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Apa style research paper research in motion company

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Apa style research paper research in motion company

Apa style research paper research in motion company

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  • Very informative and well done paper. thank you, I am currently doing my paper on RIM, MBA level. this paper is very inspiring.
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  • 1. Research in Motion Company limited (RIM) RESEARCH IN MOTION COMPANY LIMITED (RIM) Name: Grade Course: Tutor’s Name: (26 February 2011)
  • 2. Research in Motion Company limited (RIM) 2 Table of Content1.0 Introduction of the organization............................................................................................32.0 Identification of the industry..................................................................................................5 2.1 RIM Competitors...................................................................................................................6 2.2 Potential Profitability of the Industry....................................................................................7 2.3 Bargaining Power of Customers...........................................................................................7 2.4 Threats of New Entrants........................................................................................................8 2.5 Threat of Substitutes..............................................................................................................8 2.6 Bargaining Power of Suppliers.............................................................................................8 2.7 Competitive rivalry................................................................................................................93.0 Company success.....................................................................................................................9 3.1 Intensive research..................................................................................................................9 3.2 Good External and Internal Economy.................................................................................10 3.3 Technological growth..........................................................................................................114.0 Reason for failures in the company......................................................................................12 4.1 Legal Issues.........................................................................................................................12 4.2 Political aspects...................................................................................................................12 4.3 Social and Cultural Forces..................................................................................................13 4.4 Current firm-level strategy..................................................................................................13 4.5 Current business-level strategy...........................................................................................14 4.6 Competitor’s business-level strategies................................................................................155.0 RIM marketing strategy........................................................................................................156.0 RIM financial position and financial strategy.....................................................................167.0 RIM production and purchasing strategies........................................................................17 7.1 HR and Information Technology strategy...........................................................................17 7.2 RIM strengths.......................................................................................................................17 7.3 RIM weaknesses...................................................................................................................18 7.4 RIM opportunities................................................................................................................19 7.5 RIM threats..........................................................................................................................208.0 Strategic alternatives are available for RIM.......................................................................209.0 Pros and Cons of the alternatives.........................................................................................22 9.1 Selected alternative..............................................................................................................23 9.2 Implementation....................................................................................................................24 9.3 Controlling the alternative..................................................................................................25 9.4 Anticipated crisis.................................................................................................................2510.0 Appendices............................................................................................................................2611.0 References.............................................................................................................................27
  • 3. Research in Motion Company limited (RIM) 3 Research in Motion Company limited (RIM) 1.0 Introduction of the organization Research in motion limited (RIM) (TSX: RIM, NASDAQ: RIMM) is company in Canadathat deals with telecommunication and wireless devices and has been known for the outstandingdeveloping of blackberry Smartphone. The company has it is headquarter in waterloo Ontario inCanada and they are the main sponsor of RIM park that is situated in the northeast of the city.The company was founded by mike Lazaridis who is currently the company co-CEO. He worksalongside Jim Balsilie. Before the company produced Blackberry, it was working with RAM Mobile Data andEricsson in turning Mobitex wireless date into a two-way paging and wireless e-mail network.During their work with the Eriksson Company, they developed Inter@ctive pager 950 thatstarted functioning in 1998. This device was a size of a bar soap and competed very well withSky Tel two-way paging network that had developed by the Motorola Company,(BlackBerry.com, 2010). The Canadian institution and venture capital investors funded its early development in1995. It did this through placing it in the privately held company. Working Ventures Fund Inc.made a step by investing in the company with five million Canadian dollars. This was to be usedto complete the company development of the two-way paging system hardware and software.RIM floated shares in the Toronto Stock Exchange in January 1998. Before initial public offer,they had raised thirty million Canadian dollars in pre-IPO financing. Since the time that they sold their IPO in the stock exchange market, they have producedseveral devices that run using GSM, CDMA and iDEN networks. Blackberry devices did verywell in the corporate world as it send the message very fast and also it was very efficient in
