121013 Blackberry Business Audit (BMC 205 @ UofC)

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This is our UofC Business Class (Synergy) business audit of BlackBerry (formerly Research In Motion) to determine its viability for potential investors and employees. We want to find out whether …

This is our UofC Business Class (Synergy) business audit of BlackBerry (formerly Research In Motion) to determine its viability for potential investors and employees. We want to find out whether BlackBerry presents a good opportunity or not.

A comprehensive investigation into the government’s impact, social trends, ethics, social responsibility, technology, marketing, stakeholders, and financial position was done.

At the end, an overall conclusions and recommendations were provided.

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  • 1. 2013 Business Audit BlackBerry (RIM) Course Name : BMC 205 Business Management Group Name : Synergy Group Members : Erin Kerr Gina Gentile Janelle Campo Noelia Esquivel Rufran C. Frago Instructor : Jacklynn Holmes Author : Group 2 Date : December 10, 2013
  • 2. EXECUTIVE SUMMARY This business audit has been completed to evaluate the current position of BlackBerry (formerly Research In Motion) and determine the viability of the technology company for potential investors and employees. To establish whether or not BlackBerry presents a good opportunity for interested parties, a comprehensive investigation into the government’s impact on the company, social trends, ethics and social responsibility, technology, marketing, stakeholders, financial position, and overall conclusions and recommendations has been drawn from the information found. BlackBerry is a Canadian company that in the past has had government support in the form of product endorsements. Although there is no policy that requires government employees to use a specific phone, at this time, two-thirds of government employees use BlackBerry (Press, 2013). Aside from supporting the product as consumers, the government of Canada could also help pave trade routes and form agreements with other governments to simplify some of the difficulties faced due to competing business interests. Socially, BlackBerry has suffered backlash over disrupted service, most notably a worldwide outage that affected users for three days in October 2011. Consumer support was already waning at that point and the disruption caused severe unrest amongst the client base. Additionally, delays and discontent over the BlackBerry 10 operating system led to more negative attention in the media and reports that BlackBerry’s market share dropped 36% between 2009 and 2012 (Economist, 2013). BlackBerry operates ethically and in a socially responsible way. The company is known for its support of organizations such as Free the Children and for funding Science and Engineering programs for youth to encourage future innovation. The company is also well regarded for its commitment to client privacy and security and does not partake in unlawful business. Technologically, BlackBerry was once a front-runner in terms of technological advancements and innovative solutions. Although it has fallen behind its competitors, BlackBerry is still influencing the market with messaging features and business solutions. From a marketing perspective, BlackBerry has struggled to keep up with competitors, particularly with pricing strategies. While priced similarly to comparable Apple and Samsung products, the prestige is not comparable and the pricing strategy failed to generate sales. Although BlackBerry made a name for itself by catering to business professionals, in an effort to expand its customer base, they have begun marketing features that appeal more to people balancing their personal and professional lives. BlackBerry’s main stakeholders at this time are consumers and employees, including new CEO John Chen who has been tasked with revitalizing the lagging firm. Financially, BlackBerry has struggled over the past three years, with sales revenues dropping from $19.9 billion in 2011 to just $2.7 billion in 2013. Share prices have also plummeted from an all-time high of $149.90 per share in June 2008 to a mere $6.27 in December 2013, now representing just 4.3% of its former share. Additionally, 2013 has been a bad year financially with $1 billion worth of inventory being written off and 4500 jobs cut in cost savings measures. Despite poor financial performance in recent years and the general loss of market shares to competitors such as Apple and Samsung, BlackBerry is in a unique position of reinvention and new management is set on returning glory to the former giant. For investors seeking high-risk and long-term investments, BlackBerry could recover in coming years, leading to potentially huge payouts due to the currently low share price. Investing is encouraged. Page 2 of 27
