Critical Analysis Paper: BlackBerry Essay

According to the article blackberry bush Posts Loss as Phones Go Unsold, blackberry performs a poor performance. Business has a quarterly freeing in 2013 for $965 million. The receipts had drop 45% that trim back to $1.57 billion from $2.86 billion comp bes with a year earlier. BlackBerry lost $248 million, or 47 cents a share, and analysts forecast 49 cents a share loss for the quarter ended August 31. The net loss is $235 million which excluding inventorying charge and restructuring charges in the latest quarter. The cash position in addition pig to $2.6 billion from $3.1 billion at quarter-end. Smartphone maker report a knock-down(a) operating loss of nearly $1 billion charge on inventory of unsold phones. Fairfax Financial Holdings to take the confederacy private for to the highest degree $4.7 billion, or $9 a share. As a former vigorous king, BlackBerry faces to exit the handset business. This report will conduct a situation analysis of potential causes of declining gross revenue and take in of Black Berry. And also would identify internal company and external environment for the poor performance. front more analytical writingA particular reason of the sales declining is BlackBerry ratnot satisfy enough to the grocery and product demand for customers. gross sales declining imply to revenues declining. BlackBerry recognized most phones revenue is from the older models, which means the new phones are not much coax to customers. Ian Austen (2013) noted that BlackBerry could soon be leaving the business of reservation phonesleaving fewer options for a vocal minority soundless connected to phones with its once popular physical keyboard. (para. 1) BlackBerry usually produces the keyboard models, but with stacks pursuit on phone, most smartphone users prefer to use touch-screen models kinda of the physical keyboards. Keyboard was one of a special characteristic of BlackBerry, eventually, that become an hindrance for its evolution.The reaso n of revenue declining of BlackBerry is it has a set down market share. BlackBerry has not change their product style and business strategy go customers are seeking the new products constantly, market share wouldbe affect and would cause revenue going down. Joseph Palenchar (2013) noted that the old days sawing machine BlackBerrys market share in global smartphone shipments hint in 2009 at 20% and fall to 5% in 2012, gull the companys lowest level since 2003. (para. 3) Increase the chances that BlackBerry can regain some of its lost market share during the make-or-break year of 2013 (para. 9) tax income is declining because the market is becoming smaller. With Apple, Samsungs products are growing deeply in customers impression, BlackBerry is standing in the behind position compare with those devil brands. BlackBerry is not enough strong to attract those Apple and Samsungs customers to choose its products even they produce the new products.A poor financial performance reflec ts BlackBerry accompany is going down. In the article of Company Overview, the causation stated a SWOT analysis of BlackBerry. In the weaknesses of company, the author described the revenues decreased primarily due to abase shipment volumes and lower average selling prices of hardware products. The companys revenues chastised from $19,907 million in FY2011 to $11,073 million in FY 2013. (p.6) Continuous decline impacts the companys profits and margins. In 2013, RIM recorded the operating loss of $1,235 million compared with unconscious process profit of $1,497 million and $4,636 million in 2012 and 2011. It also suffers a decline in the cash position which from $4,009 million in 2011 to $2,303 in 2013.Substitutes and combative also are the factors that affect BlackBerry suffer in this situation. The lower revenues will decrease market share so that to increase the competition. BlackBerry lack of innovation however, its competitors of smartphone company such as Apple, Samsung, HTC, Microsoft, etc. are rapidly evolving. Most of them have larger customer bases, greater financial, sales and distribution than BlackBerry. As consumers, under an available circumstance of selecting, they prefer a product with innovation, creative, and satisfaction. Competitive pressure impact the companys produce and market share.Fairfax Financial Holdings is going to take the company private, but relieve wont solve the companys problems. BlackBerry still insist their employees of the same smartphones and tablets that use at home. It is losing in theconsumer arena. Therefore, even though investors take it private, BlackBerrys revenue still would not be changed because it did not change its operation of business.The most primary reason for the companys poor performance is BlackBerry lack of innovation. Because of BlackBerry did not change its strategy in order to satisfy customers demand for the smartphone, the product sales and revenues are going down. Also, the lower market s hare and the higher competition would impact BlackBerrys profit and margin.BibliographyConnors, W. (2013). Blackberry posts loss as phones go unsold. Austen, I. (2013). Blackberrys emerging in doubt, keyboard lovers bemoan their own. Palenchar, J. (2013). Analysts Blackberry facing tough battle. (2013). Company overview.