  • 4. Research in Motion Company limited (RIM) 4sending e-mails. This made it to be nicknamed ‘Crack berry’ as they called crack cocaine assome of the people believed that one could not live without it. Research in Motion and Information Associates reached a licensing agreement in 2006.This was meant to ensure that the RIM Company would offer Pocket Mac that was used by theBlackberry to Mackintosh users free. The RIM Company grew tremendously and in 2008, theMediacorp Canada Inc. named it among the Canada Top hundred employers in the MacLean’snews magazine. In 2009, RIM Company announced their expansion strategy that would involve globaloperation. This was done through opening an office in North Sydney in Australia. This newoffice had training facilities, a strategic partner marketing centre, research and developmentcenter as well as technical support service center. This leads to increase in the work force in thecompany to 12000 jobs that the company offers worldwide. In the spirit of expansion, the company in June 2009, they announced that they were toacquire Dash Navigation who was the manufacturers of Dash Express. On the same year onaugust, they were capable of acquiring Torch Mobiles therefore enabling them to includeWebkit-based browser on the Blackberry. The idea of expansion and urge of exploiting themarket may have contributed to the RIM Company to be announced by the Fortune Magazine on18 august 2009 as the fastest growing company in the world. They gave a growth rate of 84% inprofits growth within a span of three years. The company continued its expansion strategy in 2010 by acquiring Viigo Company,which is the developer of the Blackberry applications. This is a company based in TorontoCanada. It went ahead on April in the same year QNX Soft Ware systems. This was donethrough the agreement that was signed by the company in corroboration with Harman
  • 5. Research in Motion Company limited (RIM) 5International on 12 of April 2010. This collaboration will ensure that RIM Company is able tointegrate and enhance user experience with Smartphone and in-vehicle audio and infotainmentsystems. The deal will also ensure that the company integrate other values to the company suchas intelligent peripherals that will help add intellectual property to the RIM‘s portfolios. This willhelp the company to provide ling term synergies to the company’s devices throughcomplimentary operating systems experts in both QNX and RIM Company, (Tricia, 2010). It was until September 2010 that the company announced the launching of theBlackBerry Playbook tablet computer. This was projected to be in the market by the beginning of2011. By May 2010, RIM operating system occupied 10.4% of Smartphone operating system inthe market, (Lendino, 2009). 2.0 Identification of the industry The main identification that made the RIM Company to be outstanding in the market isthe realization that it cannot offer only mobile enterprise software only. It realized that thissoftware should be given to the market as a complete offer that can be used as a completecomponent in the market. Therefore, it had to ensure that the service that they were offering hadto be given to the market through a mobile handset. It also succeeded in convincing thecustomers to sell the IT products and service. This ensured that the company remained a force toreckon with in the market arena in their pursuit of wireless email market. Initially, no othercompany offered such service as the competing companies as seven and Visto companies werenot making handsets while Nokia never offered wireless email services. These advantages made the company to grow very fast as the investors slammed in thecompany in the past years. It established itself by taking advantage of being sole suppliers ofsoftware devices in an immature market. It therefore established itself as a leader who was
  • 6. Research in Motion Company limited (RIM) 6capable of raising their company very fast than other companies. However, the market hasmatured up very fast of recent soon and RIM is facing a stiff competition from variouscompanies. 2.1 RIM Competitors The company has experienced significant criticisms from their customers. This has madethem prove that that they are still competitive in the market. They are running out of the streamas the competition is building up on daily basis. As it experience competition crisis, it is veryimportant to convince their customers by protecting their brand in the market and ensure that thepurchasing decision as well as operators’ launches is not delayed. Initially, RIM could not have feared competition especially in the mobile email market.This is because most of their competitors were small companies which most of them werestartups. These companies had limited resources and less attractive offers. Nevertheless, RIM Company has found amidst mighty company recently offering greatcompetition. These companies are out to ensure that Blackberry do not become the windows ofthe wireless email. One of the Research In Motion Company competitors is the MicrosoftCompany. The company is out to ensure that it push itself in the email market. The othercompany that poses a great threat to the company by launching competing products andacquiring Intellisync is Nokia Company. Intellisync Company initially supplied the RIMCompany with synchronized desktop software. These two companies are bigger and pose stiffcompetitions to RIM. They have also resources and they are very influential, (Elsa & Green,2006). One of the biggest competitions that the company poses is that they have partnership withthe operators and they are both producing the handsets. This means that though the company has
  • 7. Research in Motion Company limited (RIM) 7a good market foundation, the company is experiencing pressures especially in lowing theirproduct prices to cope up with the market. Nokia and Microsoft are positioning themselves ingiving their customers cheaper services that are ensuring RIM to feel the pressure to lower theirprices. Other companies that are still getting to the smart phone market are computermanufacturers Acer and Dell. Dell is rushing in the market to produce Del Fortune 500 smartphone. Palm is also another company still competing for a pie in the market with them comingup with iPhone, which is to use Sprint network that will be available through Verizon. Google ispouring many resources to fund its Android Smartphone operating system and it is offeringtraining over it. Motorola is another company that is still supporting Android Smartphone. Theseall companies are at the verge of getting into markets that RIM Company has dominated foralong time, (docshare.com, 2010). 2.2 Potential Profitability of the Industry There are different approaches that are used in the determination of profitability indifferent markets. Am going to use the model that was developed by Michael E. porter, wherethe profitability potential of an industrial is going to be described as the long run return on theinvestments, is much reliant on the degree of competition in the selected industry. The fiveforces that are described by Porter include; the threat of new entry, the power of suppliers, thepower of buyers, the threats of substitutes, as well as the industry rivalry 2.3 Bargaining Power of Customers The options available to customers, bargaining power is very high. This is because thereare other brands available in market, which are offering competitive markets. This is particularlywith the consumer sector other than the enterprise sector, (smh.com.au, 2008)
