Globalization & Strategic Planning

Globalization & Strategic Planning
With the current wave of globalization, environmental uncertainty has been surfaced for a significant range of organizations, among them being Blackberry. As more and more markets adopt globalization, the number of factors that organizations are necessitated to consider in any particular decision has not only become huge but also far much complex. Uncertainty of the environment is considered to be a threat to strategic management owing to the fact that it tends to hamper an organization`s ability to come up with long-range plans, as well as, make strategic decisions, which necessitate strategic decisions in order to maintain an organization in equilibrium with the external environment. This research will involve blackberry and its approach towards dealing with the much competitive global world.
Blackberry`s Current Strategic Situation
According to Gerry and Scholes (2005), an organization`s strategic position is largely concerned with the impact that the external environment, the internal resources, as well as, competencies, in addition to the stakeholder`s expectations and influence has on the strategy adopted. In this context, the strategic position of an organization is better determined by conducting a scan of the environment, both internal and external. To be precise, a SWOT analysis is necessary in performing this scan. As cited by Henry (2008, p. 117). SWOT Analysis denotes strength, weaknesses, opportunities, as well as, threats. The author clarifies that both strengths and weaknesses relates the internal environment while the opportunities and threats relate the external environment over where control is out of reach of an organization (Henry, 2008, p. 117). With such basics, the current strategic situation of Blackberry can be determined.
Strengths
Among the fundamental strengths that the company can boost of is the high innovation exhibited by the company. In an article by Miller (2012) that appeared in the Bloomberg magazine, it was reported that the Chief Executive officer of the company had unveiled a prototype of the new Blackberry phone. The phone has the modern phone technology integrated. It is different from the traditional Berry phones since, rather than the usual keyboard, it has a virtual one. Further, as it is reported by Miller (2012), the chief executive officer I indicated that they were going a BlackBerry 10, which had a unique operating system that would be capable of running for ten years without any challenge. This indicates the innovativeness characterizing the company.
Weaknesses
As at 2012, the market share of Blackberry stood at 8.4%. Three years ago, it was being reported that the market share was at 37%. This indicates a decrease in market share and this is indeed a critical weakness for the company.
Opportunities
In a report by Dano (2012), it was indicated that the company was undertaking a comprehensive review of its strategic opportunities, which included partnerships and joint ventures. The company has established partnerships with other companies and this has played a key role in building new products for the company and also licensing its blackberry 10nplatform to other manufacturers. In the issue of licensing, it was reported that a significant range of companies were still looking at ways in which they could participate in the phenomenal growth of the mobile community. Therefore, given this, partnerships will help the company grow to further heights.
Threats
In a report by Miller (2008), it is indicated that the shares of the company in the stock market are in a falling trend. This is a clear evidence that the company is losing its ground in the market and this is particularly detrimental given the rival companies are on continuous improvements.
Further, companies such as Apple present intense threats to the company. Apple is engaging itself in high integrative efforts to ensure that it becomes the market leader. If Blackberry lags behind, there is a possibility that the other companies, which do not pose critical threats, will overtake the company just like Apple did and this will further push the market share of the company down. To ensure that the company remains in the game given the highly competitive landscape, the Chief Executive Officer together with the inner circle has established several strategies. Some of these strategies include in sourcing strategy and integrative strategy.
Financial strategy
The company has realized the fact that conducting a business in another foreign country necessitates a financial strategy. The company usually engages in financial transactions oversees usually incur transaction exposure, as well as, appreciation and depreciation of the foreign country that Blackberry engages its business in. The fluctuations of the currency rates can have a great deal of impacts on the bottom line of the company. As such, the company includes a financial risk management in its financial investment strategy.
This form of strategy usually minimizes the risks associated with currency exchange by way of negotiating a forward exchange contract for each and every transactions of the organization. The company usually uses these contracts with a single aim of delivering currency at the agreed upon negotiated rate of exchange. The company mostly use hedge contracts in order to cover significant and considerable periods of time.
