Blackberry Case Submission - Blackberry PDF

Preview

Summary

This is the case summary for the required assignment ...

Description

ADMS 1000. Introduction to Business Section E Prof. Indira Somwaru

Andy Tang

The rational decision-making theory involves a strategy to make the right and thorough decision in which a process of several stages and steps is developed. By fulfilling these steps, an optimal solution for the problem would be generated. A rational model of decision making includes five sequential stages such as/including identifying problems and opportunities, choosing the best decision style, developing alternative solutions, choosing the best solution, implementing the solution and evaluating decision outcomes. However, in reality, there are times that we are not able to access clear enough information or process all available solutions to find the best one. This limitation will put us into the situation in which we have to make the decision under risk and uncertainty. By contrast, the non-rational theory of decision-making refers to the term which is called prospect theory. This theory highlights another perspective of the decision making in which decisions can be framed at gain or loss. Daniel Kahneman and Amos Tversky – the researcher of prospect theory, indicate that people tend to accept risky solution if they face a problem could bring potential loss as they want to avoid sure loss;in reverse, if people have to choose among options that might bring them gains, they tend to choose the sure gain one other than larger gain. Overall, the main difference between rational and non-rational decision making is that while the rational method systematically offers the best solution with step by step analysis, the non-rational one depends on how the alternatives are framed. Summary of BlackBerry case: In 1984, Research and Motion – an electronics and computer science company which is the predecessor of Blackberry was founded by Mike Lazaradis and Douglas Fregin.This company introduced their first smartphone model called BlackBerry 5810 in 2002. Two years later, they added the handsetfree functionality on another model which was BlackBerry 6210 and quickly became the leading company in the technology industry. However, since 2011, BlackBerry sales have gone down due to the failure of PlayBook - their first tablet and it resulted in a significant workforce downsize. In 2013, they officially changed the name to Blackberry and return with their new BlackBerry 10 phone. On the other side, the appearance of the first iPhone of Apple in 2007 has made a big change in the phone market at that time. The phone is no longer a device that

ADMS 1000. Introduction to Business Section E Prof. Indira Somwaru

Andy Tang

businesspeople used to call and text, but it is now integrated various features to make it become an entertainment unit. Blackberry didn’t prepare good enough for the change and address the customers’ needs. They first looked down Apple and continued to stick to the old concept. They kept assuming that people still prefer the keyboard and didn’t keep pace with the development of phone applications. Their weakness has dragged their customers away and made their shares price fall to less than $50 in 2009. The BlackBerry problem is much related to Brand Positioning when they didn’t reposition their product and brand identity in the market but keep the old-fashioned approach which is not effective anymore....