  • 8. Research in Motion Company limited (RIM) 8 2.4 Threats of New Entrants The entry to the market segment that is dominated by RIM is not easy. This is based onthe fact that, all established companies have the opportunity of being new entrant to thediversified communication industry of Research in Motion. Though until now, RIM has beenhaving full advantages of its technological dominance in the market place, there still remain thepossibilities f new entrants in the field. Such companies might use older technology in arevamped and modernized way. The threats of new entrants increased the ODMs usage as wellas globally standardized components. Barriers to entry have considerably reduced. This has madecompanies with good brands have the capability of using their brand names to introduce theirproducts in the market. There are big firms like Google together with other IT giants have theopportunity of entering the market as they have the required infrastructure. For instance, the newentrant is Apple, (Speed, 1989). 2.5 Threat of Substitutes Getting a substitute for mobile sis very hard, what firms are trying to do is just improvingon the existing technology, other than coming up with and eliminating the mobile technologywith completely new products. On the other hand, new technology advancements have posedserious risk of substitution. The 3G and EDGE technologies pose immediate threat to RIM’smarket control. Though such technologies are being used by RIM, they offer ways throughwhich new players may enter the market. However, RIM is well positioned in the market and haprecedence of being in a position to integrate its products, to form new items. 2.6 Bargaining Power of Suppliers The bargaining power is attributed to the sheer volumes raw materials and othercomponents bought by RIM. The suppliers in the industry have low bargaining power in the
  • 9. Research in Motion Company limited (RIM) 9manufacturing face. For instance, the processors of similar architecture used by RIM aremanufactured by many companies like the Intel, freescale semiconductors, Samsung amongother companies. This is based on the fact that, suppliers always looking forward to associatethemselves with major firms for long term. On the other hand, there exist different suppliers forthe services that are offered by RIM. Due to this, RIM has to make use of networks of existingmobile operators, and in some occasions, where there exist limited number, or only one operator,the bargaining power of that supplier tend to be elevated. However, even without Lynas, Chinastill controls more than “95 per cent of the worlds supply of rare earths, used in Research inMotions BlackBerry, Apples iPods and General Dynamic’s tanks.” (smh.com.au, 2011). 2.7 Competitive rivalry Amongst the smart phone providers, the most challenging companies to RIM are Appleand Apple. These two companies have forced Research in Motion “to innovate the products inorder to stay competitive and enjoy high market share.” Porter, 1980). 3.0 Company success 3.1 Intensive research To ensure that the company does not exist in isolation and increase their performance, itengages in intensive research to vary their external environment. This is because there factorswhich are beyond the firm’s control. It is true that, Research in Motion has an extensive marketglobally and it is further involving into newly industrialized nations. This creates a need forintensive research for the company in all the areas in globally. As an effect, its environmentalanalysis has to regard to the economy of the world, as a homogeneous environment. Therefore, itcreates a need to ensure that they understand the way the market is in all the parts of the worldthis part has been a great success in the company. They have ensure that they created research
  • 10. Research in Motion Company limited (RIM) 10sections in their companies globally which has made them compete intensively in the market andin provision of quality phones. 3.2 Good External and Internal Economy Due to the high demand that has been brought by the national and international marketsin the past two decades, it has contributed to the success of the Research in Motion Limited(RIM). Most of the countries Gross Domestic Product per capita have risen especially incountries that RIM has been operating in. This has made the demand of the RIM product toincrease sharply. In fact, RIM enjoys favorable environments for business growth. This has madethem to expand their business globally especially in the developing countries. A good example isthe premise that they opened in Sydney Australia. This is has really been made possible by thepurchasing power of individuals going high. Due to improved living standards, most of thepeople are able to afford their products. A growing economy as a result has guaranteed RIM aready market for their products. In addition, a growing economy guarantees RIM a source of capital. This is because therewill be more money in the disposal as financial institutions and governments will have money tolend out at favorable interest rates. The improvements in International as well as nationaleconomy have lead to increased expansion and creation of new market, which in its effectincreases the need for business increases. To ensure that private sectors needs are catered foramid their demographic increase, hence the usefulness of BlackBerry to many businessprofessionals, which are the primary consumers of RIM’s products. The increased demand forBlackBerry in developing economies is much noticeable fin the hundreds of the new corporationdeals that has been being signed by RIM every year with local operators’ worldwide.
  • 11. Research in Motion Company limited (RIM) 11 On the other hand, global recessions that have taken place globally especially the 2008economic recession and depression, resulted in lower consumer disposable income. The interestsas well as the exchange rates in different economies have also affected the company’s strategiesin different ways, (John, 2007). 3.3 Technological growth The technological advancements that have taken place in recent soon has been the mostsignificant environmental impact on the business success in RIM. Businesses in the whole worldare evolving into using email as one of the main communication and contact medium. This hasmade the usage of such mediums like fax and as well as written mail nearly obsolete. By beingthe first and probably still the one and only single company that that have been providing e-mailto go solutions, the company has greatly benefited via providing a medium for professionals tobe in a position of leaving their tables and still communicate through the emails. In addition, itstechnological marketing system, which has been through global wireless communicationscarriers as well as third party distribution channels, has greatly advantaged the company in oneway or the other. However, new technologies have posed a risk to the market, for instance the introductionof the 3Gbraodband services have affected smart phones negatively. As the internet continues tobe faster and efficient, lit might end up attracting new players, who might come with newfeatures as well as the applications in the sector. Technologies have increased the reuse ofphones due to recycling, (authorstream.com, 2010).
