Rim Case Study

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The Dependables
“Your stocks are our business”

BlackBerry’s Rise in Brand Power
The Duelling Marketing Strategies of RIM versus Apple

James LePage A00778266
Keith Ebenal A00676512

Salma Sharif A00794613
Jun Kyu Han A00782408

Alvin Yu A00787901
RMGT 1A & FMGT 1M

Introduction
RIM and Apple are the two main companies in the smartphone market. RIM currently has a majority of the corporate and business professional portion of the market while Apple has a larger share of the mainstream consumer market with their new iPhone4. Problem

How will BlackBerry successfully maintain the market place as well as grow against Apple’s growing success? Assumptions
-The BlackBerry is entering the prime phase in its product life cycle -RIM/Apple will continue to expand new product lines and services -RIM/Apple will continue to expand into foreign markets and build new partnerships -There will be an increase in the number of different competitors -Demand for smartphones will increase

-New functions/features will be added to future BlackBerries -RIM/Apple will continue to partner up with software developers and add new applications Research
RIM (BlackBerry)
-Canadian telecommunication and wireless device company, best known as the company that developed the BlackBerry smartphone -Main headquarters located in Waterloo, Ontario, Canada
-Founded in 1984 by Mike Lazaridis (President, Founder, co-CEO), Jim Balsillie (co-CEO) -Launched the BlackBerry smartphone in 1999 as a 2 way pager -BlackBerry commands a 20.8% share of worldwide smartphone sales - 2009, 34.5 million sold representing 20% market share

-BlackBerry internet service is available in 91 countries worldwide on over 500 mobile service operators -BlackBerry models: Electron, Pearl, Pearl Flip, 88XX, Curve, Bold, Storm, Storm 2, Torch - The company’s revenue reached a value of $11 billion between 2005 and 2009 with 92% being generated outside North America -RIM has grown by expanding into foreign markets where it held 18.7 percent of the global smartphone market share in 2009. -BlackBerry Torch costs approx. $183 to make per unit

APPLE (iPhone)
-Founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne -Main headquarters located in Cupertino, California, US
-Apple has many products such as (Mac – Pro, Mini, iMac, MacBook, Air, and Pro) -iPod (Shuffle, Nano, Classic, Touch)
-iPhone (original, 3G/3GS, 4), iPad, Apple TV
- In 2009, 25 million iPhone units were sold, 14% market share -Revenue in 2009, 42.91 billion, profit 8.24 billion
-2010 market share, 14.2% share of worldwide smartphone sales -First Apple product sold called the Apple I, was an assembled circuit board -iPhone 4 costs approx. $188 to make per unit. It’s made in China General Smartphone Statistics

-2008, over 151 million smartphones sold
-2009, over 175 million smartphones sold
-2008 2009, 15% increase in units sold
-2009, smartphones accounted for 172.4 million (14%) of the 1.211 billion mobile phones sold that year. That's 23.8% more smartphone sales than in 2008 -2010 figures, smartphoness represented 61.6 million (19%) of the 325.6 million mobile phones sold, a sales increase of over 50% on Q2 2009. -The Coda Research Consultancy predict global smartphone sales of some 2.5 billion over the 2010-2015 period, and also suggest that mobile internet use via smartphoness will increase 50 fold by the end of that period. - Gartner expects over 500 million smartphones to sell in 2012.

Mobile OS 2010 Market Share Mobile OS 2009 Market Share

Competitive Analysis

BlackBerry is the leader in business smartphoness; iPhone targets people who seek media. Apple has stronger foundation and capital to support its after-sale services, but up to this point none of BlackBerry’s competitors come even close to this functionality...
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