When it comes to former BlackBerry CEO Thorsten Heins’ occupancy, it was filled with collection of layoffs, disappointing phone sales and lots of quarterly losses. Last year, when he took over the troubled company, he presented with lots of problems and his replacement also faces dire some situation.
However, the company also declared that it firing Heins on Monday as the company also announced that it will no longer searching for a buyer. Apart from this, BlackBerry’s biggest shareholder ‘Fairfax Financial’ will invest $1 billion in the company. Because of this, BlackBerry finds itself rudderless as well as leaderless, and worse time when the Heins tool the rudder in January 2012.
His possession was filled with mass layoffs, disappointing phone sales and vast quarterly losses. According to some experts, Thorsten Heins made one biggest mistake: he did not prioritize BlackBerry’s core business-focused customers. Instead of that, the company was tried to repeat the mass consumer success of Apple and Google Android.
When it comes to discuss Philosophical mistakes at the core of BlackBerry’s issues, Steve Beck, a managing Partner at management consultancy cg42, said “You can look at certain missteps or specific decisions, but BlackBerry’s problems are really philosophical and structural”.
Beck also said “BlackBerry faced disruption in the market. When that happens you can either focus on what your main consumer base wants, or mimic what your rivals are doing,” “BlackBerry chose curtain No. 2.”
In the month of September, the company said that it would focus on corporate customers and “prosumers,” and scale back its device offerings from six to four. But analysts think it was too little, far too late in Heins’ tenure.
As per S&P Capital analyst James Moorman, “As usual, BlackBerry, you’re six months too late”. “That type of delay was already the big problem with the company, and Heins just continued the trend.”
Let’s take one major example – Heins further separated the core BlackBerry fan base by release the touch-screen device “Z10”, which is the first device on the BlackBerry 10 OS, instead of launching a QWERTY keyboard, which was the main selling point for the BlackBerry realistic.
However, the company was enforced to take a $1 billion writedown on unsold inventory of the Z10, and the keyboarded Q10 didn’t come out until months later.
Moorman said “[Heins] has got to take responsibility for that and it was one of the biggest mistakes that BlackBerry could not afford given how quickly rivals are releasing new smart-phone”.
BlackBerry’s next permanent CEO ‘John Chen’ is serving in the interim as it will have to plan not only that competitive smart-phone market, but also a years-long struggle, which continues to play out in the public eye.
As per the cg42 partner, the company needs a leader with both the passion to attack a huge turnaround project and the capability to make tough decisions.
“What BlackBerry really needs is someone who can look dispassionately at the core customer base and the company’s assets, and do what needs to be done,” Beck said. “That’s not impossible: Apple and IBM were turnaround stories once, too.”
He also agrees that BlackBerry still has a chance but time is beginning to grow short.
“I think [Heins] had an opportunity and he did not take advantage of it,” Moorman said. “It’s a tough road when you’re in a situation like BlackBerry, but the next CEO still has time to make big moves.”