  • 12. Research in Motion Company limited (RIM) 12 4.0 Reason for failures in the company 4.1 Legal Issues Since the turn of the century, the company has been involved in a number of suits relatedto the alleged patent infringement. Several legal issues that have been put in place to regulatebusinesses have brought this about. The most recent and notable one was the brought about byNPT Inc. It involved patent infringement in email over the wireless technology. This battlebetween RIM and the NTP Inc adversely affected e-mail users in the U.S. However, the battlehas made the company to rise to any occasion that has met it afterwards making it position itselfvery well in the business world. It also made the company to be very sensitive in making surethat they protect their products. The legal briefs that have been filed in this case conveyedcharges of misleading a federal judge. However, there have been claims of ant-Americanism aswell as the accounts of vital documents going missing from the library in Norway. After anintensive legal battle, in 2006, Research In Motion ltd announced that, it has successfully paidUS $ 612.5 million. Visto Corp brought another lawsuit to court in 2006, for the patentinfringement, (theregister.co.uk, 2002). 4.2 Political aspects Political factors in some countries where RIM operates have lead to financial deficits,which have resulted to higher taxes leading to lowering RIM’s profitability in such countries.The changes that have taken place in different parts of the world like changes in governmentpolicy, and government stability, have resulted to the company’s strategies. There are also legalissues that ensure clean environment, as they regulate the quality and durability to ensure longerfunctioning, phone fascias, which can be used for a very long time. Regulations have been put inplace to ensure that, phones are being produced and used with all possible environment friendly
  • 13. Research in Motion Company limited (RIM) 13production methods. Other legal factors affecting Research In Motion Ltd include; the controlover pricing and monopolization. The telephone regulations of different nations in most casesdeal with quality, health as well as the safety of mobile users. 4.3 Social and Cultural Forces The shared norms of different businesses that are shared in the whole world havedrastically changed. This has occurred considerably taken place in the past couple of years, withbusinesses becoming more customer oriented. As an effect, communication has increasedbetween customers and businesses, which have practically increased the use of RIM’s products.On the other hand, cultural diversity has also affected the global marketing communication ofRIM Ltd. Globally, there are different cultural standards being, thinking and acting because ofcultural diversification, which have influenced RIM’s workplace values as well as businesscommunication. Therefore, as an effect, for RIM ltd to ensure effective global communicationand successful business transactions, it has promoted cultural differences and enhanced culturalsensitivity. Marketing across cultures globally has resulted to sociological differences. Whilethere are diversified global cultures for RIM ltd to consider, global communities are beinginfluenced by different initiatives. The goodness is that, Smartphone have been accepted bycustomer’s lifestyle and integrity part of day-to-day life in most countries. It has been consideredas a high value solution that has been used in the provision of many applications across theglobe, (authorstream.com, 2010) 4.4 Current firm-level strategy Due to the urge that the company has to expand their territory, the firm has put up firmstrategy to ensure that they retain their competitive edge. Due to the popularity of their software,they have signed an agreement with the Nokia Company who is their market leader competitors
  • 14. Research in Motion Company limited (RIM) 14who agreed to license their software on their new cellular phones. The firm has also expand theirterritory by ensuring that their radio modems has received GSM/GPRS certification in Europeand pacific (theregister.co.uk, 2002). This makes them to have third party vendors with theirhardware across the globe. The company has recently streamlined their operations to ensure that their business ismore efficient. This has ensured that they lay off some of their workers from 2200 to 1950 toreduce the overhead cost of their product thus projecting increase their profits. 4.5 Current business-level strategy To ensure that the business is up to the competition that has been of recently posed bytheir competitors, it has put in place some various strategies. They decided that they would go astep further in their business by producing a Blackberry on a chip product that is being usedthrough the third party products. This made the phone manufacturers make small devices that arepowered by Blackberry chip. The company has taken advantage of licensing Blackberry to phones as ISP hassubsidized cellular phones that is not the case with Blackberry pagers. This means high sales forthe company. The decline in sales that has been experienced by the company was due to servicecharges. Therefore, after the company introduced these new features, sale is expected to rise.Finally, the company has provided phones that have voice capabilities. They are also PKIenabled thus supporting encrypt and sign mail message through digital certification. This makesthe users able to see attachments such as PDF with selective options, MS Words, Excel andPowerPoint (smh.com.au, 2011).
