Economic Competitive Strategy Analysis for Research in Motion Ltda. A. Overall Description of the Business and its Markets
“Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry ® solution in 1999.” Founded in 1984, with Headquarters in Waterloo, Ontario, Canada and offices in North America, Asia-Pacific and Europe, RIM designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. “The company, through the development of integrated hardware, software and services that support multiple wireless network standards, provides platforms and solutions for access to information, including email, voice, instant messaging, short message service (SMS), internet and intranet-based applications, and browsing. Its technology also enables an array of third party developers and manufacturers to improve their products and services through software development kits, wireless connectivity to data, and third-party support programs.” RIM is also well known for its data encrypted network. The BlackBerry product line primarily generates revenue through sales of the BlackBerry Smartphone, software for businesses and the BlackBerry ® PlayBook™ tablet. It also offers accessories and non-warranty repair services. BlackBerry smartphones are available from various carriers and indirect channels, through a range of distribution partners, and are designed to operate on various carrier networks. BlackBerry products and services are used by millions of customers around the world to stay connected to people and content that matter most throughout their day.
New Chief Executive Officer, Thorsten Heins, stated that currently the company “is doing everything right and does not need a change in strategy, and must instead focus on harnessing its talent to improve the BlackBerry and revive sales.” He joined the company at the most difficult juncture in the firm's long history, with its market share in the U.S. collapsing as it battles well-capitalized global players and tries to maintain its huge growth in various emerging economies that are also seeing renewed Smartphone competition. Heins recently added two new members to his team to tackle the issues they are currently facing. Kristian Tear, joined RIM from Sony Mobile Communications where he served as executive vice- president and will now serve as RIM’s new COO. Frank Boulben, the former executive vice-president of strategy, marketing and sales for LightSquared, will serve as CMO. Heins’ believes that Kristian and Frank will bring the level of knowledge of the rapidly changing wireless global market that will help RIM sharpen its focus on delivering long-term value to their stakeholders. The new CMO will be responsible for helping to repair the BlackBerry's dented brand, and will give up the opportunity of licensing RIM's new BlackBerry 10 operating system to other handset manufacturers. Mr. Heins seems convinced RIM’s long-term objectives of overcoming these difficult times will become a reality as he says "it's a fantastic growth story and it's not coming to an end.” He believes that it is not changes, but evolutions, that are part of RIM's attempt to regain market and consumer confidence as it streamlines operations, refocuses vast resources and tries to bring out innovative new devices later this year running an improved operating system that will deliver for their users a user interface environment worth using that will either save RIM or condemn it to high-tech's history books. B. Macroeconomic Environment
1. Global economic trends & outlook
Mobile telephones are seen as "a basic necessity" around the world and should enjoy persistent strong demand throughout an economic downturn. With or without a recession, millions of people in India, China, Nigeria, and other emerging markets will seek out mobile phones. Increasingly cost-conscious households in Europe...
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