Blackberry vs Iphone Study Case

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Case Study #1
BlackBerry’s Rise in Brand Power
The Dueling Marketing Strategies of RIM versus Apple
Presented by Team Mpyreon:
Natasha Gowda
Courtney Szabo Ying Ying Choi
Chris Hauk
Geoff Salt
MKTG 1102
Set 1J
ATTN: Professor Anne-Marie Webb Hughes
Submission Date: October 19, 2009
2
Table of Contents
Problem Identification…………….………………………………………………Page 3 Case Findings……………………………………………………………………….3 to 5 a) Facts…………………………………………………………………………...3 b) Research………………………………………………………………………4 c) Assumptions…………………………………………………………………..5 SWOT Analysis………………………………………………………………………….5 Alternatives………………………………………………………………………....6 to 7 Solution and Plan of Action…………………………………………………….………8 Application of Course Concepts……………………………………………Appendix A References……………………………………………………………………………….11 3

Problem Identification
In order to retain and grow smartphone market share, how can Research in Motion adapt its product strategies to control the next generation of their consumer target market segments, while strengthening their enterprise markets? Case Findings

a) Facts
Research in Motion (RIM) pioneered the development of the smartphone market in 1998 with the BlackBerry, positioned in government and enterprise target markets. Recognized as the ‘all-in-one’ portable wireless communication device, BlackBerry has gained a competitive edge with its wide portfolio of smartphone products: BlackBerry Curve, Pearl, Tour and Bold series. As Blackberry enters the maturity phase, RIM can’t rely on the sales of current enterprise segments to retain market shares. Therefore in 2008, the BlackBerry Storm series was introduced to cater to the mainstream consumer segments. However, the Storm resulted in low customer satisfaction rates and the Storm2 was launched as an improvement in October 2009. Notably, RIM is the fastest growing company in the world with 14 million BlackBerry users in over 135 countries (case reference). The company’s revenue reached a value of $11, 065 million between 2005-09 where 92% is generated outside North America. In FY2009, the company’s revenue grew by 84.1% over 2008 (Datamonitor, 2009). RIM has grown by expanding into foreign markets where it held 18.7 percent of the global smartphone market share in 2009 (Toronto Star, 2009). Strong financials attract investors and allow RIM to grow with introduction of new products and solutions. However, RIM faces a threat to its global share and revenue as various competitors enter the market and launch new products. 4

b) Research
The smartphone market is forecasted to rise 19% throughout years 2009 to 2011. Although mobile phone sales decreased by 9% in early 2009, the smartphone movement increased by 13% despite the economic crisis (Datamonitor, 2009). Smartphone consumers have proved that they value entertainment and multi-media applications in their mobile devices. These trends present an opportunity for RIM to grow their product lines by focusing more on mainstream consumer needs. Competitive Analysis: Globally, RIM holds 20% of the smartphone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smartphone competitors and is constantly rivaling to stay on top. Smartphone competitors consist of: High Tech Computer (HTC), Apple, Nokia, Google’s Android, Samsung and Palm. Apple’s smartphone net sales for the fiscal year end September 2008 was $11.8 billion. In 2009, research shows that Apple smartphones seized 13.3% of the global market share as their 3GB iPhone is growing in popularity selling for $199 with a service contract (Datamonitor, 2009; Toronto Star, 2009). Additionally, the iPhone provides a competitive advantage, as the device is able to run upwards of 85,000 applications providing higher utility for customers. Likewise, Nokia dominates the global smartphone share at 40% threatening North American market shares (Abkowitz, 2009). Target Market: The demographics of the current Blackberry target market is...
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