Blackberry Case Study

In: Business and Management

Submitted By melakram
Words 1387
Pages 6
Blackberry’s objective to sell 100,000 units of the new Blackberry Playbook 2 within the first year upholding an annual growth of five percent in an international market are attainable if Joe Smith chooses to enter the following countries ranked in order: Hong Kong, Saudi Arabia, and Australia. The method used to score the countries is based on taking the sum of the each of doing business rate and the inflation rate minus the GDP per capita percentage increase from 2009 to 2012. Ranked #1 is Hong Kong with a score of 2 + 3.7 – 22 = -16.3. As a result of this scoring method, Hong Kong is rated first when choosing a country for Blackberry to expand its market in. Having a fast-pace environment and with all its technological advancements, Hong Kong is one of the world’s most connected cities. They have experienced a fairly large increase in their GDP per capita at 22% over the past four years (2009-2012), while experiencing a low inflation rate of 3.7%. In addition, Hong Kong has a ranking of 2 on the Ease of Doing Business Index which has remained stable over the past five years. These factors contribute to determining whether or not the Blackberry Playbook 2 can succeed in the current environment. About 84% of Hong Kong’s population lives above the poverty line so already this suggests that majority of the population can afford to purchase cellphones as a commodity. There is a high usage value for cell phones with a penetration rate of 163%. Hong Kong is known to be one of the world’s most business-friendly regulatory environments with a transparent government and moderate tariff controls which makes it easy to do business and bring in a new product. As a result they are ranked very low at 2 on the Corruptions Perception Index. Although there are the cultural factors which need to be considered when doing business in a foreign country, the fact that their most…...

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