Blackberry Internal Analysis

VRIO framework

Resources	Valuable	Rare	Imitable	Organization	Competitive Advantage
Financial resources	Yes	Yes	No	Highly organized to capture value	Availability of financial resources to run operations and purchase high-quality raw materials
Employees	Yes	Yes	No	Highly organized	Using innovation to produce unique components that meet customer needs
Distribution network	Yes	Yes	No	Highly organized	Ability to reach many customers by ensuring that products are available in different regions
Cost structure	No	Yes	No	Highly organized	Cash flows to sustain operations
Research and development	No	Yes	No	Highly organized	Innovation to keep up with technological changes that influence customer demands
Patents	Yes	Yes	No	Not well organized	Unused competitive advantage

Financial resources, research and development, and a distribution network are helpful in sustaining the firm’s competitive advantage. Financial resources are essential in sustaining operations in the organization. For instance, the company can use financial resources to fund research and development, which is needed to constantly improve the quality of the firm’s products for increased competitive advantage. Financial resources are also needed to sustain distribution networks and enhance their efficiency. According to Zelewski & Peters (2010), the efficiency of distribution networks is dictated by the timely delivery of products and faster order fulfilment. Research and development are needed to keep up with technological advancements. According to Lytras (2012), technological advancements that change customer needs and preferences often disrupt the telecommunications industry. Blackberry needs to research the trends in the telecommunications industry that could affect its products’ demands and develop existing products to align with the trends for improved competitive advantage. A distribution network is helpful in sustaining the firm’s competitive advantage by sustaining the supply chain to ensure that raw materials get to the manufacturing plants on time and customers get timely order deliveries.

Core Competencies

One of the core competencies of Blackberry’s competitive advantage is corporate social responsibility. The company’s stakeholders acknowledge that the company has a defined corporate social responsibility function characterized by active engagement in social responsibility activities and maintaining transparency by informing stakeholders about the company’s activities through the company website and annual reports. The second core competence is a good relationship with suppliers. The company has established standards that all suppliers should meet hence maintaining a good relationship with suppliers. The third competence is innovation. Blackberry has embraced innovation to improve its products and maintain a competitive advantage by taking advantage of new opportunities. The fifth competence is global presence. Blackberry operates globally and has established a strong presence in developed countries, thus increasing its customer base. The company’s global customer base plays a significant role in increasing the company’s profit margin. Blackberry uses its core competencies to increase its competitiveness in the telecommunications industry and enhance its sustainability.

SWOT Analysis

Blackberry’s major strength is its strong distribution network. The company has developed a reliable distribution network ensuring it can reach the most potential customers in different regions. Another strength is reliable suppliers offering high-quality supplies that meet the company’s quality standards. The company can also leverage its reliable supplier network to overcome any bottlenecks in the supply chain. One of the main weaknesses that limit Blackberry’s growth is poor marketing. The company has not invested in a strong marketing strategy, thus limiting awareness of new products to potential customers. The company’s poor marketing strategies are among the factors that contributed to the brand’s reduced reputation because other major brands such as Apple, Samsung, and LG were able to acquire a strong brand presence that increased their brand value (Mittal, 2019). The second weakness is dependence on corporate and government contracts. The highest percentage of Blackberry’s customer base includes corporations and governments because the company’s phones offer good security features. However, most contracts are short-term, thus limiting long-term profit generation from sales made from the contracts.

One of the opportunities that Blackberry could leverage to increase growth is the increasing demand for cloud-based services. People recognize cloud services’ role in storing important data for future reference, thus increasing the demand for cloud-based services. Therefore, Blackberry could offer reliable cloud services to expand its customer base and increase its competitive advantage. Blackberry could also expand its operations into developing countries to increase revenue. The company may choose emerging markets with limited competition and establish a dominant position before major competitors join the market. The second threat is rapid technological development. Companies in the technological field are constantly under pressure to release new services and products. Companies such as Apple set the trend in technological development, thus forcing other companies to advance their products to create a competitive advantage. Blackberry may not keep up with the rapid technological developments, thus limiting its competitive advantage. Another threat is stiff competition. According to Jiang et al. (2020), the technological industry is among the industries with stiff competition due to the domination of major brands such as Samsung, Apple, Microsoft, and Lenovo. The stiff competition arises due to the manufacturing and sale of similar products, thus forcing companies to focus on unique features that can be added to their products to create a competitive advantage. The stiff competition may also require companies to change their operating strategy.

References

Jiang, H., Gao, S., Zhao, S., & Chen, H. (2020). Competition of technology standards in industry 4.0: An innovation ecosystem perspective. Systems Research and Behavioral Science, 37(4), 772-783. https://doi.org/10.1002/sres.2718

Lytras, M. (2012). Trends and effects of technology advancement in the knowledge society. IGI Global.

Mittal, R. (2019). Blackberry Ltd. Marketing Downfall in Mobile Handset Industry. ResearchGate.

Zelewski, S., & Peters, M. L. (2010). Fair distribution of efficiency gains in supply networks from a cooperative game theory point of view. International Journal of Information Systems and Supply Chain Management, 3(2), 1-24. https://doi.org/10.4018/jisscm.2010040101

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Internal Analysis

Internal analysis helps companies understand why differences in firm performance exist even within the same industry. Companies that compete in the same industry face similar external opportunities and threats; therefore, any observable performance difference must be found inside the firm.

Blackberry Internal Analysis

Complete or answer the following:

1. A good place to start with an internal firm analysis is to catalogue the assets a firm has. List the firm’s tangible assets. Then make a separate list of its intangible assets.
2. Now extend beyond the asset base and use the VRIO framework to identify the competitive position held by your firm. Which, if any, of these resources, are helpful in sustaining the firm’s competitive advantage?
3. Identify the core competencies that are at the heart of the firm’s competitive advantage. (Remember, a firm will have only one, or at most a few, core competencies, by definition.) 4. Perform a SWOT analysis for your firm. Remember that strengths and weaknesses (S, W) are internal to the firm, and opportunities and threats (O, T) are external. Prioritize the strategic actions that you would recommend to your firm. Refer to the Implications for Strategic Leaders section on how to conduct a SWOT analysis and provide recommendations building from strategic alternatives.

Blackberry Internal Analysis