BUS 374 | Organizational Theory
Organization “In the News” Analysis Paper
RIM Claws Back Against Apple and Google With Free Tablets
by: Mike Isaac of Wired
Rolando A. Fuentes Ruiz
SID : 301064105February 20, 2012
Research in Motion, (RIM), is “a global leader in wireless innovation, (which) revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999” [ (Research In Motion, 2011) ]. While RIM has no publically available mission statement [ (missionstudy, 2009) ], we can deduct the following: 1) From the aforementioned description, they are committed to innovation. 2) From the article we will discuss later on, they are seeking to strengthen relationships with developers 3) From past history, reputation, and numerous achieved certification; they wish to provide a highly secure means of communication through mobile devices While it is not possibly to quantify most of RIM’s operational goals we can try to establish what they may entail. A recent interview with new CEO Thorsten Heins points towards having their operative goals built around having an innovative culture that involves employees and develops them and having a top 3 market share globally in the mobile market [ (BlackBerry, 2012) ]. Furthermore, they are also very focused on reducing their costs which is demonstrated by their announcement of a core optimization program and CORE on June 16, 2011. These programs were meant to analyze the companies’ procedures and cut out overhead and redundancy [ (Research In Motion, 2011) ]. RIM’s competitors have been highly publicized and are listed by Yahoo Finance to be Nokia, Google, and Apple [ (Yahoo! Inc., 2012) ]. With RIM being in the mobile market, their consumer base is very broad selling to the general market. With such an advanced device the list of suppliers is vast as they need to provide all the parts from glass to processing chips and these suppliers are located around the world. Lastly, their key partners are mobile companies large and small such as Verizon, Sprint, Vodafone, and Orange. Having previously worked at RIM for a year I know these statements to be fact. Article Importance and Recap
RIM is currently going through relatively tough times exemplified by, “collapsing market share” [ (Isaac, 2012) ] and their declining stock value. RIM’s shares were being traded mostly between the $14 and $17 range per share in the month of February to date compared to $144 a share in the summer of 2008 [ (Google, 2012) ]. As recently as 2009, RIM accounted for half of the US smartphone market share [ (Gardner, 2009) ], but latest reports have them only accounting for 6.5% of the US market [ (Miller, 2011) ]. This fall from grace from the once dominant organization of the mobile space creates interest from a wide range of stakeholders. Consumers are interested as many have used RIM products in the past and investors are interested as they have gained and lost many dollars from the organization. As the mobile space is a very broad market it means that there is going to be many opinionated individuals for very different reasons. Because of RIM’s high profile and past and present penetration in the general population, a new business strategy is very newsworthy and is something people will talk about. Mike Isaac’s article, “RIM Claws Back Against Apple and Google With Free Tablets,” covers RIM’s decision to give android app developers free playbook tablets so long as they make their app available on the Playbook ecosystem [ (Isaac, 2012) ]. The article starts with a quote from Nokia CEO Stephen Elop who describes the importance of a platform’s ecosystem or in layman’s terms the amount of apps built for a platform. It further describes the relative lack of apps RIM has compared to Android, the Google platform, and iOS, the Apple platform. After stating the previously mentioned new strategy being employed by RIM, the...
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