Why was BlackBerry so successful in North America during the 2000s? First to introduce push email
One phone with a lot of features
Dint have much competition
US govt and big multinationals accepted quickly
Meant for the corporate world
Slowly shifted focus from the corporates to consumers also. What difficulty did RIM face as it became bigger?
Apple iphone changed the meaning of smartphones
Scarcity of physical space
Reducing market shares
Scarcity of engineers
What options for foreign entry mode RIM had? Which option has RIM pursued? What are the pros and cons of entering into emerging markets? How would you evaluate RIM’s strategy for emerging markets? (e.g. control issues, relationships with the host government, timing of entry, competition with foreign/local firms, etc.)
Product/ Market focus
• Award winning handhelds
• North America, EMEA
• Aggressive move to “prosumer”
• R&D, engineering
• Local innovation (Waterloo, Canada)
• Patents and IP
• Expand customer base
• Expand global reach of BlackBerry platform
• Extend technology leadership
Introduction and reason for popularity in the 2000s.
RIM was a world leader in mobile communications market. It was founded in 1984 by a 23yr old University of Waterloo student Mike Lazaridis. RIM designed, manufactured and marketed the very popular line of Blackberry products that had reached 14million subscribers worldwide
in 2008 and had just over $6 billion in revenue. In early 2008, RIM was one of Canada’s largest companies with a market capitalization of $69.4 billion.
The Blackberry wireless platform and line of handhelds could integrate email, phone, IM, SMS, internet, music, camera, video and a variety of services in one wireless solution that was dubbed “ always on, always connected”.
Originally built for busy professionals, BB had made a considerable headway in the consumer market and had become a social phenomenon. The term crackberry was used to describe the addictive or obsessive use of the Blackberry. Just 6 months after launching FB for Blackberry, downloads of the software application had topped one million indicating that younger consumers were gravitating towards the popular handhelds.
BB also had a long battery life and was very popular with executives who valued the safe and secure delivery of corporate mail and seamless extention of other enterprise and internet services. R&D was the core of BBs success. Organisations which relied on sensitive information, such as the US govt and large financial institutions were early and loyal adopters of the BB and RIMs largest customers.
Having been the first to market push email architecture and a value proposition built on security RIM had more than 100,000 enterprise customers and an estimated 42% market share of converged devices.
RIM generated revenue through the complete Blackberry wireless solution which included wireless devices, software and services. In 2008, RIM introduced the award winning BB pearl and BB curve which were a significant design departure from previous models a nd for the first time targeted both consumers and business professionals.
BB partnered with wireless carriers such as Rogers in Canada and Verizon and USA. There carriers bundled BBs handhelds and software with airtimes and sold complete solution to end users.
Through the BB connect licensing program other leading device manufacturers such as Nokia, Motorola could also equip their handsets with BB functionality. Expanding the global reach of BB solutions was therefore the KEY part of RIMS strategy. RIMs main earnings were from the USA and Canada.
RIM was the first to market with two way messaging, recent tech developments had encouraged numerous handhelds vendors to go beyond traditional telephony. A shift in the telecom industry was moving demand beyond just cellphones to smartphones. In 2007, the key...