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The Rise and Fall of BlackBerry

By: Deborah Himsel, Andrew C. Inkpen

The launch of BlackBerry by Research in Motion (RIM) in 1999 laid the foundation for the development of smartphones. The next decade was a period of spectacular growth for RIM, making its two co-CEOs…

  • Length: 10 page(s)
  • Publication Date: Jun 1, 2017
  • Discipline: Strategy
  • Product #: TB0485-PDF-ENG

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The launch of BlackBerry by Research in Motion (RIM) in 1999 laid the foundation for the development of smartphones. The next decade was a period of spectacular growth for RIM, making its two co-CEOs billionaires. At the end of 2007 the company had a market capitalization of more than $60 billion. Sales peaked at almost $20 billion in 2011. In 2016, sales were $2.2 billion and the company had lost money for four straight years. With the market capitalization having fallen to $4 billion by August 2016, the survival of BlackBerry (the company changed its name from RIM to BlackBerry) was uncertain.

Learning Objectives

This case can be used for several teaching purposes. The case can be used to illustrate the process of innovation and the linkages between strategy, competitive advantage, and innovation. BlackBerry created a unique product and for a few years occupied a competitive position with no rivals. The company established a competitive advantage based on product differentiation and saw BlackBerry become one of the most recognizable and valuable global brands. Unfortunately, the initial success could not be sustained once competitors, and particularly Apple, entered the smartphone market. After many attempts to change its strategy, BlackBerry eventually was forced to exit the hardware market. In a marketing class the case could be used to illustrate the challenges of being a pioneer versus a follower. The case can also be used to focus on leadership and building a culture of adaptability and change, especially in a successful organization. Initially the yin and yang of Lazaridis and Balsillie's complementary approaches led to innovation and growth. Rapid growth, distraction from lawsuits and increased competition, highlighted a fundamental lack of strategy, vision, reactive leadership and hierarchical, undisciplined, siloed, arrogant organization culture. The case can also highlight some of the fundamental leadership differences between Lazaradis/Balsillie and Steve Jobs, especially as it relates to vision, customer focus and simplicity of message.

Details

Pub Date:

Jun 1, 2017

Discipline:

Strategy

Subjects:

Source:

Thunderbird School of Global Management

Product #:

TB0485-PDF-ENG

Length:

10 page(s)