Blackberry’s Future [BBC]
In some ways our world all looks very similar. Prefab coffee and fast food chains, Cars that all look the same. Everyone on Facebook. But what we–and by we I include the people who actually produce and sell these goods and services–don’t do a good job of is understanding while the global products may be similar, how they’re actually used can be very different.
In short: Just because your fancy product is doing well in country X, do you actually know why?
This, it turns out, is kind of important. Because if you don’t understand that, chances are you won’t know how to keep the good thing going, let alone expand on it.
Take, for example, Research in Motion, They’ve done extraordinarily well in some countries, but none more so than Indonesia. Everyone, it seems has a BlackBerry. A friend recently bought one for his six year old daughter so she wouldn’t be teased at school.
This is music to the ears of RIM, because as you may have heard they’re not doing so well in other parts of the world. So it made sense for the company to try to sell its devices to another 7 million Indonesians, After all, the first 7 loved them.
So they’ve launched a new phone. It has a radio in it, because that’s what they heard people in emerging markets like Indonesia want. It has a special button on the side which will take users to its BB messaging service, which is what group-oriented Indonesians love about the Blackberry. And it’s going to be cheaper.
But RIM didn’t create its success in Indonesia,. That was organic–a lucky mix of Indonesians’ love of new things and their conservatism that keeps them wedded to products after others have moved on. Local telephone providers helped by keeping prices low. And out of it all came a lively ecosystem of program developers, street corner vendors selling accessories and fixing broken phones, and malls full of second hand dealers.
Now RIM is trying to formalize this, But they may not completely understand the unique culture of adoption and usage that Indonesians have given to the BlackBerry, which is quite different to how a corporate drone in New York might use it.
As globalization throws up more of these quirks companies are going to have to work harder, faster and better to understand why their products are popular. Because if they don’t they may not only find themselves unable to build on that success; they may find their efforts to expand actually make things worse. By trying to expand downmarket in Indonesia for example, RIM may run against one of the very things that makes the brand popular: its exclusivity, which makes a BB a status symbol.
That may sound odd to someone in Canada, Hong Kong or London for whom the BlackBerry is yesterday’s news. But that’s the point. Globalisation may look good on paper, but going local is the only way to make it a success strategy.