If You Can't Stand the Blood, Get Out of BlackBerry's Emergency Room

BlackBerry CEO John Chen is not afraid to get some blood on his bespoke suit. Source: BlackBerry corporate blogs.

John Chen just upgraded his BlackBerry title, dropping the "interim" part of his "interim CEO" title. He knows it won't be a walk in the park.

In an interview with Re/code, Chen underscored the challenges ahead -- and how much he relishes wrestling those demons.


"I am abnormal," he said, because most executives would prefer "a safer, easier job." BlackBerry is sick, in Chen's opinion. As the doctor on call, he should worry more about fixing what's wrong and less about dwelling on how the patient got sick. And that might take some messy work.

"If you are an emergency room doctor, you should not be afraid of the blood," he said.

Tough words indeed, and a refreshing 180-degree change from the blissfully optimistic view of predecessor Thorsten Heins. "No drastic change is needed," Heins said when he took the CEO post in 2012. Chen disagrees.

Chen aims at recapturing the corporate market, where BlackBerry devices and messaging services once defined the space. To do so, he wants to build engineering and sales offices closer to major business hubs like New York City and the San Francisco Bay. Getting closer to your actual customers is never a bad idea, so kudos to Chen on this one.

He also hopes to keep the BlackBerry messaging platform relevant despite the rise of WhatsApp, Line, and Apple's iMessage, just to name a few major rivals. That might work with a corporate-market focus as well, but Chen will see plenty of fresh blood if he wades into the consumer market again.

Last but not least, Chen noted that the QNX platform that's at the heart of BlackBerry 10 also is a market leader in the automotive market. Exploiting that strength would be timely as both Apple and Google want to undermine BlackBerry's in-car expertise right now.

For example, Audi announced a QNX-based system two years ago, but the German car builder also works with an Android-based Google system nowadays. At the same time, Apple is stealing contracts with BMW and General Motors away from QNX. BlackBerry has plenty of experience with losing business to Google and Apple in the smartphone and tablet spaces -- will this market be any different?

Maybe not, but John Chen is at least walking into these challenges with his eyes wide open. Admitting that you have a problem is the first step toward recovery, right?

I don't think that John Chen can win three wars at once, but it might be enough to score one or two wins. The next time General Motors wants to redesign the audio/video/navigation systems in its Cadillacs or Chevrolets, I expect Chen to do whatever he can to steal that business back from Apple and Google. He'll do the same when GM's 213,000 employees need a standard corporate messaging system, playing up BlackBerry's experience with secure communications and a sweet discount deal to boot.

Let the consumer market slip away, Mr. Chen. Your BlackBerry might stand a chance in these core markets as long as your head is screwed on straight.

How to bet on smartphone wars without all the blood and guts
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

The article If You Can't Stand the Blood, Get Out of BlackBerry's Emergency Room originally appeared on Fool.com.

Fool contributor Anders Bylund owns shares of Google. The Motley Fool recommends Apple, General Motors, and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

Add a Comment

*0 / 3000 Character Maximum