Research In Motion (BlackBerry)
RIM/BlackBerry serves as the cautionary tale of staying at depleted patches too long.
RIM/BlackBerry serves as the cautionary tale of staying at depleted patches too long. In 2007, BlackBerry dominated enterprise email with eventual peak revenue of $20B (2011) and 50% market share. The signs of patch depletion were clear by 2008: consumer preference shifting to touchscreens, app ecosystems becoming competitive advantage, and enterprise security being commoditized.
The marginal value calculation showed leaving keyboards in 2008 was optimal - the touchscreen market was growing 50% annually while keyboard sales would decline. RIM chose to stay, optimizing per-patch (keyboard market share) not across environment (smartphone evolution). By 2013 revenue fell to $11B, and by 2016 they exited phone manufacturing entirely. Market cap collapsed from $80B (2008) to $2.4B.
Cautionary Notes on Research In Motion (BlackBerry)
- Stayed at depleted keyboard market while touchscreen opportunity grew
- Optimized per-patch instead of across environment
- Market leadership in declining patch worth less than small share in growing patch