  • 3. TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ 2 INTRODUCTION .......................................................................................................................... 4 COMPANY OVERVIEW .............................................................................................................. 5 POLITICS AND GOVERNMENT IMPACT ................................................................................ 5 SOCIAL TRENDS.......................................................................................................................... 6 ETHICS AND SOCIAL RESPONSIBILITY ................................................................................ 7 TECHNOLOGY ............................................................................................................................. 8 MARKETING................................................................................................................................. 9 STAKEHOLDERS ....................................................................................................................... 10 FINANCE ..................................................................................................................................... 11 RECOMMENDATIONS AND CONCLUSION ......................................................................... 13 BIBLIOGRAPHY ......................................................................................................................... 14 APPENDICES .............................................................................................................................. 18 APPENDIX A – Descriptions of the Most Popular BlackBerry Smartphone Products ............... 18 APPENDIX B – BlackBerry Pricing Strategy and Competition Pricing Comparison ................. 21 APPENDIX C – Blackberry Financial Indicators ........................................................................ 22 APPENDIX D – Financial Highlights (2010 to 2013) ................................................................. 26 INDEX .......................................................................................................................................... 27 Page 3 of 27
  • 4. INTRODUCTION A comprehensive audit of BlackBerry has been completed to show that despite some of the company’s deficiencies over the last few years it could be a great time to invest in BlackBerry. This audit will evaluate the current market position of BlackBerry, as well as specifics on the company’s financials, political position, ethics and social responsibility practices, social trends, marketing, and stakeholder considerations. The methodology behind this report is a combination of market research and comprehensive analysis of competitors and external factors. It has been found through literary and systematic research that Blackberry was once perceived as the very best smartphone available on the market (Goldfayne, 2012). The line of products includes a variety of smartphone devices and a tablet that have stood apart from competitors with product features such as security, keyboard, and synchronized compatibility (Michaluk, 2009). BlackBerry continues to maximize its smartphone devices by updating their technology, increasing quality, and strengthening distribution channels. BlackBerry shows a positive approach to their ethical and social practices and upholds business ethics by following a Code of Business Standards and Principles. Despite BlackBerry’s efforts to respond to change, the company has suffered many setbacks in the past three years including countries threatening to suspend services, the delayed release of their touch-screen phone and network malfunctions that affected many users. As a result, quantitative research has been collected to show BlackBerry’s drop in earnings per share in the last three years. Given the new venues for change and the drop in shares from $69.30 per share in February 2011 to $6.82 per share as of November 30, 2013 (RBC, 2013), it could be a great opportunity for investors to invest in BlackBerry now while there is a window involving lower priced shares. Page 4 of 27
  • 5. COMPANY OVERVIEW Headquartered in Canada, BlackBerry is an international leader in wireless technology, best known for introducing the BlackBerry solution in 1999. Officially renamed BlackBerry Limited in early 2013, the company has been a key player in the smartphone market and has become one of the world’s most respected wireless telecommunications brands. After more than 20 years in the business, BlackBerry has played a significant role in revolutionizing the way millions of people in the world stay connected. The company has introduced a portfolio of integrated hardware, software and service solutions, including the BlackBerry wireless platform, the BlackBerry Wireless Handheld product line, hardware and software licensing agreements, radio-modems and several software development tools (Information and Communications Technologies, 2013). The BlackBerry Wireless Handheld product line includes the BlackBerry Playbook tablet, BlackBerry smartphones and business software (BlackBerry, 2013d). POLITICS AND GOVERNMENT IMPACT In 2010, Saudi Arabia and the United Arab Emirates threatened to suspend BlackBerry services if they did not provide them access to its customers' messages, which they claim were needed for security reasons. India and Indonesia have made similar requests in the past, and talks with those countries are on-going. Indonesia said it will not ban BlackBerry service, but they would like the company to put a server inside the country to handle communication there (Niccolai, 2010). A report in the Wall Street Journal said BlackBerry will talk with UAE operators du and Etisalat over concerns that BlackBerry will impact their revenue streams (McGinley, 2013). These events contribute to BlackBerry’s growing global political setbacks. The Government of Canada could assist BlackBerry with its political challenges by paving a trade route of bilateral business agreements with the countries of concern. This could prevent Page 5 of 27
