Blackberry BCG (Boston Consulting group) Matrix / growth–share matrix
- The Blackberry Tablet is one of the products that can be classified as Question Mark
- It is still in development, and rumors say that it can compete against developed tablets like iPad or Android Tablet
- There is a high market growth but its market share is low, so the company needs a good strategy to succeed
- It still remains questioned whether the Blackberry Tablet will be worth the investment, especially for R&D
- Products with high market growth and market share
- They need high level of investment, because the market is rapidly changing and more and more products are being introduced
- Strong competition, aggressive pricing, highly price sensitive customers
- Need to stay competitive in technological advancement
- Ex: Smartphone Z10 and Q10
- Ex: Blackberry Bold and Curve
- The development of Blackberry’s devices started with the Bold and Curve
- They are products which are highly profitable, high market share and low market growth
- Has a QWERTY keyboard and display, allows users to communicate via BBM
- Became market leader due to its simplicity, BBM feature, battery life
- Products which have low market share and growth potential
- The old blackberry devices like the curve are losing its potential, it is no longer a cash cow and generates little income
- Business can face cash flow problems, which is what the company experienced during its decline in 2013.
Product Life Cycle
This graph shows the product life cycle curve or how the life span of certain products in the company. The products goes through five stages of growth with development, introduction, growth, maturity and decline.
The time where a product concept is developed and tested before being introduced to the market. Usually a lot of capital goes into the development stage for developing the product.
During this stage the brands will introduce the product by advertising and other methods to raise awareness of the new product. Usually companies will price their products high during this stage to quickly earn money that is spent for research and development stage. In the example above, the Blackberry Z30 is blackberry’s new flagship product which is the most expensive product being sold? The company is also building up hype for the product by advertising and teasing the product in this phase.
When the sales of a product start growing exponentially then the product will enter this stage. In this stage the company will want to try to increase the sales of the products so that it can be the leader of the market share. In this example, Blackberry might add more features (updating the system and the product) and do promotions with pricing or bonuses so that the product can gain more market share.
In this stage, the certain product will reach its highest point where the sales are high and the market share is high. The company will then focus on getting the product to maintain its focus on its quality and reputation so that it keeps its current market share. In the example of Blackberry, the Curve 9xxx series and Bold 9xxx series is the current most popular and most used product from the company that is used and purchased in the market. People would be familiar with these series as these phones are the most popular and most successful ones in that time period.
This it is the point where the life of the product is coming to an end where the sales start to fall for a product from the company. Even though it is possible to extend the life of the product by finding new markets or repositioning the brand or by updating it, at the end the product will eventually need to be discontinued if it is no longer profitable. For blackberry, their Blackberry Storm and Torch series used to be very popular in the years where it was released. However, after trying to reboot the declining product by releasing newer versions of them, people started losing interest and the product is no longer profitable and therefore discontinued.