black berry technology solution was announced in august, 2015 by the CEO will introduced an innovation asset like QNX. The black berry company have aim to expand it into the new market outside the core one. And with the help of BTS it find itself better to accelerate its innovation and growth in market.
The company has started to provide, enterprise customers with the “end to end enterprise solution mobility” that is the best and secure feature of black berry device. The most attractive choice among to the creativity is the new “machine to machine view” and it is the most prefer choice in in current solution.

Market strategy
The market strategy, which is used by the black berry is, to attract the youngster around 17- 24 for their sale. To sell their devices to youth and young professions. They also promote the personality of brand. Black berry makes their devices to look like more imagination, innovation, to compete with their competitor’s technology. They mostly make their devices in widely design with the external keyboard. Black Berry Company mostly prefer to make their device look classic in look and display. And their mostly devices colors are youthful colors.

Chronological of economy slowdown

In 2007 black berry launched a new series of 8800 and also generated more higher than 10 million subscribers around in the whole world. And at that time black berry is known as more hitting cell phone company with worth of £ 49 billion. But when the apple generation start came into being and was also claimed, at that exactly time it went wrong for black berry.
The launch of iPhone in 2007 is a downfall of blackberry smartphones in TMT technology media and telecommunication industry. At that time black berry real fails to match up with the new innovation and with latest technology, which is introduced by Apple Company. So in 2009 when the apple new generation apple 3G were launched in well countries like japan, UK, USA, Australia, etc. that cause a main effect on the black berry industry. According to the kailer osan “blackberry failed to anticipate that customers- not business customers- would drive the smartphone revolution”
.
The second approach for analysis is the share price. Market base indicate a very applicable measure and very easy to understand. Share price assess observation of the company in the market and proxy of black berry reputation.
The graph which is given down show that, trend until 2007, the firm has been able to form a good position in a market. Followed by drop in 2008. However, the main financial crises also cause or accountable for such unbelievable fall.

Since the beginning of the smart phone era, blackberry market has reliably start losing his market share and can see it stock price desirable every year in response to economic fall down and the firm finally cut down it costs in 2014- 2015. Thereby improving its gross profit.
Cash flow from investing will going to make difficult to blackberry to respond to anticipate the market movements and possibility investment opportunities in the future. The firm black berry highly exposed to the risk. And currently destroying the value.

PESTEL analysis
PESTEL analysis is a concept of marketing principle. This is used as a tool in a companies to get a track, how they are behaving and operating. PESTEL is a combination of 6 words, which are political, economic, social, technology, legal and environment. It gives a view of the whole environment from different angles. To operate in or to plain to launch a new service, product, project etc.
SO, we are going to use PESTEL FOR our MNC Company for BLACK BERRY

POLITCAL
It is very common nowadays for any MNC to face a political issues, so in 2003 for black berry is issued a ban for selling their cell phones in United States. In 2005 RIM agrees to pay 455$ million to settle argument between them. Sending in stock more than 17%. After a few months NTP and RIM fails to settle the settlement.
The friendly weather in USA, has helped the industry of smart phone especially to RIM to show as near survey pointed out the user smart phone will overtake the specfication phone user in 2011. The main challenge for MNE Company is on countries like UAE, India, china, where the country rise the issues of security feature in black berry. Black berry provide to user, as become hard monitor for government authorizes (BBC, 2010). RIM has also established in Kuwait, Saudi Arabia, Egypt, Indonesia the above mention reason (guardian, 2010) some other major political concern are European countries like Germany, UK etc. have showed strict regulation with respect to hygiene and standard of manufacturers, which may impact the working of RIM as faces pressure from the usage of toxic contents, energy usage and recycling (farrar.j 2009). (Nielsen, 2011)

Economic
The economic factors gives a very important role in the smart phone industry. The demand is elastic and base on the customer’s income. But the current situation, due economic downturn has impact directly to people thinking, customers have less demand to spend on the black berry products unless the price is less or promised value. But the smart phone industry is expected to grow at fairly steady pace and it is started to develop economically in china, UAE and India. Since the sales of the black berry cell phone are made throughout the world wide, the exchange it will also going to have an impact on the RIM (Research in motion), as the variation in the exchange rate can suddenly make black berry competitive or excessively expensive. so this cause the main different in their business but mostly depends on a countries matters In the fluctuation of the exchange rate can have profound on the black berry especially in the sensitive market of the price like UAE china and India. RIM have also stock option in the various countries in the world and the exchange rate will directly affect realized return on investment with overseas holding. (RIM, 2009) (economic times, 2011)

