“What have you done for me lately?” has been the mantra that has dominated business and working for other people since the concept of making money in the world started centuries ago. It does not really matter how great or fantastic something was done previously, it’s always about being first, innovating, and being ahead of the competition – all the time, from day 1. Bed Bath and Beyond, Blockbuster Video, Quiznos, Borders Books, and Sears are a list of just a few companies that at one time were doing the best of any company of its kind in the world, but over time, due to mismanagement and competition that saw better ways of doing the same thing, all of these companies no longer exist or are about to go bankrupt.
In 2007, the company Research in Motion (RIMM) owned the majority of cell phone sales in the world, entirely cornering the market. Owning a Blackberry became more of a status symbol than just owning a cell phone that could not only make phone calls but also text and send emails. The Blackberry was so popular and addictive that it was once known as a “Crackberry”. Blackberry stock reached an all-time high in June 2008 at 147 and its current price under its new stock symbol BB is 5 dollars. At its peak, Blackberry owned 45% of the cell phone market, now it’s 0%.
In June of 2007, Steve Jobs released the iPhone in a famous speech that revolutionized the entire handheld device industry – effectively putting all other similar hardware out of business. This was one of the “why didn’t we think of that idea” moments of all time. Of course, having a screen that does everything and not so much of the device dedicated to a keyboard is a far better idea.
The problem with Research in Motion who invented the entire idea of using a cell phone as its own server and changing the programming of cell phone towers is that all of their capital was dedicated to the one direction they had established originally. RIM did not have the ability to pivot into an entirely new technology direction. Apple Computer invented a far better idea, called the iPhone, and revolutionized the entire handheld device industry, making the iPhone the most popular electronic device ever created. As of a few days ago, Apple Computer is worth 3 trillion dollars, the largest market cap in history.
The new Amazon Prime movie “Blackberry” is an amazing business story about the rise and fall of Research in Motion. The meager beginnings of Research in Motion starting in a strip mall, to being ripped off by another company who would not honor their 16 million dollar deal to buy their modems. The rival company said that their modems were defective when they were not.
The co-owners of Research in Motion Mike Lazaridis and Doug, played by Jay Baruchel and Matt Johnson, tried desperately to find investors in their new cell phone idea and wound up talking to an angry, rude, egomaniac, Vice President named Jim Balsillie, played by Glenn Howerton who dismissed Mike and Doug, telling them to go to a Venture Capitalist. Then a miracle happened when Jim changed his mind because he was fired, and then became co-CEO of Research in Motion for 125 thousand dollars. Jim even mortgaged his own house to save the company, and it seemed he did not realize that RIM was already 1 million dollars in the red when he became CEO. Despite his angry and rude personality, it was Jim Balsillie who saved Research in Motion along with his marketing ability to eventually sell this new cell phone.
One of the highlights of this story was when Jim was failing to convince the boardroom at Verizon that their cell phone would ever work, and at the last minute, Mike walked in and saved the day, pointing out that their cell phone could be used as a server, bypassing all of the sever overload problems Verizon had with their own cell phone inventions.
The acting in this movie is outstanding throughout, with Jay Baruchel and Cary Elwes as the only well known actors in this production.
The Rotten Tomatoes for Blackberry is is at 98% with my rating 100% and a strong recommendation.
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