This particular strategy is very essential in curbing or helping the company cope up with competition. Not many rival companies have adopted this sort of a strategy. Therefore, The Company is able to manage the risks associated with financial investment, which are likely to hamper its overall success and its long term growth. Several competing and rival companies have succumbed for not adopting such a strategy. Using this strategy ensures that the company is much higher in terms of its readiness to financial risks in relation to others. This indeed is the key reason why the company is performing exemplary in its current operations.
In sourcing strategy
This strategy usually takes place when a company operating globally moves a certain business practice to a foreign country. Rather than contracting with a different company from a foreign country, Blackberry maintains the business activity within it. Blackberry usually uses established subsidiaries located in another country and also sets up subsidiary company in a foreign country. This is particularly essential to Blackberry as a number of advantages, especially taking competition into consideration.
With the growing competition from other rival companies, this particular strategy ensures that the company is well versed with competition. The company is able to diversify its resources and this ensures that it tackles competition in each and every sphere. Since it has subsidiaries in other countries, the company is able to meet and handle competition from those countries in which the subsidiaries are located. With each subsidiary handling competition it follows that the overall, the global competition is harnessed.
It is worthwhile to assert that, indeed, RIM will remain in the game despite the extended competition. Foremost, with the current innovation exhibited by the company, there is likelihood that it continues introducing high edge products. This is particularly so due to the integrative technology exhibited by the organization and which other rival companies does not entail. Though Apple is still a threat, the company is likely to pose a huge competitive force to Apple, which outdo those from the competitors. For instance, it is reported by Miller (2012) that the Chief Executive Officer will announce the launching of a high end mobile phone, Blackberry 10, which has an operating system that is likely to go for 10 years unchallenged. If this is so, it is justifiable to contend that the market share of the company will continue growing relative to others. Further, with the adopted strategies, the company will continue penetrating into different markets and this will help it uncover unique and untapped opportunities. As a result, the company will continue growing in almost every sphere. This will be boosted much owing to the fact that it has introduced a new chief executive officer who is well versed with techniques and strategies that are likely to assist in outdoing Apple. Due to the experience that the new chief executive officer has, there is a likelihood that the revenues and the customer base will increase. The chief executive officer has a history of exemplary performance and he will integrate this into the company. As a result, Blackberry will be on the rise again.
Conclusion
From this analysis, it is evident that Blackberry has a suitable strategic management strategy particularly due to its utilization of the opportunities and curbing competition. While such companies such as Apple and Google pose critical threats, integration of high and integrative technology will give the company an edge over the other rival companies.
References
Dano, M. (2012). Updated: RIM to introduce tiered BlackBerry service pricing plan with BB10 launch. Retrieved From, http://www.fiercewireless.com/story/investors-cheer-blackberry-financials-rim-reports-shrinking-customer-base/2012-12-20
Gardner, W.D. (2008). $5.5 Million BlackBerry Fund Invests In Future Mobile Harvest. Retrieved from http://www.informationweek.com/news/personal_tech/blackberry/showArticle.jhtml?articleID=211800070
Gerry. J. K. & Scholes, R. W. (2005). Exploring Corporate Strategy. London, UK: Financial Times Prentice Hall.
Henry, A. (2008). Understanding strategic management. Oxford: Oxford University Press.
Miller, H. (2012). RIM CEO says BlackBerry maker `Not in dealth spiral`. Bloomberg. Retrieved from: http://www.bloomberg.com/news/2012-07-03/rim-ceo-says-blackberry-maker-not-in-a-death-spiral-.html
Miller, H., (2012). RIM bets on BlackBerry without keyboard. Bloomberg Businessweek. Retrieved from: http://www.businessweek.com/news/2012-05-01/rim-ceo-bets-on-blackberry-without-keyboard-to-challenge-apple

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