Tag Archives: telecommunications

R.I.P. – Blackberry Classic

Blackberry

Eventually, all things must come to an end. While it’s tough to see a favorite product discontinued, sometimes the market has moved on, but the product didn’t keep up. This is the case for Canadian-based company, BlackBerry. The company has announced that it will stop producing the BlackBerry Classic, one of the few phones with a plastic keyboard and track ball.

The BlackBerry phones long dominated the early smartphone market and were the device of choice for business people and leaders (remember when Pres. Obama had to give up his BlackBerry?). The BlackBerry Classic was introduced in 2014 to give users a physical keyboard instead of touchscreen, hoping to build market share among users who like pounding on a keyboard. But, no product lasts forever, particularly in technology, and Apple and Samsung have quickly moved to take over dominant positions in the smart phone market.

While BlackBerry does not disclose the sales volume of individual products, the company’s phone business has not been profitable and is declining.

Group Activities and Discussion Questions:

  1. Discuss the evolution of smart phones.
  2. For those who are not familiar with the product, here is a video review: https://youtu.be/SQhvc4Nxo_U
  3. Discuss BlackBerry phones and show the Web site: http://us.blackberry.com/home.html
  4. Next, discuss BlackBerry’s announcement to discontinue the Classic. Blog post: http://blogs.blackberry.com/2016/07/change-is-only-natural-a-classic-model-makes-way/?ClickID=c7w7iqxweizvq7xwzqeefxl4fnvqvzaezksxek
  5. Why is the product being discontinued?
  6. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  7. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  8. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Manufacturing Business Technology, New York Times

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BlackBerry Has a Brand New Phone

Blackberry

Apple isn’t the only company with a new phone. BlackBerry released its new Passport phone this month as well. Competing directly with Apple and Samsung, the new phone has a square screen and a physical keyboard that doubles as a touch-sensitive swipe pad. But while Apple and Samsung phones are geared towards the personal market and video content, the new Passport phone is focused on work productivity.

BlackBerry’s target users appear to be the “power professionals” – people who are well-educated, well-paid, and employed in industries such as health care and finance which require more secure communications. The new phone is also being offered at a price lower than iPhone 6; Passport retails for $599 without a mobile plan compared to $649 for iPhone 6.

The question is whether BlackBerry can gain market share against its entrenched rivals.

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Show BlackBerry’s Web site and products: http://us.blackberry.com/
  3. For BlackBerry’s Passport phone, what is the target market? How does this compare to the target market of Apple and Samsung?
  4. Divide students into teams and have each team develop a profile of a target market for Passport. Include demographics, psychographics, behaviors, values, attitudes, etc.
  5. What are the key differences in marketing to companies vs. individual consumers?
  6. Based on the target market profile, what makes this product unique for these customers?

Source: Bloomberg News, Wall Street Journal, other news sources

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Can you buy an iPhone for $199?

iphone1 iphone2

Apple’s iPhone 6 has been a bit hit, selling roughly 10 million units in the first few weeks after launch. But do you really think the new iPhone 6 can be bought for $199? Really?

If you have been watching the new iPhone ads, the $199 does sound encouraging – after all, Apple stated the price was “from $199.” However, that’s not quite the total price; the base price for the new product is actually $649 or more. But stating it that way doesn’t really encourage consumers to go out and buy a new phone.

In reality, upgrading an iPhone every two years using the 24-month service contract will not cost $199. The $199 is a down payment on an iPhone 6 with 16 GB of storage. The down payment rises to $299 for the 64 GB model, and $399 for the 128 GB phone.

The real price ranges from $650 – $920 (depending on carrier) for the 16 GB model, and up to $1,030 for the 128 GB model. Why? Every carrier offers the option to buy or finance by dividing the full price into installments over a two-year period, adding at least $25 to the monthly fee, and sometimes more. To find out, an educated consumer needs to read the fine print and then decide on the value based on the real cost over time.

Group Activities and Discussion Questions:

  1. Start by showing the new iPhone on apple.com. Make sure to show the price options and ask students their impression of the pricing strategy.
  2. Divide students into groups. Have each group research how much the phone would cost when buying both (1) outright, and (2) on a monthly payment plan.
  3. Do this for each of the iPhone carriers: AT&T, Sprint, Verizon, and T-Mobile.
  4. What other additional charges are there?
  5. Write the prices on the board and debrief the exercise.
  6. Pricing chart can be found at http://www.zdnet.com/how-much-does-an-iphone-6-really-cost-hint-its-way-more-than-199-7000033801/

Source: New York Times, ZDNet, Wall Street Journal, other news sources

 

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