After Blackberry announced disastrous Q2 results, news broke that Fairfax’s offer to take the company private had hit funding snags as pension funds were uninterested. This shouldn’t be particularly surprising, but it means that a break-up is now the most likely outcome for the embattled smartphone manufacturer. Let’s use Blackberry as a lens to see what we can learn about declining businesses.
This article, by Sameer Singh, was first published at Tech-Thoughts.
1. Companies cannot attack established ecosystems from behind
The easiest takeaway from Blackberry’s decline is that no single company can compete against an established ecosystem. Blackberry’s decline began once iOS and Android were firmly entrenched as leading mobile ecosystems. Blackberry failed to understand that creating a viable ecosystem around the BB10 operating system was extremely unlikely given the timelines. By the time BB10 was productized, iOS and Android already held dominating positions in the market and developers had no reason to look back.