  • 15. Research in Motion Company limited (RIM) 15 4.6 Competitor’s business-level strategies Most of the RIM company competitors are offering very diverse product at cheaperprices. Such company as Nokia, which is the biggest RIM competitor manufacture handsets andsell IP network to their customers making them be very competitive. Their market prices areconsiderable thus very competitive. Nokia has acquired Intellisync Company that has beensupplying synchronized desktop hardware to RIM to ensure as one of their business strategy toexpand their territory. Motorola Company is funding the Android Smartphone that has beenproduced by the Google Company as its strategy in putting more force in the market. Most ofthese companies are collaborating with other companies as their strategy to ensure competition inthe market is kept up to the standard. 5.0 RIM marketing strategy Marketing is an integral part of any company; it is a process of developing value andawareness of its products or services, as well as informing and communicating to potential end-users concerning what the organization has in store for them. It also entails engaging consumers’relationships in order to attain the desired outcome. Organization’s marketing strategy has beendeemed the backbone of RIM company marketing plan. It has helped the company integrate themarketing goals, policies as well and tactics. The company has been ranked to be the fastestgrowing company globally recording an increase of 84% in profit and 77% increase in revenuein the last three years. This is thanks to its marketing strategy that successfully blends the fourmarketing mix, pricing, advertising or promotion and distribution (Fortune Magazine 2009). According to Vuong, 2008 the company uses B2C marketing strategy. The companyonline strategies can sale goods to individual customers. Through the arrangement, customers arecapable of buying the company’s product via the internet or just make a call to the customer
  • 16. Research in Motion Company limited (RIM) 16service for help, as they are need of formally buying a product. Similarly, developing of uniqueand quality product that is competitive in terms of prices is also used in marketing. Using lowprices for its products also has been used to attract customers. This is driven by the notion thatwhen prices for its products are low, and a relationship between the company and customers arein place, then it will be in a position to sell additional goods thereby increasing its margin(Sweeny, 2009). To successfully do marketing in a successful manner, the company does carryout research, which is essential in decision making when it comes to making marketingdecisions. 6.0 RIM financial position and financial strategy RIM according to Fortune 500 is the fastest growing company having a stable andgrowing financial base. For the third quarter of 2011, revenue grew 19% to stand at $5.49 bnfrom $4.62 bn the previous quarter. This is a 40% rise from the same quarter the previous fiscalyear. Breaking down the revenue for the period are 82.0%, of devices 15.0% for service and3.0% for software. For this period, the net income stood at $911.1 million compared to $796.7million in the previous quarter and $628.4million in the same quarter the previous year. All sortsof investments total cash as well as cash equivalent stood at $2.5bn this is as o0f 2010 November2010. An examination of the company’s short-terms and long-term assets as well as liabilitiesand equity shows that RIM heavily relies on equity for funding. Most of its assets are short-term.This means that RIM is interested in having in place a financial strategy that is short-term. RIMutilizes its own funds to finance assets.
  • 17. Research in Motion Company limited (RIM) 17 7.0 RIM production and purchasing strategies RIM uses lean production. This is backed with determination, dedication as well asattention. This has seen to it that the company is effective and in time in production. The same isalso applied in purchasing activities. Three main positions are in place to over see purchasing,production and repairing equipments (Dilger, 2009). Lean production, purchasing and supplymanagement coupled with adoption of technology has brought about a supply chain,manufacturing and purchasing that is economical, much leaner for smooth flow of the products. 7.1 HR and Information Technology strategy In terms of technology, RIM is one company that is has well constructed plans ofadopting new technological innovation. The IT department has human resource that is wellacquitted to issues relating to ensuring that technology is adopted in a successful manner. Withregards to human resource the CEOs Lazarids Balsilie most valuable employees. The two havepropelled, advocated and nurtured a culture where employees are seen as partners and the mostvaluable resource. This is depicted by the well-drafted compensation as well as bothers benefits.More importantly, they are actively engaged in making decisions, provided with adequateinformation and a conducive environment where they are free to try innovations, (John, 2000). 7.2 RIM strengths The company has numerous strengths that make it stay competitive. Through its businessstrategy of business to customer, it has managed to have build customer loyalty. This has beenattained by having a well-developed and nurtured brand image. The brand image has beensuccessful in communicating necessary information to the customers. On the same note, Research in Motion has a variety of products line of phones. With thisin place, customers are made to be loyal as they can get a variety in the same company. The
  • 18. Research in Motion Company limited (RIM) 18innovative products it manufactures for instance the Blackberry is well designed with a variety offeatures for instance it can combine the power of a state of art wireless email with capabilities ofsynchronizing it with the desktop. Its QWERTY keyboard for examples makes texting an easyand enjoyable task (Sweeny, 2009). Forming partnership with other stakeholders such as service providers all over the globe,which is 300 networks in 120 different countries, is in self a competitive advantage to thecompany. It is worth noting that the company also has a human resource/workforce that is wellacquainted to their task, duties and responsibilities. This has been attained by the variousmechanisms used to satisfy and motivate their workers hence they are ready to offer qualityservices to customers. More importantly, RIM has been able to adopt successfully technology. It is the adoptionof technology that has made it be in a position to employ innovative strategy in developing newand quality products that are eye catching. Additionally, the company is involved in designing,manufacturing as well as marketing of its own products.Global dominance of the company is another strength it posses. It is no doubt that RIM productsare used allover the world. Additionally, the ability to carryout market research places it at abetter position not only currently but also in the near future as the information generated are usedin making rational decisions, (zenportfolios.com, 2010). 7.3 RIM weaknesses On major weaknesses, facing the company is its stages of development. It seems that thecompany has attained or about to attain maturity stage. This is evident by the slowing rate ofgrowth; this is a clear indication that RIM is entering maturity or declining stage. The companytargets only few customers; majorly the professionals. This strategy is risky, because, an increase
