RIM, one of world leaders in mobile communications market, stepped into the telecommunication industry with its pioneered BlackBerry products. The BlackBerry’s wireless platform and line of handhelds provides remarkable functions with fully integrated e-mail, browser and organizer applications which today made one of the leaders in wireless mobile communication. RIM’s Successful Strategies
With worldwide demand for wireless handheld’s, RIM quickly identified the market potentials which saw them launching BlackBerry products with outstanding functions. Eventually, this lead to their explosive growth with revenue skyrocketing to $6 billion. However, a corporate giant cannot reach such heights without deploying thriving strategies. `
In conclusion, given the present scenario of the market and intense completion, RIM would find it difficult to expand and compete with the existing strategies. Therefore, RIM must significantly increase their R&D expenditure and alter the geographic expansion, human resource management, and acquisition strategies in order to survive in a competitive industry that thrives for innovation.
RIM, makers of the very popular BlackBerry, spent almost $360 million in R&D in 2007, this number was low compared to its largest competitors, both in absolute numbers and as a percentage of sales (e.g. Nokia spent $8.2 billion and Microsoft spent $7.12 billion on R&D). (Appendix, Fig1, pii). It is therefore vital to clearly define the various aspects of the current competitors and new entrants of the wireless communication industry. The major competitors include Motorola, Nokia, Microsoft, Apple, Palm, Samsung and Sony Ericsson. The issues below discuss different dimensions on which RIM compete in the market. RIM shows the highest increase in Revenue compared to its competitors from 2006-2007, but its R&D expenditure to sales percentage fell from 7.77% to 5.99%. Apple
Software: Apple’s new iPhone lead to increased competition for smartphones in the industry by setting up a new standard for applicability and to capture a wider corporate user segment for iPhones, Apple licensed its ActiveSync Direct Push which was a Microsoft technology.
Recruitment: Apple, using its attractive fringe benefits and admirable climate was quickly gobbling up the best of the developers from California’s Silicon Valley. In 2002 it bought a small German company, EMagic that lead to its creation of the well demanded Mac program Garage Band.
Geographic Scope of Operations: Oracle and Apple maintains one location to cultivate its innovation process. Most of RIM’s competitors are more centralized and concentrated to a particular location than RIM itself.
Recruitment: While most of its competitors were busy grabbing up all potential developers in and around the country, Motorola was experiencing layoff of its engineers. Motorola acquired Good Technology for $500 million that lead to development of new user friendly applications.
Globalization: Since 1993, Motorola’ R&D have settled in China as part of GSG (Global Software Group and gradually extended from Beijing to other cities. In addition it had invested an estimated US$800 million and recruited 3000 R&D employees. Recently, in 2007 it further expanded to Vietnam and South Korea formulating further plans to dispense out in China. More decentralized than its major competitors, it’s R&D is dotted across the worldwide in Australia, Singapore, Mexico, Argentina, U.K, Poland, Russia, Italy, Canada and India. Its success story by decentralization include MotoRazr and Moto Q. Notable drawback is its known lacking in smartphone softwares and failure to provide follow-up product therefore compromising with quality. On the contrary, the additional advantage reaped from its globalization is its collaboration with several Indian Institutes of Technology (IIT), Indian Institute of Science (IISC) and Indian...