Failure to Forecast
Forecasting and budgeting are important components of public financial management as they impact the operations of public sector agencies or organizations. Forecasting also has a significant impact on public service delivery as it relates to realistically possible futures. Public service agencies and business organizations have experienced challenges brought by poor forecasting or the failure to forecast. The failure to forecast has essentially implied that these organizations failed to plan and prepare for change. There have been several cases and examples of companies that failed to forecast and prepare for change. This paper examines the case of one company that failed to forecast and its impact. The evaluation also includes a discussion regarding forecasting methods that could have assisted the company to thwart the negative situation encountered.
Adversity faced by Blackberry
According to McIntyre, Hess & Weigley (2013), one of the companies that have experienced challenges brought by a failure to forecast is Blackberry. The company, formerly known as Research in Motion, was founded by Mike Lazaridis and Jim Balsillie in 1984. Under the co-leadership of the two founders, Blackberry pioneered the smartphone revolution and become the giant of the smartphone business (Silcoff, Mcnish & Ladurantaye, 2013). As a pioneer in the smartphone market, success nearly came naturally for Blackberry until 2008. The smartphone market experienced tremendous growth and profitability resulting in the entrants of competitors like Apple Inc.
The adversity faced by Blackberry during this period is competition from consumer-facing rivals. Apple’s iPhone in early 2007 represented a major competition for Blackberry in an increasingly competitive, growing smartphone market. As competition increased in this market, Blackberry needed to develop strategies and business approaches that enhanced its competitiveness and maintained its position as a market leader. In addition, the company faced an era of strategic confusion during the post-iPhone period. This period was characterized by a shift by smartphone users as they seemingly preferred more usage in different packages. Smartphone users increasingly shifted their focus to software applications instead of using devices that were based solely on hardware. Apple and Android systems responded to this shift by using newer software platforms and standards that facilitated the development of friendlier user interfaces (Silcoff, Mcnish & Ladurantaye, 2013). This proved very difficult for Blackberry, which remained relatively stuck in its conventional model. As a result, the firm experienced intense competition from consumer-facing rivals, which affected its business model, strategies, and operations.
Impact of Failing to Plan for Change
Blackberry was a market leader in the smartphone industry as it transformed business in this sector. While the firm experienced tremendous profitability and success in the early years of its operations, it experienced intense competition from rivals who utilized new software platforms and standards. The company failed to plan for change at a time when...…business strategies and product development initiatives at the company. For instance, using the trend analysis method, the firm would have identified and prepared from the shift by smartphone users. This would have played a critical role in maintaining its relevance and profitability in this market.
Recommendations
Based on the insights from market research and trend analyses, Blackberry could have avoided the negative situation through several recommendations. First, the firm should have invested in understanding the evolving smartphone industry. Through this, Blackberry would have been better positioned to understand the needs and interests of present and potential customers in this market. Secondly, the company should have adopted a forward-thinking approach to product development initiatives. Forward-thinking would have ensured the firm is adequately prepared for realistic possible futures in the smartphone industry. Third, Blackberry should have adopted business models and strategies that are aligned with customers’ needs.
In conclusion, forecasting is an important component in the long-term successful operations of organizations in the private and public sectors. Blackberry is an example of a company that has experienced challenges due to failing to plan for change or forecast. While it was a market leader in the smartphone industry, Blackberry’s fortunes dwindled due to its failure to plan for the future and anticipated changes. The company could have benefited from using market research analysis and trend analysis to prepare for realistically possible futures in the rapidly evolving smartphone industry.…
References
Adhikary, S. (n.d.). Techniques and Methods of Business Forecasting. Retrieved August 3, 2020, from https://www.economicsdiscussion.net/business-forecasting/techniques-and-methods-of-business-forecasting/31478#:~:text=(i)%20Business%20Barometers%20Method%20(,Trend%20Projection%20ii.
Hicks, J. (2012, February 21). Research, No Motion: How Blackberry CEOs Lost An Empire. Retrieved August 3, 2020, from https://www.theverge.com/2012/2/21/2789676/rim-blackberry-mike-lazaridis-jim-balsillie-lost-empire
McIntyre, D.A., Hess, A.E.M. & Weigley, S. (2013, February 10). Eight Founders Who Ruined Their Companies. USA Today. Retrieved August 3, 2020, from https://www.usatoday.com/story/money/business/2013/02/09/founders-ruin-companies/1905921/
Silcoff, S., Mcnish, J. & Ladurantaye, S. (2013, September 27). How Blackberry Blew It: The Inside Story. The Globe and Mail. Retrieved August 3, 2020, from https://www.theglobeandmail.com/report-on-business/the-inside-story-of-why-blackberry-is-failing/article14563602/
Blackberry Playbook: Critical Evaluation Blackberry Background Market value Main products Operations Target Customers Features of target market Product Value Product core customer value Actual product features Augmented features Nature of Product Value preposition Product Life Cycle Product Life Cycle PLC Stage of Blackberry Playbook Sustainable Life Cycle Assessment of RIM Competitors Analysis SWOT Analysis of Blackberry Playbook Main product competitors Competitors of the Product. Type of competition Pricing Strategy Product Demand Distribution Promotion Mix Advertisement done The business level strategies are analyzed to interpret the current market position of Blackberry Playbook. There are multiple competitors of the
Blackberry Reflecting on the SWOT analysis of Blackberry, we can see that the company has a strong market share in the smartphone industry because of its strengths. The product is trending socially among young people and business people, which makes the Blackberry a desirable brand within the industry. The fact that it is known as a tool of professionals is one of the main attractions of the Blackberry, because users perceive
Blackberry's direct marketing strategy should focus on its existing customers. There are a few reasons for this. Naseri and Elliott (2011) have showed that social connectedness is one of the most important variables for success in direct marketing. Blackberry's existing customers interact with one another easily through the proprietary messaging platform. It is easy, therefore, not only for Blackberry to interact with its customers directly through multiple platforms, but for
Essentially, a cellular system involves the use of a series of sending and receiving stations placed throughout a region so that a telephone use can move from one place to another as the signal to and from the handheld telephone shifts seamlessly from one cell to another, according to where the individual is traveling. Other handheld devices, such as the PDA, make use of this same system, which can
Black Berry Eating Galway Kinnell's poem "Blackberry Eating" is a deeply metaphorical piece that can be taken on several levels. On the surface, it is obviously a poem about eating blackberries and the way in which blackberries are like words which cannot be spoken. However, the subtle subtext of a metaphor within a metaphor runs throughout this poem, which carries with it a sense of taboo and mystery attached to blackberry
Market segmentation iPhone and blackberry market segmentation According to the Business Directory (2012), market segmentation is the process of defining and subdividing a vast market that is mostly homogeneous into segments that possess similarities in needs, demands, wants as well as characteristics. It is actually the opposite of a general market mix since it narrows the market mix to the specific targets. The purpose of the segmentation is to help match
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now