REHABILITATION AND BRAND EXTENSION STRATEGY
ANTONIOS BOUGIOURIS
HISTORIC COMPANY SNAPSHOT
SWOT ANALYSIS STRENGTHS • Enterprise niche provides a favourable competitive environment • Strong focus on product design, engineering and R&D • Diversified geographic presence
WEAKNESSES • Delayed product launches negatively impact business • Declining financial performance • Lack of Agility (Red tape/ beaurocracy) • Lack of Identity, focus, vision
OPPORTUNITIES • Partnership with Foxconn to provide strong volume growth • Positive outlook for smartphone & tablet markets • Robust growth in enterprise mobility management market to drive sales
THREATS • Declining average selling prices strains margins • Intense competition • Technological changes & short product life cycles • BYOD may decline BB’s share in the enterprise solutions market
PROBLEM STATEMENT AND FACTORS FOR DECLINE Blackberry has lost more than $70 billion of its value since peak market capitalization in 2008. Intense Competition • Stripped of Innovation Attribute • Much narrower product mix compared to Apple, Samsung, and LG. • Delays and software bugs fail to meet consumer expectations • Poorly executed marketing campaigns
Failure to adapt to consumer behaviour • In past, functional attributes more relevant, hence B2B appeal • Trends in social media and fixed-mobile convergence • Products have lost touch with the needs of consumers. • In 2014, phones/technology signal coolness and innovation à BB’s lost attributes
Lost Agility, Vision, Leadership, and Differentiator • Silo-ed departments • Red tape/beaurocracy • Complacent leadership • Overworked staff – too many non core projects
CURRENT TARGET SEGMENTS Core Segment B2B • Corporate professionals • Governments • Exclusive products/ services • Older Demographic
Expanded To… B2C • Mass market • Younger Demographic
B2B • Corporate professionals • Governments
Current Segment Return to core • Governments • Financial services • Telecommunication
CURRENT POSITIONING Stylish/Fun ¢Apple ¢Samsung ¢LG ¢Sony ¢Huawei
Durability Low
Durability High
¢ZTE
¢Blackberry Functional/ Professional
FROM ONLINE SURVEY, CONSUMERS SAID BLACKBERRY WAS… Obama Complicated Terminology
Struggling
Not Innovative Out-dated
Corporate
Obsolete Business
Old
Secure BBM Bankrupt
Blackberry
Crackberry
Reliable Keyboard
Multi functional
Passport
Not Apple
B10 Canadian
Can’t Shut Complicated Down
Unreliable
Freezes
CURRENT BRAND PERSONALITY
§ § § § § § §
Professional Well-connected Traditional Reliable Trustworthy Safe Boring
HISTORICAL BRAND ATTRIBUTES Efficiency / Reliability Attractive to B2B clients BBM works around the Globe
Innovation Strong R&D focus Compatibility across platforms (Android apps)
Experts in Communication Multifunctional Multitasking Ability
Can still be associated with the brand in the minds of consumers
Cannot be associated with the brand anymore
Security/ Safety Used by governments, politicians (Obama), businessmen (Google) Blackberry does not get hacked QNX system
Can still be associated with the brand in the minds of consumers
REHABILITATING THE BRAND
NEW BRAND PERSONALITY § § § § § § § §
Sophisticated Stylish Alert In Control Well-connected Confident Reliable Trustworthy
NEW BRAND ATTRIBUTES Shift From Functional to More Emotional Integrated
Strong R&D focus Compatibility across platforms BBM works around the Globe Multifunctional/Multitasking Synergy across multi products – Cross and Up Selling ability Both functional and emotional Relevant to both B2C & B2B
Sophisticated
Aspirational Attribute Self-expression Social status Self-realization Functional and emotional Appeals to Professionals and Consumers Relevant to both B2C & B2B
Protected
Speaks to people who have something/someone to care about Instinctual Secure Ă Does not get hacked Functional and emotional Good battery & screen Trustworthy/Reliable Relevant to both B2C & B2B
NEW POSITIONING STATEMENT BlackBerry has the most sophisticated products and protects what’s most important to you due to its integrated technology and cutting edge design.
NEW TARGET SEGMENT § Older (25+) § Disposable income § Sophisticated/Classy § Aspirational § Care about protection § Professional § Interested in design § Crave interconnectedness § Seek convenience/easy of use
(internet of things)
NEW POSITIONING COORDINATES: B2C DEVICES Fun/Cool ¢Apple ¢Samsung ¢LG Endurance/ Durability Low
¢Sony ¢Huawei ¢ZTE
¢Blackberry
¢
Secure/Business
Endurance/ Durability High
NEW LOGO: SYMBOL OF CHANGE
B
B
BLACKBERRY
§ § § § § § § §
Thinner Stylish Modern Clean Sophisticated Luxury Potential Hologram Looks like inks/chain, infinite symbol or window
According to Rebrand.com, rebranding costs 20X the cost of a new logo. New logo: $2.5 M Rebrand: $50 M
EXTENDING THE BRAND
DIRECTIONS FOR EXTENSION § Can credibly leverage our integrative/crossfunctional and sophisticated system into categories that require protection/security § BBHealth (Out-ofCategory Extension) § BBHome (Out-ofCategory Extension) § BBDevices that… § BBConnect Everything
Attributes/ Industry Info
Healthcare
Home Security
Sophisticated
✔
✔
Integrated
✔
✔
Protected
✔
✔
Market Growth
27.7% CAGR
9.1% CAGR
Market Size
$16.4 B by 2018
$34.46 B by 2017
Competitors
Microsoft, IBM, Corepoint, Oracle, Orion Health, InterSystems, Siemens, Cerner, Interfaceware
ADT, AT&T, Apple, Vivint, Protection 1, Monitronics Intern., Local Players
Competition
Low, Growing, Fragmented
High, Mature, Highly Fragmented
Sources: Global Mobile Phone Industry (Apr 2014), MarketLine, “ Home Security” Markets and Markets, BioTech for Wall Street
BB HEALTH: HUGE B2B OPPORTUNITY Pagers are still the official means of communication in American hospitals § North American Health Care Market comprises of: § 5,720 registered US hospitals § 1.2M registered physicians in the US § 1,000 Canadian hospitals § 770,000 physicians in Canada § 90% of hospitals in the US are giving pagers to their employees (staff physicians and medical trainees) to communicate
Security is a problem in the Healthcare system in North America Data breaches put patients at risk More than 90% of US hospitals experienced a data breach in 2012 § 75% of hospitals are not sufficiently securing devices with patient data § Dealing with these breaches are expensive and jeopardize hospital reputations and physician’s careers § §
Unofficially, physicians are using their personal smartphones on a daily basis 8/10 physicians use their personal smartphones on a daily basis which raise confidentiality issues Mobile Device Uses
Smartphones
Tablets
Access to drug information (dosage, side effects, etc.)
72%
55%
Communication with nurses/staff
44%
20%
Access to medical research
43%
Access to evidence-based clinical reference tools
42%
Communication with patients
17%
Access to medical records and other patient data
17%
Access to information for reimbursement
12%
Other
9% 13%
63% 50%
33% 43% 24%
Question: in which of the following ways do you use your mobile devices within your practice?
BBHOME: ORGANIC B2C EXTENSION Integrated Home Security System § § § § §
Premium Smartphone receiver Instant Video Surveillance Feed Quick Response to Police High Frequency/Sonic Technology Alarm
Note: Visual Representation Only