Blackberry History, Swot, Pest, Market Share and Profitability

5727 Words Jan 16th, 2015 23 Pages
BLACKBERRY

HISTORY

The first BlackBerry device, the 850, was introduced in 1999 as a two-way pager in Munich, Germany. The name BlackBerry was coined by the marketing company Lexicon Branding. The name was chosen due to the resemblance of the keyboard's buttons to that of the drupelets that compose the blackberry fruit.

The original BlackBerry devices, the RIM 850 and 857, used the DataTAC network. In 2003, the more commonly known convergent smart phone BlackBerry was released, which supports push email, mobile telephone, text messaging, Internet faxing, Web browsing and other wireless information services.

BlackBerry gained market share in the mobile industry by concentrating on email. BlackBerry began to offer email
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On August 12, 2013, BlackBerry announced the intention to sell the company due to their increasingly unfavorable financial position and competition in the mobile industry. Largely due to lower than expected sales on the Z10, BlackBerry announced on September 20, 2013 that 4,500 full- and part-time positions (an estimated 40% of its operating staff) have been terminated and its product line has been reduced from six to four models. On September 23, 2013, Fairfax Financial, which owns a 10% equity stake in BlackBerry, made an offer to acquire BlackBerry for $4.7 billion (at $9.00 per share). Following the announcement, BlackBerry announced an acceptance of the offer provisionally but it would continue to seek other offers until November 4, 2013.

On November 4, 2013, BlackBerry replaced Thorsten Heins with new interim CEO John S. Chen, the former CEO of Sybase. On November 8, the BlackBerry board rejected proposals from several technology companies for various BlackBerry assets on grounds that a break-up did not serve the interest of all stakeholders, which include employees, customers and suppliers in addition to shareholders, said the sources, who did not want to be identified as the discussions were confidential. On November 13, 2013, Chen released an open message: "We are committed to reclaiming our success."

In early July 2014, the TechCrunch online publication published an article titled "BlackBerry Is One Of The Hottest Stocks Of

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