SOCIAL
Social factors are also mostly and directly impact to the business, social factors such as life style, standard , income level, status and also the cultural aspects have an importance on a seasonal sale, same like in USA sales of the black berry cell phones and the other electronic equipment’s have a greater demand in the month of November and December (jaroslovsky.r, 2010) and other big factor which impact on RIM is the ever using of black berry by the anti-social elements which have directly impact on the brand image and the products because the customer market so sensitive in religious countries and may be the business market decline to use of the products through anti-social elements will impede the performance.
TECNOLOGY
In 2007 the technology have highly impact on the industry and in particular RIMs product, as the customer base of demand and honestly new feature in the black berry products like by introducing the 3G advantages technology in their cell phones, that has an impact highly impact in RIM. The black berry are highly adaptable to provide with new design and technology and features and also got the ever increasing in the competition to compete with the soft wear advantages.
The black berry device/ smart phones have changed their technology in different ways by introducing the advanced HSPA/UMTS (the access of high speed / universal telecommunication)
GSM/EDGE/GPRS (global system of mobile communication/enhanced data rates for global evaluation/ general package of radios), CDMA /Ev-DO, this all the feature which are mostly use in the every black berry devices. And this all gave the good impact on the customers and competitors.
Black berry they are using BBM (black berry messenger) that gave the positive effect to the buyer and customers. Because this technology is very useable and easy to use to communicate but in November 2013 they promote this BBM services to other devices, like android, windows phone and IOS by using play store or app store. So through BBM they got 260 million new users in 2015.
Black berry is consider as the of the major smart phone vendors worldwide. It is specialized due secure communication system. For new black berry devices have 10 operating system (bbos7). So they also have separate internet services in 91 countries and more than 500 application service operator are using various mobile technology.
Legal
The major issues which are effecting RIM legally are, the company services are honestly secure but it become hard to monitor, so regulation countries like UAE, India etc. are considering to ban this services, this will going to have a big impact on the black berry business (BBC,2010)
Also RIM blackberry is facing various legal battles with other companies like motrolaetc, visto have implication on the company. RIM in 2008-2010 is facing from Minerva industries, while two complements are against RIM, infringement of the patent. In December end 2008 MSTG field a patent infringement claim against the company (BBC, 2008). The future law suits also suffer in expensive settlements, so all this given legal issues will going to pay a large impact on the company performance.
Environment
The environment also effect a business a lot. And some of the business completely depend on the environment condition. according to biccone “manufacturer must obey that the standards and RIM over the years have ensured that the standard of manufacturer are honestly eco friend and mishap could be tarnish the image of black berry company, in the consumer market” thus the environment factor like the product usage, recycling, energy usage while during developing may also effect the company status.

Thus, this all are the PESTLE for black berry company, where we discussed about the political condition, economical, socially, technology wise, legal wise and the environment of the company.

CONCLUSION
It is well known thing that in this never ending world, there are many counties and it means there are many MNC also. So it means that every MNC have their own power, strategies, decision to take over their company and protect it from the competitors. But somehow some steps of companies may not go well and it will start facing fall down and then company will try to come back to it position. WELL in this report my chosen MNC is black berry limited company. Black berry is also named as BB. So it basically this design is copied from blue berry fruit. And in year 1984, in waterloo Canada. It is also name as motion research limited. They introduced the company by the devices RIM857 – 850. This devices help the company to stand and to face to the market. And these devices are introduced data TAC network operation. And after the new device of black berry came into being name as CONVERGENT with the specification of mobile telephone and the main production which is included is text messaging.
In the year of 2003 the company was started to boost up and that was the year were the blackberry start to be popular day by day. And the main specification in this year is, email service in black berry smart phon. this application is used for nonblack berry. The specification in 2003 black berry phones they have advantage of their screen known as monochrome, and the main advantage and monopoly which black berry have that is touch sensor and track ball which is introduced first in the curve 8500. So this series of smart phone change the demand of black berry phones.
Now the situation of black berry is improving after its fall down due to the new CEO. And the new CEO have so confident to improve the current situation of the company and looking forward to have a profitability company in the market. A new technology is introduced by black berry is QNX. And also they are working in the new innovation of machine to machine.
In the year of 2007 black berry was the world most known useable phone due to its specifications. But in the end of 2007 it’s a great downfall for black berry due to launch of apple inc’s first model “iPhone” the market of black berry fell down because it was a high impact to the customers of first phone with one home button and complete touch.

