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Competing with a Mac: How BlackBerry blew it, the inside story – The Globe and Mail


http://www.asymco.com/2013/10/01/competing-with-a-mac/#!

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The whole article is worth reading, detailing as it does the decision process inside BlackBerry during the painful disruption of its core business.

What struck me most however was how similar their decisions were to those of Nokia at about the same time. Consider:

  • The engineering priorities placed on optimization around constrained hardware. Although engineers knew how to build the right products, the business priorities caused them to be deployed in the wrong direction.
  • The delays these misdirected efforts caused. Mobile phones have narrow windows of opportunity but long lead times. A strategic mistake is very costly and most probably impossible to remedy. In the case of BlackBerry, buying QNX came too late while for Nokia the deprecation of Symbian was catastrophically managed.
  • The feedback loop from network operators which shut down any initiatives for improved user experiences. Your best customers provide all the wrong information when the market is being disrupted. Ignoring them is impossible while complying is a strategic mistake.
  • The demand from network operators to develop “killers” to competing platform-based products[1] and the subsequent “jumping at the opportunity”.
  • Listening to large buyers at the expense of users. While BlackBerry was guided to omit consumer features from its enterprise buyers, Nokia never secured enterprise buyers of any significance[2]. Nevertheless it created the “E series” business-friendly phones which suppressed features like cameras and music.
  • The celebrity sponsorships and wasted promotional efforts in the face of structural failures.  This is manifested today by HTC as well.

The whole article is here: http://www.theglobeandmail.com/report-on-business/the-inside-story-of-why-blackberry-is-failing/article14563602/?page=all

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Apple disrupted the market, and the main players to realize it were Google and Samsung.

Apple and Samsung took over the high end, and Google commoditized everything else.

The six years since iPhone entered the market have gone by really fast.

Microsoft, Nokia, and Blackberry were caught off guard. The very definition of being disrupted.

Microsoft is used to watching a market pass it by and then slowly catch up in a war of attrition.

Unlike Nokia and Blackberry, Microsoft has the Windows and Office monopolies to fund the slow war.

The big thing that surprised me is that Microsoft didn't buy Blackberry. Maybe that's still coming.

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