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RIM 1
 

RIM 1

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    RIM 1 RIM 1 Presentation Transcript

    • RIM Executive Meeting
      Jennifer Bryant | NiranjanChavan | Kenneth Chen | William Li | Ibrahim Mir
    • The new model: … data is the future
      2
    • Discussion points… changing the consumer’s perspective of RIM
      1. Data is the future for the consumer market
      2. Design a new handset in anticipation of changing consumer needs
      3. Create consumer-centric applications
      4. Partner with carriers to provide data phone option
      5. Combine innovative phone with creative direct advertising campaign
      3
    • Supporting information
      4
    • Data: the new mental model for smartphones
      The idea:
      Create a new consumer product and service that primarily uses data to transmit information, without the traditional phone capabilities.
      The evidence:
      Smartphone users are driving internet usage
      Associated with high application usage
      Skype and other VOIP providers enable phone capabilities over the internet
      iPhone customers are currently (relatively) satisfied
      BlackBerry is closely associated with the enterprise market
      Heavy data usage are making iPhones unprofitable for carriers
      RIM has the most efficient bandwidth capacity in the market
      5
    • Data: the new mental model for smartphones
      Assumptions:
      Capture the consumer segment by offering something different, providing them with what they need now and will be using more of in the future
      RIM will not succeed in the market by simply mimicking the iPhone
      Guiding principles:
      Creating a new consumer perception requires a new approach
      Provide consumers with a product that matches the core competencies of the organization
      6
    • Consumers are driving the smartphone market
      US smartphone users are driving mobile Internet usage
      Driven by high application usage
      The mobile Internet will become a greater factor in future consumer smartphone buying decisions
      Source: AdMob Mobile Metric report (February 2009)
      7
    • Establish a new consumer perspective
      Sharp increase in smartphone demand among consumers
      The change is happening
      Similar to shift from landlines to cell phones
      RIM/BlackBerry are tightly associated with enterprise market
      8
    • Customer base using primarily enterprise models
      9
      Curve is the most requested BlackBerry product (45%)
      Source: AdMob Mobile Metrics Report, February 2009
    • The technology environment is shifting to a Wi-Fi world
      Google to offer free Wi-Fi in San Francisco
      Currently offers free Wi-Fi services to Mountain View as testing ground
      China Telecom’s ChinaNet
      World’s largest and fastest growing Wi-Fi network; available in hundreds of cities across China
      Sources: http://wifi.google.com; http://en.chinatelecom.com.cn/products/t20060116_48406.html
      10
    • US Wi-Fi usage is increasing, driven by increased smartphone usage
      Source: AdMob Mobile Metrics Report, January 2009
      11
    • Develop a new handset for the new mental model
      Perception: RIM is too associated with business to be seen as a consumer model.
      E.g. Toyota versus Honda
      Storm was not an innovation; was launched as a competing model
      Product has not met with consumer expectations
      Need to develop an innovation that also meets customer needs to shape the market
      Differentiation of service and anticipation of demand has proven to successful in this market (e.g. Apple iPhone)
      12
    • Is the BlackBerry Storm trying to be the iPhone?
      Storm was launched primarily to compete with the iPhone
      According to consumers, Storm has not lived up to the hype
      13
    • Changing the way consumers think about RIM products
      What do Consumers want? (Consumption in order of usage)
      Perception of BlackBerry Storm among consumers
      Send/receive photos or videos
      Receive SMS
      Access news/info via browser
      Access email
      Buy ringtones
      Source: Metrics Press Release, May 21 2008
      Poor image quality
      Bugs with phone technology
      Frustration with ‘click’touchscreen keyboard
      No Wi-Fi
      Good for email access, organizing
      Good for creating/editing documents
      Source: ConsumersReports.org review of BlackBerry Storm 9530; rated 65/100 (compared with
      14
    • The future of the market in mobile internet usage through applications
      RIM to work with 3rd parties to launch applications until their market share increases
      High application usage is driving smartphone internet usage
      RIM applications currently business focused
      Developers need incentives to develop new applications
      More application usage will drive further application development (e.g. iPhone)
      15
    • Partnering with carriers to provide anew service to consumers
      Carriers have an incentive to partner with RIM to provide an efficient data phone based on consumer trends
      Carriers are important:
      Subsidize phones to consumers
      Charge a flat rate for smartphone usage
      However, carriers are:
      Losing power in the value chain (e.g. Skype, VOIP)
      As internet usage increases, iPhone will be less profitable for carriers
      Carriers need to partner up or get pushed out of value chain
      Source: Scotia Capital Equity Research Daily Edge Company Comment, Research in Motion Ltd., August 13, 2008.
      16
    • BlackBerry adds value through its bandwidth efficient devices
      17
      BlackBerry is between 8x to 20x more efficient than other technologies
      BlackBerry generates more revenue for carriers
      Source: Scotia Capital Equity Research Daily Edge Company Comment, Research in Motion Ltd., August 13, 2008.
    • Advertise to get consumers to ask for the product before they get to the store
      Combining creative consumer advertising with an innovative product will get consumers to ask for the product
      An innovative product will draw customers to retail stores
      RIM has traditionally focused on direct sales marketing; suitable for enterprise market
      Apple has achieved strong market by combining these two aspects
      Consumers respond to different advertising techniques than enterprise market
      http://www.youtube.com/watch?v=bhhbaaWBgnk
      http://www.youtube.com/watch?v=GmyVzoyY9Jo
      18
    • Apple has the highest percentage of monthly handset requests in US
      Source: AdMob Mobile Metrics Report, February 2009
      19
    • References
      20
      AdMob Mobile Metrics Report (January 2009). AdMob, Inc. 2009. 14 April 2009. < http://www.admob.com/marketing/pdf/mobile_metrics_jan_09.pdf>
      AdMob Mobile Metrics Report (February 2009). AdMob, Inc. 2009. 14 April 2009. <http://www.admob.com/marketing/pdf/mobile_metrics_feb_09.pdf>
      Brands. China Telecom Corporation, 2009. 14 April 2009. <http://en.chinatelecom.com.cn/products/t20060116_48406.html>
      ConsumersReports.org on BlackBerry Storm 9530. Consumers Union of US, Inc. 2009. 14 April 2009. < http://www.consumerreports.org/cro/electronics-computers/phones-mobile-devices/cell-phones-services/smart-phone-ratings/models/overview/99022386.htm >
      Google Wifi. Google. 2008. 14 April 2009. <http://wifi.google.com>
      M: Metrics Press Release (2008, May 21). comScore, Inc. 2008. 14 April 2009. http://www.mmetrics.com/press/PressRelease.aspx?article=20080521-smartbrowsing
      Papageorgious, G. (2008, August 13). Research in Motion Ltd., Scotia Capital Equity Research Daily Edge Company Comment.