  • 19. Research in Motion Company limited (RIM) 19in competition, customers might be taken away, and as a result, the company might fall intodefault. The company targets niche market, so its products are highly priced. Although it is true that carrying out market research is desirable RIM uses a lot of moneyto budget for the program. This is not desirable when it comes to financial performance of thecompany. Similarly, the pricing strategy, which is discriminative, is undesirable as it isprohibitive to a certain market segment (Dilger, 2009). It is worth noting that the company has a much less market share in consumer market.This has been made worse by the poor performance in stock market. In September 2010 23, thestock price was $ 92.41 and by October 19 same 2010 it fell to $69.45. Additionally, RIM haslimited product line as it only engages in phones only unlike its competitors. Lastly, thetechnology developed by the company in some instances is very complex to some potentialcustomers. Finally, compared to Apple, its products have fewer applications, (Martin, 2007). 7.4 RIM opportunities RIM is faced with numerous opportunities that will help it maintain and probablyimprove its market value and position in the face of fierce competition. One major opportunity isto grow in applications and accessories. This will augment its phone products. It is worth notingthat there is room for it to engage in co-branding ventures as recently seen in Apple and Oracle.On the same note of growth and expansion, RIM Ltd has the capability of venturing indeveloping countries where there is evidence of growth of use of its products. This presents agreat opportunity for the company to capture the markets in developing countries that may help itincrease revenue and profit margin. The number of youths in the current population is in the rise. The tech-savvy youngindividuals might offer the desired market hence a green marketing opportunities
  • 20. Research in Motion Company limited (RIM) 20 7.5 RIM threats Like any other organization, RIM Ltd faces a number of threats that it needs to be wearyof. The current market is saturated hence this pose a threat to its expansion and growth. Theunstable economic nature exemplified by the recent financial crisis in 2010 from 2008 may poseanother threat to the company. Fierce competition from such competitors as Apple that is still new in the industry, HTCJujitsu LG, Motorola, Nokia, Samsung, Sony Ericsson as well as Palm Inc who are can easilytake away customers targeted by RIM.. Another threat is brought about the fast pace with whichtechnology is being brought forth. It is apparent that such technological changes come withuncertainty that can bring down an organization (Fortune Magazine, 2009). Similarly, issues about patent infringement are a threat to the organization. Additionally,as the industry grows, there is need for professionals especially in telecommunicationengineering. Time will come that the supply will not be at par with the demand hence RIM willnot be in a position to acquire and replace its aging workforce. 8.0 Strategic alternatives are available for RIM There are three strategic alternative for the organization brought forth after a research oncompany analysis. These are a market development, product development and or marketpenetration option.Alternative 1: Product development This options calls for employing a multifaceted plan in developing the company’sproducts. Steps to attain this include raising the existing applications to Blackberry handset. This
  • 21. Research in Motion Company limited (RIM) 21is what Apple has managed to successfully accomplished in the iPhones. Ideally, co-brandinginitiatives can also be used by the help of such software’s organization as Nintendo, which willhelp to improve the gaming features, which will appeal to customers (Grooms, 2010).Alternatively, to develop the product of the company, there is room for it to come up withservices for instance enhances handling of customers while addressing issues in regards tohardware. RIM Ltd can also enter into green marketing where it recycles and refurbish handsetsused.Alternative 2: Market development strategy This kind of strategy main aim is to reach new market segment. There is no doubt thatthere are a huge number of potential customers from a lower income category especially indeveloping countries; this might offer the company with a profitable market for its products.Analysis seem to show that RIM is about to attain its maturity stage or declining stage and anoption that will help it come out of this phenomenon is introducing its products at a much lowerprices. It would be a good initiative for the company to sell the older models at a discount as itintroduces newer versions. Similarly, as this goes on creation of a product depth can be done inwhich it entails developing of Blackberry models having the same fancied images but withunequal features like those in smart phones. A customer segment that includes students incolleges, teenagers as well as new users of the model can fancy such simple versions.Alternative 3: Market penetration plan The aim of this alternative or option will be to raise revenues from the current clients thecompany has as well as attracting new potential customers from the existing target market. Themajor strategies employed to attain this will be intensive advisement, publicity and promotions.RIM can for example provide various kinds of discounts to family members of their current