  • 6. the two semi-government Telephone Companies in the UAE from blocking BlackBerry to protect their own business interests. Many companies are now buying the same smartphones and tablets that their employees use at home. By losing consumer ground outside of office environments, BlackBerry will find it harder to win in the workplace (Economist, 2013). Another strategy would be for the government to use BlackBerry devices in all of its businesses, offices and markets to support the local business. As there are many government employees, if those offices opted to use BlackBerry devices, the move would place a solid and firm foothold on a good portion of the market. SOCIAL TRENDS BlackBerry’s products underwent a “review of strategic alternatives” that resulted in no visible alternative strategy and no chief executive. Thorsten Heins, BlackBerry’s CEO since January 2012, was unseated. BlackBerrys have not only lost out to Apple’s iPhone (and iPad, to which BlackBerry responded feebly) but also by Android devices. Microsoft phones are also outselling them, and in its latest quarter, BlackBerry lost $965 million (Economist, 2013). BlackBerry devices came out late and outmoded, compared to competitor products. The Times wondered recently whether BlackBerry will go the way of the pager, a technology that has long been obsolete. The company seemed unsure of what consumers wanted as it did not release a touch-screen phone until long after Apple, and the device that it eventually launched was a pale imitation of the iPhone (Surowiecki, 2012). Another major issue was an incident in July 2012, when BlackBerry services in the UAE faced severe disruption, with users losing access to messaging and email as BlackBerry’s network grappled with technical challenges. In October 2011, users worldwide were hit with three days of downtime in another case of technical failure (McGinley, 2013). Page 6 of 27
  • 7. A survey of North American and European companies by research firm Forrester shows that BlackBerry’s share of mobile devices used by their employees plummeted from 57% in 2009 to 21% in 2013. “That’s a death-knell trajectory,” says Ted Schadler, an analyst, who reckons BlackBerry’s market share will drop to single digits by 2015 (Economist, 2013). ETHICS AND SOCIAL RESPONSIBILITY BlackBerry’s Code of Business Standards and Principles is designed to help BlackBerry perform work in a legal and ethical manner (BlackBerry, 2013b). BlackBerry only does business with public officials that have a legitimate business purpose and does not participate in interactions that violate corruption laws including taking bribes or receiving improper payments. BlackBerry makes it a priority to protect the confidentiality of information they receive from their business partners by respecting the intellectual property rights of their suppliers, customers, competitors and all other third parties. As a public company, BlackBerry prepares accurate, timely, and clear disclosures in its public filing with security regulators as well as communications with shareholders. Along with accuracy, BlackBerry keeps their accounting records up to date and accurate by following the IFRS (Bidulka, 2008). BlackBerry’s social responsibility is shown by their involvement in communities. BlackBerry has been a proud supporter of Free the Children since 2011, and also invites students to go overseas and help build homes and classrooms in under developed countries. BlackBerry is an active member of community organizations and encourages employee contribution to community volunteer programs. They actively support Holiday donation programs, food drives, and learning programs that help support Science and Engineering programs that could benefit the world with new inventions and technology (BlackBerry, 2013b). Page 7 of 27
  • 8. BlackBerry looks to improve operations by lessening their environmental impact. In 2012 the Sustainable Life Cycle Assessment (SLCA) and the Life Cycle Assessment (LCA) worked together to provide BlackBerry with information to help focus on what they are doing right and what they can do to reduce overall environmental impact for the BlackBerry Torch9810 and PlayBook tablet. BlackBerry also focuses on reducing energy and building green data centers where IT equipment causes the largest impact. BlackBerry uses data systems that require less power to run, and has added data storage that improves efficiency and frees up storage space. In 2012 BlackBerry introduced a paper procurement policy that is committed to increasing paper purchases from suppliers who sell recycled paper, and the company is thinking outside of the box to reduce their carbon footprint (RIM, 2012). TECHNOLOGY BlackBerry technology has made an impact worldwide. The BlackBerry was launched in 1999 and was the first wireless phone to support