Wednesday, 5 March 2014

Chen admits he has a “50:50 chance” of turning BlackBerry around

Chen admits he has a “50:50 chance” of turning BlackBerry around
CEO John Chen opened up about his mission at BlackBerry in an interview for the Financial Times. He believes he has a "50:50" chance to turn around the struggling company. The CEO aims to make BlackBerry's cash-flow positive by the end of its current fiscal year and return to profit before the end of March 2016. He also hopes that BlackBerry will eventually become a dominant market player again.  

Mr. Chen believes the company has to act now, and refocus on its "heritage and roots - delivering enterprise-grade, end-to-end mobile solutions." He briefly compared his task at BlackBerry with his successful turnaround of Sybase, which went from stagnation to being acquired by Germany's SAP in 13 years. That's quite the chunk of time, but under his helm, the company did manage to achieve 55 consecutive quarters of profitability and a market capitalization of $5.8 billion, up from a low of $362 million. Obviously, the situation is more difficult with BlackBerry. Chen said "it's a bit more challenging to engineer change" in the Canadian company, without elaborating further.
John Chen stated that "it's important to stay positive" and commented that BlackBerry's enterprise customers tend to stay longer, although they are harder to win. Recently Chen scoffed at enterprise competitor Good Technology and US wireless carrier T-Mobile for their BlackBerry-undermining promotions which gave customers who want to ditch the company's services and phones an advantage.
Although BlackBerry fans are as outspoken as the company's CEO, T-Mobile's 94% trade-in rate of BlackBerry phones goes to show that the company's former management couldn't deliver an attractive enough portfolio of consumer products. That's, once again, something Chen's BlackBerry is starting to look after. It has already begun offering phones that directly address customer feedback and market opportunities. The BB Z3 is an offering for the emerging markets, which BlackBerry used to lack, while the Q20 brings back the trackpad and buttons “toolbelt” that BB fans missed from previous QWERTY-handsets. More powerful and compelling phones, including one with a 64-bit octa-core CPU, are planned for the non-distant future as well. 



  

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