  • 22. Research in Motion Company limited (RIM) 22customers (Pearson & Gritmacher, 1990). This will enhance the existing customer loyaltiesespecially if the same is given to children who are the potential future customers of thecompany’s product. Increased and extensive promotion and advertisement through the various media; print,TV commercials, Radio jingles and through the internet will help the company penetrate more tothe existing customer base. Alternatively, through various social responsibility initiatives, thereare chances that the organization for instance after sponsoring a sports tournament can gainmarket advantage. 9.0 Pros and Cons of the alternatives The advantages of the first alternative are; it will help increase market share of thecompany’s products in the target market, customer loyalty will be enhance as well asimprovement in the company’s brand image. Additionally, co-branding will see to it that theproduct perceived value is increased (Monczka & Guinipero, 1984). On the other hand, the drawbacks of this alternative include the high cost incurred whencarrying out market research, there is also a possibility of diluting the brand image of thecompany when it engages in co-branding and finally the whole activity is time consuming asdeveloping software are a complex activity. Alternative two is advantageous in the following ways; products will be affordable, thiscoupled with accessibility makes the company to easily conquer the new market segments, thecompany will also be in a position to make profit from resources deemed useless and outdatedinventory. However, the alternative is characterized with the potential of diluting the company’sbrand, decreasing the perceived value of the company is other products due to its cheaper
  • 23. Research in Motion Company limited (RIM) 23products with fewer advanced features (Hempel, 2009). There is also the possibility of creatingcommunication gap as there will be fewer functions on the older models of Blackberry. Market penetration as the third option can help the company to increase marketawareness of its products, through advertisement and promotion more individual will be able torecognize the company’s brand. Lastly and more importantly, the whole plan will make thecompany’s product to be more and easily accessible as online advertisement can be made with anoption of placing orders online. Nonetheless, this option has potential drawbacks. These include high cost incurred whenestablishing and running the entire promotion and advertisement activity, there is also thepossibility of losing revenue as a result of using discount in selling products and finally thealternative is faced with limited growth capabilities in the current market Sako, 1992). 9.1 Selected alternative In my opinion, alternative one, which is product development, is the best and opts to bethe solution to the current uncertainty facing RIM Ltd. Having in mind that stiff competitionbrought forth by such companies as Apple, which produces sleek products with varied features,can only is countered by the same but advanced products. Product development will see to it thatRIM comes up with new and advanced applications and software. Joining hands with such firmsas Nintendo, which is capable of helping the company improve on its applications for instancegaming features, will definitely give it a competitive advantage (Watts et al. 1995). The reasons for choosing this alternative stems from the advantages it brings which are; itwill help increase market share of the company’s products in the target market, customer loyaltywill be enhance as well as improvement in the company’s brand image. Additionally, co-
  • 24. Research in Motion Company limited (RIM) 24branding will see to it that the product perceived value is increased. All these will be possibleand at the same time helping the company to maintain market dominance. 9.2 Implementation For RIM to successfully implement the chosen alternative, there are three vitalcomponents that need to be closely followed. One program that needs to be in place is concernsrecycling and refurbishing. With this, there is need for the company to ensure that it acquires allrelevant supportive documents before embarking in the green initiative (Tanner, 1998). Olddevices will then be collected from the various locations and shipped to a central place wheresorting will be done. At this point, those units that can be recycled are re-sold while those thatare completely of no use are done away in away that are friendly to the environment. Secondly, development of a wider range of software’s and applications is done toenhance market share as well as perceived product value. In order to realize this, the companywill venture into co-branding initiatives with such organizations as Nintendo. Once the softwareis developed, they will be made available to customers at affordable prices. Considering the factthat most of the Apple’s software application is priced at or less that 0.99 dollars, RIM needs toalso have such a pricing strategy (Hempel, 2009). Customers will be able to visit RIM website todownload the applications. Similarly free version will also be made available for customers. With all this initiatives carrying out promotion will help in developing the product. Thiscan be attained in part by RIM engaging in social corporate responsibility activities. Usinginternet, TV commercial will be used to communicate the various applications developed by thecompany. It will also be responsible to adequately budget for the whole process ofimplementation as money will be needed to carryout extensive market research, marketing and
  • 25. Research in Motion Company limited (RIM) 25administration (Vuong, 2008). Ultimately, the successful implantation will ensure that thecompany continues to grow and maintain it grip in the market. 9.3 Controlling the alternative It is true that there is need to control the whole alternative because if it is left open, itmight lead to attainment of undesired outcome that might be self-defeating. The company needsto have in place a committee made of professional in finance, marketing, environment,procurement and law that will help over see the implementation of the project and that it does notgo beyond its borders (Lascelles & Dale, 1989). 9.4 Anticipated crisis Based on the current political unrest especially in Islamic countries, the company needsto be aware of the consequences that it may face as a result of political instability. There is also apossibility of shortages of skilled and talented human resources. This is as a result of stiffcompetition and the fast growth of the industry that needs engineers ranging fromtelecommunication to other fields such as marketing (Wauters, 2009). The future prospect of the company is bright provided it has in place strategies to counterthe negative impacts of the fore mentioned crisis that are anticipated. Having in mind that thecurrent generation is in ‘love ’ with new technological innovation, there will be market for itsproduct, however, there is need for RIM to strategized on how to conquer and find their waythrough youths in developing countries with low incomes will help it. Secondly, withtechnological innovation, the company will be able to meet the aspiration and demands ofcustomers hence capturing it target market despite the stiff competition it is currently facing.
