How did the BlackBerry, an exotic fruit with a wine-like taste, become associated with terms like business, emails, and internet on the go? How did this cult-like device acquire its fruity name?
The assumption that CEO Mike Lazaridis or someone influential from RIM favored the BlackBerry name due to a personal preference for the fruit is not true. There is a more logical reason behind it. In 2001, RIM enlisted the help of Lexicon Branding to find a suitable name for their newest wireless messaging device. Naturally, the company wanted a name that would emphasize its unique selling point – emails on the go. However, research showed that people tend to associate “email” with work, which can increase stress levels. As a result, Lexicon convinced RIM to choose a name that would evoke a sense of happiness and tranquility instead.
Someone noticed that the small keys on RIM’s wireless devices looked like seeds. They played around with names of fruits with seeds, such as strawberry and melon, before choosing “BlackBerry” because it matched the black color of most RIM devices and sounded pleasant. And that’s how the beloved BlackBerry got its name.
The BlackBerry Bold is a faster and more streamlined device compared to other Blackberries. It offers various connectivity options including Wi-Fi, GPS, and Bluetooth. The trackpad has replaced the trackball for easier navigation. The battery life is extended, and it supports 3G for quicker browsing.
The BlackBerry brand is proud of its “Street Smart” identity, which signifies being informed and adaptable. It understands what matters and what doesn’t, has a clear vision for success, and is confident in its capabilities. Like a personal assistant, BlackBerry provides support, assistance, and resources. Its reliability, approachability, and enjoyable nature contribute to its appeal.
Competition from Apple and Android has impacted the pricing of BlackBerry devices, resulting in lower average selling prices compared to expectations in the fourth quarter of 2009. Instead of reaching the anticipated $320, the average selling price only reached around $311. RIM’s objective is to establish itself in the high-end smart phone market while also capitalizing on growth opportunities in the lower-end mass market.
IMS Research predicts that approximately 420 million smartphones will be sold in 2011, constituting about 28% of the mobile handset market. This number is projected to increase even further by 2016, with estimates exceeding 1 billion smartphones sold, accounting for half of the overall market share. Consequently, there will be significant prospects for growth as an increasing number of individuals transition towards using smartphones.
Roger Entner, senior vice president of research at Nielsen, released a report in March that announced the advent of a new wireless age. In this era, smartphones will take on the primary role of connecting with friends, accessing the internet, and engaging with the world. The driving forces behind this shift are decreasing smartphone prices, advancing features, and an abundance of available applications. Previously reliant on high-end devices for profit, RIM now prioritizes selling more budget-friendly choices such as the Curve or Tour series. Their objective is to cater to individuals purchasing their initial smartphone.
RIM anticipates a continued decrease in the average sale price of its devices, with a greater impact on mass market consumers compared to early adopters. To cater to this consumer segment, RIM offers heavily subsidized devices through wireless operators. For instance, Verizone Wireless has a promotion where customers can buy one BlackBerry device and get another for free. RIM’s strategy aims to provide extra value by offering data services that set it apart from competitors. Furthermore, wireless operators find BlackBerry devices cost-effective due to their efficient use of wireless networks.
BlackBerry faces competition from Android smartphones in the low-end mass market and from iPhones in the premium high-end market. According to Gartner, RIM’s BlackBerry accounted for 11.7% of the global smartphone market in Q2 2011, and its market share has been declining. To overcome these challenges, BlackBerry needs to both retain its current customer base and attract new consumers.
Despite its reputation for strong email connectivity, BlackBerry has struggled to succeed in areas beyond that. Currently, the BlackBerry application store offers over 10,000 apps, but a significant portion of these are themes+wallpapers (24%) or reference+ebooks (17%). In contrast, the iTunes store boasts an impressive 43,000 books. The popularity of BlackBerry App World is notably lower compared to Apple’s App Store. While Apple’s platform receives between 10 and 20 million daily downloads, BlackBerry’s App Store only sees around one million despite having a user base of 20 million. The main issue lies in exposure since downloading App World is optional while the iPhone’s App Store comes preloaded on the device. Additionally, BlackBerry lags behind competitors in crucial aspects like billing, developer marketing, and technical support.
Interestingly, BlackBerry App World received the lowest rating primarily because of technical issues. It is suggested that RIM, the company responsible for BlackBerry, should enhance its developer payouts. On the other hand, Apple only makes 1 percent of its total profits from apps. Rather than solely prioritizing app revenue, Apple mainly utilizes them as a means to market and sell its hardware devices. Consequently, it can allocate its earnings towards supporting developers and promoting popular apps and their creators to entice consumers from different sectors. Additionally, it’s worth noting that both Google and Apple possess their own mobile ad networks.
Initially, consumers must obtain a music subscription service such as Spotify or Rdio since there is no available music app on BlackBerry. Consequently, RIM should resolve this matter by enlarging its credit card database to offer customers additional billing choices. According to Sterne Agee analyst Shaw Wu, RIM possesses various advantages like a substantial asset base and a devoted corporate customer base. This provides carriers with optimism in endorsing an alternative third platform to compete against Google and Apple. BUSINESS BUDIES
Verizon, Sprint, and T-Mobile have all embraced the Android operating system as their flagship device. In contrast, BlackBerry is in desperate need of business partners like Cisco, IBM, or Microsoft. It is crucial for BlackBerry to prioritize building strong relationships with these associates because the growing popularity of Android has made it increasingly challenging for BlackBerry to distribute its products among consumers. Additionally, BlackBerry lacks a dominant carrier that supports its products. These potential partners could pose a threat to other businesses by integrating their product lines with cable services and challenging larger industry players through combining applications with bandwidth to create a secure and consistent solution not tied to any specific carrier. By collaborating with these partners, BlackBerry has the opportunity to become a facilitator for machine-to-machine communication across various applications.
BIBLIOGRAPHY
- Keller, K (2011). Strategic Brand Management. 3rd ed. New Delhi: Dorling Kindersley. p60-64.
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- Cowley, S. (2011). RIM shares drop as sales and profit plunge. Available: http://money. cnn. com/2011/09/16/technology/rimm_earnings/index. htm. Last accessed 13th Oct 2011.
- Epstein, Z. (2011). BlackBerry market share in Q2 may have hit single digits. Available: http://www. bgr. com/2011/09/16/blackberry-market-share-in-q2-may-have-hit-single-digits/. Last accessed 13th Oct 2011.
- Reardon, M. (2010). RIM’s strategy to stay on top in smartphones. Available: http://news. cnet. com/8301-30686_3-20004753-266. html.