e-mail, Internet, faxing, web browsing and text messaging. The first colour screen was launched in 2004 and offerings have expanded ever since. The most recent operating system BlackBerry developed is BlackBerry 10 OS with features including: BlackBerry® Priority Hub, which curates a view of your most important messages, BlackBerry® Natural Sound technology that lets you hear every word with intense clarity, instant previews of BBM, SMS and email from any app let you respond or go to the BlackBerry Hub with a single touch, lock screen notifications let you view the sender and subject of your latest email, text or BBM without unlocking, BlackBerry® Keyboard updates further improves your efficiency, and Reply Now lets you send an automated response to incoming calls when you are too busy to pick up. Documents To Go™ comes with InTact Technology™, ensuring any formatting changes you make will remain the way you want them to. I’m running late’ function in BlackBerry Calendar Page 8 of 27
  • 9. allows you to instantly let meeting participants know if you’ll be late, enhanced sharing functionality offers suggestions on who and how to share your pictures, files, links or documents, learning from your past activity. Easier copy and paste comes from more precise cursor control, a double tap to select feature, editing options and direct sharing (BlackBerry, 2013a). MARKETING Consumer electronic success begins with being able to provide customers with quality, technologically advanced products. BlackBerry has been a key player in the smartphone market since 1999 and has revolutionized the way millions of people in the world stay connected. BlackBerry products include a variety of smartphone and tablet devices, as well as software applications and accessories. Some of the better known BlackBerry models include the Pearl, Curve, Bold, Torch and BlackBerry 10. Some key features that set BlackBerry products apart are strong security features, removable and expandable batteries, multitask programs, multiple form factors, and compatibility with almost every carrier in the world (Michaluk, 2009). BlackBerry`s target market was originally tailored to business professionals but has recently shifted toward those looking to balance both their professional and personal lives. "BlackBerry believes that its target market is people that are hyper-socially connected and true multi-taskers that need to get things done" (Lopez, 2013). As BlackBerry continued to evolve their products and publicize new models, consumers benefited from increased quality and additional features with each release. The BlackBerry Pearl was the first BlackBerry product with a trackball and progressive products like the Curve, Bold and Torch included better quality screens, more memory, built-in chat software, camera phones, mapping software and other consumer focused additions (Wikipedia, 2013). High level detail of several popular models of BlackBerry products, including BlackBerry 10, can be found in Appendix A, Figures 1A-5A. Page 9 of 27
  • 10. When BlackBerry launched their new BlackBerry 10 smartphones (Z10 and Q10), they elected to try to keep their prestigious status by pricing units closely to the iPhone 5. Their pricing strategy centred around what is considered a price skimming strategy - introducing a new product on the market at a high price and gradually decreasing the price over time as additional competition enters the market (Althouse, Allan & Hartt, 2013). Unfortunately, strong competition was already established and the new models did not live up to their competitors. Proof of pricing strategy and competition pricing can be found in Appendix B. First quarter sales resulted in an overestimation of approximately 800,000 units; an expected 3.5 million devices were ready to go but only 2.7 million were actually shipped. The lack of sales for the Z10 and Q10 indicates that the pricing strategy was not successful (Kuittinen, 2013). Currently, BlackBerry has offices in North America, Europe and Asia-Pacific. BlackBerry CMO Frank Boulben confirmed that the new Q10 and Z10 devices were being tested by 150 carriers and at least six BB10 devices would be globally released at varying price points. "Six new BlackBerry 10 smartphones in 2013? Seeded to carriers across the planet without an exclusivity agreement? Yup, RIM is doing something very, very right” (Rowinski, 2013, para 1). STAKEHOLDERS John Chen, the Executive Chair and CEO of BlackBerry recently accepted the position after CEO Thorsten Heins stepped down. According to sources, after weeks of weighing a buyout, the company has chosen to move ahead with new management. Halliwell (2013) details the importance newly appointed CEO Chen has to accelerate and transform the business. He explains the commitment to reclaiming success through the adoption of a new mobility management platform and a new device strategy. Chen is also committed to customers and high quality products and services that millions of people rely on globally (Halliwell, 2013). Page 10 of 27