  • 26. Research in Motion Company limited (RIM) 26 10.0 Appendices Financial ratio profileResearch In Motion stock performance as at December 2002
  • 27. Research in Motion Company limited (RIM) 27 11.0 ReferencesAuthorstream.com. (2010). Situational analysis for Blackberry’s product line extension. Retrieved on 25 February 2011 from: http://www.authorstream.com/Presentation/prikshitandotra-457339-a4007162-marketing- management-mba-3a-lsbf-uow/BlackBerry.com. (2010). Research in Motion to Acquire QNX Software Unit from Harman International. Retrieved on 25 February 2011 from: http://press.rim.com/release.jsp? id=3766Dilger, D. (2009). RIM shares surge as Blackberry sales hit record 7.8 million. Retrieved 25, February 2011, from Roughly Drafted Magazine: http://www.roughlydrafted.com/2009/04/02/rim-shares-surge-as-blackberry-sales-hit- record-78-million/Docshare.com. (2010). Palm Inc amp Research In Motion Limited. Retrieved on 25 February 2011 from: http://www.docshare.com/doc/138353/Palm-Inc-ampamp-Research-In- Motion-LimitedElsa, L. & Green, J. (2006).RIM in the mobile enterprise marketFortune Magazine, (2009). 100 Fastest-Growing Companies. Retrieved 25, February 2011, from http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/full_list/index.htmlGrooms, D. (2010). The Advantages of Lean Manufacturing. Retrieved on 24 October 2010 from http://ezinearticles.com/?The-Advantages-of-Lean-Manufacturing&id=784987Hempel, J. (2009). Smartphone wars - Blackberry’s plan to win. Retrieved on 25 February 2011 from http://money.cnn.com/2009/08/12/technology/blackberry_research_in_motion.fortune/
  • 28. Research in Motion Company limited (RIM) 28John, K. (2000). InfoWorld is targeted to Senior IT professionals. Content is segmented into Channels and Topic Centers. InfoWorld also celebrates people, companies, and projects. New York: InfoWorld Media Group, IncJohn B. (2007). Economics. Washington: South-Western College Pub.Lascelles, D. & Dale, B. (1989). “The buyer-supplier relationship in total quality management”. Journal of Purchasing and Materials Management. 25 (2): 10-19.Lendino, J. (2009). "Research in Motion Acquires Dash Navigation | News & Opinion". PCMag.com. http://www.pcmag.com/article2/0,2817,2348281,00.asp. Retrieved 2011-02-18Martin, Richard (2007-03-10). "RIMs Stock Options Blunder - RIM". InformationWeek. Retrieved on 25 February 2011 from: http://www.informationweek.com/news/mobility/showArticle.jhtml? articleID=197801695.Monczka, R. & Guinipero, L. (1984), "International purchasing: characteristics and implementation". Journal of Purchasing and Materials Management. 20 (4): 2-9.Pearson, J. & Gritmacher, K. (1990). “Integrating purchasing into strategic management”. Long Range Planning. 23(3): 91-99.Porter, M. (1980). Competitive Strategy. New York: Free Press.RIM. (2011). Research in Motion Reports Fourth Quarter and Year-End Results for Fiscal 2011. Retrieved 25, February 2011 from http://www.rim.com/investors/documents/pdf/pressrelease/2011/Q3_press_release.pdfSako, M. (1992). Prices, quality and trust. Cambridge: University Press.
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  • 30. Research in Motion Company limited (RIM) 30Vuong, F. (2008). Research in Motion Limited: Financial Analysis. Retrieved on 25 February 2011 from http://www.docstoc.com/docs/3046556/RIM-Financial-AnalysisWatts, C. et al. (1995). “Linking purchasing to corporate competitive strategy”. International Journal of Purchasing & Materials Management. 31(1): 3-8.Wauters, R. (2009). Report: iPhone Applications Are Getting Cheaper. Retrieved 25, February 2011 from Tec Crunch Magazine: http://www.techcrunch.com/2009/05/20/report-iphone- applications-are-getting-cheaper/zenportfolios.com. (2010). Blackberry’s Rise in Brand Power The Dueling Marketing Strategies of RIM versus Apple. Retrieved on 25 February 2011 from: http://zenportfolios.com/lavreet-randhawa/files/2009/11/Marketing-Case-Study-RIM-vs- Apple.pdf