BlackBerry has dominated the market share for mobile phone in Indonesia. “Three years ago, all we knew about selling phones was selling BlackBerrys – nine out of 10 phones we sold were BlackBerrys,” Mr. Chandra says. However, all that has changed since now, it is one out of 10, sometimes it did not even sell. There are a few reason of this declining, for example because of the strategic missteps, stiff competition and friction with the company’s head office in Waterloo, Ont.
In 2011, BlackBerry accounted for 43 percent of the new smartphones shipped to Indonesia, and now the market crumbled down to 3 percent in the market as of the first half of 2014. The market share is lower than the global brands such as Samsung and even smaller brands such as Advan, Evercross and Indonesian’s own budget phone Smartfren.
In an interview with BlackBerry’s former country head Andy Cobham who also managed Motorola business in the country for over a decade period mention that BlackBerry had an amazing technology and the business was growing before falling. Some of the reason mentioned is because every decision needs to go through Waterloo even on promotion. An example of this is the promotion for a 50 percent discount for the first 1000 customers to show up for the launch in which the local office reluctant with the idea for it might lead to stampede but it was still implemented and true enough the launch turned chaotic leading to dozens of injuries.
Another example is that the BlackBerry’s marketing material cannot be changed to a language that Indonesians understand partially because of copyright reasons. To make matter worse the former BlackBerry CEO Thorsten Hein mentioned before that they will exit consumer market to concentrate to enterprise consumer; it was a bad move since most of their user is individual.
The firm also does not promote locally hired talent and thus he lost several productive Indonesian employees who got frustrated and left. On top of that, when the government asked BlackBerry to filter 400,000 websites that is deemed for pornography or demanded access to BlackBerry’s secure data, like any other country, BlackBerry refused to do so. Moreover when the government asked the firm to setup a factory in Indonesia, BlackBerry refused to do so for adequate and congested roads and ports reason. To make matter worse, BlackBerry went to setup factory in Malaysia.
The spokesman, Matt Stewart, noted that the firm has launched local mobile wallet “BBM Money” and the branded “Jakarta Edition” BlackBerry Z3 in May this year. Therefore, the company still believe that BlackBerry will continue to be a number one player for its consumers.
Declining Share Market for BlackBerry in Indonesia
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