  • 11. BlackBerry customers are another important stakeholder. As consumers, they are concerned with the quality of BlackBerry’s products and services and desire modern and updated features. Giving the devices a competitive edge with a sleek design, apps and music options will keep consumers interested in future products. The company is in a time of transition and attempts to satisfy the President and CEO by giving him the freedom to make changes as he sees fit. A new management platform will allow multiple devices to work together, much like the cloud where work and home devices sync with the same content (Ankeny, 2013). The company satisfies consumers by allowing them to provide consumer reports about their products and services. Sources show that BlackBerry will push a software update to users that will bring the ability to directly run Android packages on phones (Williams, 2013). Additionally, BlackBerry is pushing ahead with the BBM service that consumers have grown to know and enjoy. BlackBerry said it was rolling out its social network BBM Channels as a downloadable app and would be teaming up with emerging-market smartphone manufacturers to have BBM preinstalled on their devices (Connors, 2013). FINANCE BlackBerry has recently suffered a significant loss of sales and will cut 4500 jobs and write off nearly $1 billion worth of unsold phones due to its inventory charge of the Z10 phone. Many factors have affected the profitability of the company’s industry including market stability, material price changes and competitors. The inventory charge of the Z10 phone has affected BlackBerry most negatively. Facing intensifying competition, BlackBerry cut its sales and profit forecasts for this quarter on lower-than-expected demand for smartphones (Miller, 2013). As the market is maturing and reaching a saturation point, mobile phone sales in the forecast period are expected to decline at volume and constant value CAGRs of -1% and -5%, Page 11 of 27
  • 12. respectively, with feature phone sales dropping significantly. With the current smartphone penetration rate varying from around 50% to over 60% according to different industry sources, smartphones are poised for stronger volume growth in the forecast period, especially as they continue replacing feature phones as the primary handset. However, in constant value terms, smartphone sales are expected to start declining in 2014-2015 due to increasing competition between carriers trying to win consumers with more attractive prices. Overall, smartphone sales in the forecast period are projected to register a 4% volume CAGR and a -2% constant value CAGR over the forecast period (Euromonitor, 2013). Debt to Equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets and is equal to Debt divided by Equity. Debt equity of less than 0.5 is acceptable for businesses like BB (Investopedia, 2013a). One of the most important is return on equity. It is a basic test of how effectively a company's management uses investors' money. ROE shows whether management is growing the company's value at an acceptable rate. ROE is equal to Net Income divided by Shareholder Equity. Many professional investors look for a ROE of at least 15% (Mclure, 2010). The ratio of net profits to revenues for a company or business segment that shows how much of each dollar earned by the company is translated into profits is called Net Profit Margin and is equal to Net Profit divided by Revenue. Net margins will vary from company to company, and certain ranges can be expected from industry to industry, as similar business constraints exist in each distinct industry. A company like Wal-Mart has made fortunes for its shareholders while operating on net margins less than 5% annually, while at the other end of the spectrum some technology companies can run on net margins of 15-20% or greater Page 12 of 27
  • 13. (Investopedia, 2013b). Ratio calculations for Blackberry can be found in Appendix C Figures 1C-6C. Appendix D illustrates financial highlights from 2010-2013. RECOMMENDATIONS AND CONCLUSION Despite declining sales over the past three years (see Appendix C), BlackBerry is an established and socially responsible company with extensive experience in the smartphone market. With the addition of new CEO John Chen and new plans for reinvention, there is a unique opportunity for investors that are able to tolerate a high level of risk. With BlackBerry stocks sitting at a share price of $6.82, it is a viable opportunity to invest in a large number of stocks for a reasonable price as the coming years could offer renewed success for the former giant. After the collapse of the potential deal with Fairfax Holdings, BlackBerry made it clear they are in it for the long haul and have plans in place to ensure future success (Babad, 2013). From an employment perspective, this may not be a desirable time to work for BlackBerry as job security can’t be guaranteed. As outlined in this comprehensive audit, BlackBerry has many positive and ethical endeavors, which result in positive global perceptions. With increased support from the Canadian government and a pricing strategy overhaul, BlackBerry may be able to regain some of its former glory. With consumers as one of the main stakeholders, effort needs to be put in to improving public opinion and increasing technological features to improve consumer reviews and close the gap between BlackBerry and its competitors. While success is not guaranteed, investors with long-term goals may choose to invest as the potential for a payout is high. With new management at the helm, a strong track record of security and privacy, and a marketplace that is saturated with similar phones, BlackBerry may have a chance to break out of its slump and be more successful than ever. Page 13 of 27
