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How well will Blackberry do? The new strategy explained by CEO

It is obvious that Blackberry has much work ahead to regain lost ground. Leaving the hole has been assigned to CEO John Chen, a specialist in the ‘resurrection’ of troubled companies. Now, in an article on CNBC he presents a strategy whose first steps are already known: outsourcing manufacturing to Foxconn devices and internal remodeling to the company. The aim is for the firm to get into profit in fiscal year 2016. Chen set as first priority the focus of business enterprises. For that they have established a new operational structure with these departments: Business Services, Messaging, business QNX which is integration of devices in the car and the device area. The aim, as recognized, is to focus on services and software and implement a business model that is more efficient for devices.

John Chen

John Chen

It is clear that strengthening the area of business services should be one of the fundamental tools. Although the CEO reminds us that leaders are still here, but there are companies that have been open to other brands like Apple or Android. The demand for Blackberry 10 phones has been minimal and that has led to a huge stock of unsold products. Another pillar is the BBM messaging service. One of the decisions taken in recent weeks has been open to iOs and Android, allowing to include 40 million new users. “We will continue to invest in this popular service with plans to turn it into a source of income in the coming years” says Chen. Plus on the side of the devices, the CEO stresses the importance of ‘outsourcing’ announced with Foxconn. Outsourcing the production of devices is within the goal of being “more agile to respond to market demands and customer needs.” As mentioned before, the last experiment, Blackberry 10 has been a huge fiasco in sales.

BlackBerry

BlackBerry

In early November, Chen landed in the company after the abortive sale transaction. Distrust was high and was seen in the markets. However, in these three weeks worth grew by 22%. Neither heavy losses of 4,400 million from the third quarter marred, as agreed with the agreement with Foxconn that aroused the optimism of investors. Now, as the director says, many challenges lie ahead. They do with a workforce of 3,000 million and a strategy that is at least defined. We’ll see what happens.

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