Research in Motion (Blackberry) Case

Topics: Smartphone, IPhone, Mobile phone Pages: 5 (1501 words) Published: March 15, 2014
CASE:  Research in Motion (RIM)

Introduction
Research In Motion (RIM) is the company behind BlackBerry, one of the best-selling smartphone brands in the US. RIM first went public in 1997 and introduced BlackBerry as a paging device that allowed user to read emails. Soon, BlackBerry evolved into a full blown smartphone: a call, text, email capable organizer. It first gained ground in the business community and government, with its high-security and essential business features. BlackBerry was the most reliable, secure and efficient communication device. By 2003, RIM was the innovation leader in the smartphone category, providing consumers with a no-frills way to surf and email. It was the perfect communication device, with its software and hardware made by RIM itself. By partnering with many global networks, BlackBerry made itself available to business customers everywhere. After its first mass marketing campaign in 2008, subscription skyrocketed, with the BlackBerry as the new “cool” gadget. BlackBerry has tried to keep up with the competition and add more consumers than business customers by giving their phones multimedia capabilities as well as adding models with touch screens and offering BB Messenger, but now it finds itself struggling to gain ground against Apple and Samsung. Marketing Problem

How can RIM reinvent itself in order to recapture customers or stay relevant? Market Area
Blackberry has been one of the leading brands that produces cellular phones, tablets and smartphones (both of which RIM competes in), worldwide. The industry is very competitive, with the other popular brands such as Apple, Samsung, LG, HTC and Sony contending for users. Today, rivals such as Apple and Samsung holds 52% of the smartphone sales. RIM, with 6.0% shares of the market, now has been finding ways to be more competitive and bring back loyalty. Market Analysis

Strengths
Weaknesses
High-security softwares
Partnership with the U.S. enterprise and government sector
Partnership made with Foxconn to manufacture their smartphones Its ability to engineer hardware and create quality software (BlackBerry OS) Pioneered dependable security and email connectivity for smartphones Worldwide brand recognition

Enterprise resource provider – used in majority of fortune 500 companies Unresponsive/slow response to industry trends and competitor offerings (better camera, better OS, gadgets like tablets, phablets) People’s perception of BlackBerry as being for “professionals” only Exclusive Blackberry OS limits connectivity with other gadget brands Highly dependent on corporate and government contracts

Relatively weak products aimed at the individual consumer sector Opportunities
Threats
Target other developing markets which have undeveloped and unpenetrated smartphone markets e.g. Africa or India Obtain key patents to use existing technology to its advantage over competition Opportunity to expand its cloud-based services and benefit from the growing demand Rising demand for smartphones

Strong potential to expand within the tablet market

Since it develops both hardware and software it has two threats: phone makers (Apple and Samsung) and software makers like Google and Apple (Android & iOS) Developed countries have saturated markets, making it hard for Blackberry to increase its market share Fast changing consumer tastes make it difficult for BB to adjust its products Threat of competitors taking on the government and business sector Other messaging application like LINE,

           WeChat that threatens the appeal of BBM

Market Strategies (Marketing Mix)
Products: BB initially had the business oriented products and then added to more consumer oriented ones to reach other segments, starting out with the Pearl and Curve (which eventually became its affordable phone), then adding the Bold (aimed at business customers), Torch and Storm. Following the release of more iPhone models, it then came out with its BB 10 software,...
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