  • 14. BIBLIOGRAPHY Althouse, N., Allan, L. & Hartt, C. (2013). The Future of Business. Fourth Edition. Nelson Education. Toronto, Ontario. Ankeny, J. (2013). BlackBerry previews cross-platform BYOD management solution. Retrieved from, http://www.fiercemobileit.com/story/blackberry-previews-cross-platform-byodmanagement-solution/2013-10-08 AT&T. (2013). BlackBerry Q10 – Black. Retrieved from, http://www.att.com/shop/wireless/devices/blackberry/q10-black.html#fbid=KXY9Vv5hNS Babad, M. (2013 November 4). BlackBerry scenarios: A $3 stock price, a piecemeal sale, a rebirth. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-onbusiness/top-business-stories/blackberry-scenarios-a-3-stock-price-a-piecemeal-sale-arebirth/article15247082/ Bidulka, B. (2008). RIM document. Retrieved from, http://www.osc.gov.on.ca/documents/en/Securities-Category5Comments/com_20080411_52-402_bidulkab.pdf BlackBerry. (2013a). Blackberry 10 OS overview. Retrieved from, http://ca.blackberry.com/software/smartphones/blackberry-10-os.html BlackBerry. (2013b). BlackBerry code of business standards and principles. Retrieved from, http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Gover nance/Code_of_Business_Standards_and_Principles.pdf BlackBerry. (2013c). Financial documents. Retrieved from, http://ca.blackberry.com/company/investors/documents.html BlackBerry. (2013d). Research In Motion is now BlackBerry. Retrieved from, http://ca.blackberry.com/company.html BlackBerry. (2013e). ShopBlackBerry. Retrieved from, http://store.shopblackberry.com/store/bbrryus/en_US/pd/productID.287836800/categoryI D.66826500/parentCategoryID.66826200 CNN. (2013). BlackBerry. Retrieved from, http://money.cnn.com/quote/quote.html?symb=BBRY Connors, W. (2013). BlackBerry rolls out its BBM social network. Retrieved from, http://online.wsj.com/news/articles/SB10001424052702304465604579221950551457222 Page 14 of 27
  • 15. Economist, T. (2013). Blackberryonly thorns. Retrieved from, http://www.economist.com/news/business/21589445-fallen-star-smartphone-industrythings-go-bad-worse-only-thorns?zid=291&ah= 906e69ad01d2ee51960100b7fa502595 Eurominitor. (2013). Mobile phones in Canada. Retrieved from, http://www.euromonitor.com/mobile-phones-in-canada/report Friend, D. (2013). BlackBerry stock plunges as Fairfax changes offer; CEO Thorten Heins leaving. Retrieved from, http://globalnews.ca/news/944278/blackberry-ceo-leavingfairfax-revises-investment-plan/ Goldfayne, A. (2012). 7 Marketing lessons from RIM’s failure. Retrieved from, http://mashable.com/2012/02/10/marketing-lessons-rim-blackberry Halliwell, D. (2013). BlackBerry 10 to launch with 70,000 apps – more than any first generation operating system. Retrieved from, http://blogs.blackberry.com/2013/01/blackberry-10apps/ Hardy, I. (2013a). BlackBerry Z10 launching in Canada on February 5th, $149.99 on a 3-year and $650 outright. Retrieved from, http://mobilesyrup.com/2013/01/30/canadian-carriers-tolaunch-the-blackberry-z10-on-february-5th-149-99-on-a-3-year/ Hardy, I. (2013b). Here’s the iPhone 5s 2-year contract pricing in Canada. Retrieved from, http://mobilesyrup.com/2013/09/13/iphone-5s-2-year-pricing-in-canada/ Information and Communications Technologies. (2013). Industry Canada. Retrieved from, http://www.ic.gc.ca/app/ccc/srch/nvgt.do?lang=eng&prtl=1&estblmntNo =123456144514&profile=cmpltPrfl&profileId=2059&app=sold Investopedia. (2013a). Debt to Equity Ratio. Retrieved from, http://www.investopedia.com/terms/d/debtequityratio.asp Investopedia. (2013b). Net Profit Margin. Retrieved from, http://www.investopedia.com/terms/n/net_margin.asp Kuittinen, T. (2013). BlackBerry`s risky pricing strategy has backfired. Retrieved from, http://bgr.com/2013/06/28/blackberry-pricing-strategy-analysis Lopez, M. (2013). Blackberry 10: A new market worth competitor. Retrieved from, http://www.forbes.com/sites/maribellopez/2013/01/30/blackberry-10-a-new-marketworthy-competitor McGinley, S. (2013). Blackberry 10 faces service ban in UAE amid launch. Retrieved from, http://www.arabianbusiness.com/blackberry-10-faces-service-ban-in-uae-amid-launch487771.html Page 15 of 27
  • 16. Mclure, B. (2010). ROA and ROE give clear picture of corporate health. Retrieved from, http://www.investopedia.com/articles/basics/05/052005.asp Michaluk, K. (2009). 26 Advantages BlackBerry has over the iPhone. Retrieved from, http://crackberry.com/26-advantages-blackberry-has-over-iphone Miller, H. (2011). RIM cuts profit forecast as BlackBerry demand falls short. Retrieved from, http://www.bloomberg.com/news/2011-04-28/rim-cuts-profit-forecast-as- demand-forblackberry-smartphones-falls-short.html Niccolai, J. (2010). RIM bumps into politics of global business. Retrieved from, http://www.computerworld.com/s/article/9180239/RIM bumps into the politics of global business Press, J. (2013 January 30). Most federal government mobile users in Canada prefer the BlackBerry. Canada.com Retrieved from http://o.canada.com/business/most-federalgovernment-mobile-users-in-canada-prefer-the-blackberry/ RBC. (2013). Direct Investing, