8 - its a case about the financial sector of business PDF

Preview

Summary

its a case about the financial sector of business...

Description

Describe the financial background of a former successful business organization.

BlackBerry Limited [BB] is a renowned technological company, formerly Research in Motion, designs and markets wireless handsets, software, and services. Its primary revenue drivers are the sale of handsets to customers for personal and corporate use, a variety of software products used in embedded systems and for mobile device management, and service access fees from wireless carriers associated with securing and processing wireless data traffic. BlackBerry also owns QNX, a leader in software used in automotive infotainment systems."(Stockhouse) It was one of the top competitors in the smartphone production company. But the decreasing market and reduction in revenues has resulted its stock price to drop at 10.69 as of January 25. It can be said that it has increased from $9.52(Jan, 2) to $10.69 just in a month but that is not a fact to be considered, because the price of the stock was $17.27 on March, 3, 2018. BlackBerry’s stock is down by about 11% year to date and has remained almost flat since 2013. This drop of stock is due to the low sales. The company’s revenue was $932million in 2018 whereas the revenue of 2014 was $11billion (Forbes). In just 4 years the company lost more than $10billions in revenues. The company’s stock has been continuously dropping over time. Like the company had stock worth $14.62 at the end of the third quadrant but at the end of the fourth quadrant it was just $9.16. In just 3 months the price dropped by $5.46. The reasons for the failure of BlackBerry Limited is the fast growing technological industry. The company could not cope up with the rapid change in technology, price, demand and specification. They maintained quality in a market which demanded qualification in a price as low as possible. They not only failed to give what the people wanted but also maintained high price. And people shifted to new products with new features in a reasonable price. For now, with some changes in attitude and business policy BlackBerry still can thrust out and see its stock price rise again. For that they need to produce new products or services that is ahead of the time and not the ones that resulted in such declination of its stock price.

Works Cited:

https://www.forbes.com/sites/greatspeculations/2018/09/05/why-blackberrys-stock-has-been-und erperforming/#2d574ef96d98 http://stockhouse.com/companies/bullboard?symbol=t.bb...