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  • 1. RIM Executive Meeting
    Jennifer Bryant | NiranjanChavan | Kenneth Chen | William Li | Ibrahim Mir
  • 2. The new model: … data is the future
  • 3. 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
  • 4. Supporting information
  • 5. 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
  • 6. Data: the new mental model for smartphones
    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
  • 7. 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)
  • 8. 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
  • 9. Customer base using primarily enterprise models
    Curve is the most requested BlackBerry product (45%)
    Source: AdMob Mobile Metrics Report, February 2009
  • 10. 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
  • 11. US Wi-Fi usage is increasing, driven by increased smartphone usage
    Source: AdMob Mobile Metrics Report, January 2009
  • 12. 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)
  • 13. 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
  • 14. 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
  • 15. 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)
  • 16. 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.
  • 17. BlackBerry adds value through its bandwidth efficient devices
    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.
  • 18. 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
  • 19. Apple has the highest percentage of monthly handset requests in US
    Source: AdMob Mobile Metrics Report, February 2009
  • 20. References
    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.