All markets are subjected to change, not only due to competition but a variety of uncontrollable forces that affect them as well. This fact alone requires that businesses who intend to last are capable of evolving not only their strategy, but even their product or service.
For instance, BlackBerry once lead the pack for smartphones, primarily focusing on B2B markets. At its peak BlackBerry sold over 50 million units per year. The threats posed by Apple and Google were clear yet BlackBerry simply thought of smartphones with touchscreens as a short term trend, and that people preferred keyboards on their smartphones.
In addition to overlooking this, BlackBerry's strategy failed to recognize the opportunity for smartphones in a B2C market which Apple took by storm with the launch of the iPhone. Now in 2018, BackBerry has 0.0% of the smartphone marketshare and the majority of smartphones in the current market do not have a trace of BlackBerry's product design. Despite having more experience in this industry and holding the majority of the market for a much longer time, BlackBerry's refusual to adapt its model and marketing mix is ultimatley what caused its demise.
Regardless how much a company may doiminate a market, refusing to adapt in a changing environment can lead to devistating consequences
In addition to overlooking this, BlackBerry's strategy failed to recognize the opportunity for smartphones in a B2C market which Apple took by storm with the launch of the iPhone. Now in 2018, BackBerry has 0.0% of the smartphone marketshare and the majority of smartphones in the current market do not have a trace of BlackBerry's product design. Despite having more experience in this industry and holding the majority of the market for a much longer time, BlackBerry's refusual to adapt its model and marketing mix is ultimatley what caused its demise.
Comments
Post a Comment