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Blackberry Strategy

By | April 2010
Page 1 of 14
BlackBerry’s strategy to gain market share in the mainstream market and The use of promotions to achieve its goals

Team JMARCS
Bozak, Dasgupta, Feng, Kumar, Sharma, Tu
SET: 1G     MKTG-1102    Instructor: Don Linder     October, 22, 09

Introduction:
Research In Motion (RIM) is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. (Reseach In Motion) RIM was founded in 1984. RIM now has offices in North America, Europe and Asia Pacific.

BlackBerry is a line of wireless handheld devices that was introduced in 1999 as a two-way pager. In 2002, BlackBerry was released, which supports push e-mail, mobile telephone, text messaging, internet faxing, web browsing and other wireless information services. It delivers information over the wireless data networks of mobile phone service companies. BlackBerry holds the world's second highest market share in the smart phone platform, capturing 21% of worldwide smart phone sales in Q2, 2009. On 30 May 2009, RIM announced the number of BlackBerry subscribers has reached approximately 28.5 million. (Wikipedia)

BlackBerry’s competitor Apple introduced the iPhone in 2007 which was named the Invention of the Year by Time Magazine. Apple iPhone is growing at a very impressive rate and with introduction of iPhone 3GS, Apple looks all set to overtake RIM by mid of 2010 and become number two player in smart phone market. Analysts were saying that RIM is unlikely to maintain its over 50% share in North America due to growing competition from Apple, Motorola, and Palm, among others. (Wikipedia)

Problem:
How does RIM gain market share in the consumer smart phone market?

Key Findings:

Consumer behaviour

• Two types of users for smart phone customers:

➢ Enterprise customers- BlackBerry was a "company decision".

➢ Non-Enterprise customers- BlackBerry was a “personal decision”.

• According to...
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