Recommendation
So in the part of recommendation, I recommend to black berry company, that they are focusing mostly on wider phones like attach external keyboard. They are less focusing on the touch screen smart phone, and now a days there is a trend of touch screen. And I recommend to the black berry to introduce touch screen with home button sensor. It will going to be more attractive because in 2007 black berry boost up with the TRACK BALL and home screen sensor.
I would like Blackberry Company Limited (Ltd) to introduce their own Blackberry OS again as it was famous before in the worldwide, but it should be something new than before, it should be more lighter, smooth, connecting app stores and it should be easy to use because I want the company to rock again in the market which was before in few years ago and due to this the customers will be again attracted and it will result good again in the industries. Basically I would like to the blackberry company to introduce new phone, models with other devices like tablets and want them to diversify in laptops.
Black berry are using normal and random lock screen system. I need to upgrade the lock screen system into pattern and finger print. Because now a days the competitor of black berry like iPhone, Samsung they both are using pattern and finger print system. So if the black berry will offer the finger print system so the demand will be more twice, which is have now. so I would to black berry company to upgrade their phone models with high security unlocking system “sensor of finger prints” same like its competitors iPhone and Samsung devices.
I will recommend to the black berry limited company, or to collaboration with Microsoft inc windows OS, by this people can share their data and storage from windows to windows. Which will be easy and benefit for customers.
The black berry tried the experience of tablets and cellphone and I recommend to introduce gorilla glass with 3D touch as apple incorporation latest model “iPhone 6s” so this will also good way to catch the customer attractiveness and it will also increase the demand of the company because 3D touch help the user to use the black berry device easily.

References

black bery. 2012. introduction. [ONLINE] Available at:http://searchitchannel.techtarget.com/feature/Introduction-to-the-BlackBerry. [Accessed 02 December 15]. appworld. 2011. introduction. [ONLINE] Available at:https://appworld.blackberry.com/webstore/content/59208/?countrycode=MY&lang=en. [Accessed 02 December 15]. gsmarena . 2012. specfication. [ONLINE] Available at: http://www.gsmarena.com/blackberry_z10-5251.php. [Accessed 04 December 15] telegraph. 2009. current situation. [ONLINE] Available slide share . 2009. petsel. [ONLINE] Available at:http://www.slideshare.net/parabprathamesh/blackberrymarketing-strategy. [Accessed 04 December 15].at:http://www.telegraph.co.uk/technology/blackberry/. [Accessed 02 December 15]. reters. 2007. petsel. [ONLINE] Available at: http://www.reuters.com/article/us-rim-blackberry-lawsuits-idUSTRE79I7EI20111020#7uTLFvrPQ0TuvIdr.97. [Accessed 03 December 15]. black berry. 2015. petsel. [ONLINE] Available at: http://us.blackberry.com/company/about-us/corporate-responsibility/product-sustainability.html. [Accessed 03 December 15]. bloomberg. 2011. economy slow down. [ONLINE] Available at:http://www.bloomberg.com/news/articles/2015-09-22/china-heads-to-japan-like-slowdown-as-debt-swells-chanos-says. [Accessed 05 December 15]. cnbc . 2008. economy slow down. [ONLINE] Available at: http://www.cnbc.com/2015/08/30/smartphone-slowdown-hits-where-it-hurts-jobs.html. [Accessed 05 December 15]. gulfnews. 2014. economy slow down. [ONLINE] Available at:http://gulfnews.com/business/economy/slowdown-in-economy-will-be-mild-in-the-uae-1.1609048. [Accessed 05 December 15]. bbc. 2010. economy slow down. [ONLINE] Available at: http://www.bbc.com/news/business-32717270. [Accessed 05 December 15]. economic time . 2011. economy slow down. [ONLINE] Available at:http://economictimes.indiatimes.com/mobileappsblackberry/11352785.cms. [Accessed 05 December 15] engadget. 2014. year by year. [ONLINE] Available at: http://www.engadget.com/2009/12/28/ten-years-of-blackberry/. [Accessed 11 December 15]. gsmarena. 2014. year by year. [ONLINE]
Available at: http://www.gsmarena.com/blackberry_7230-1009.php. [Accessed 11 December 15].

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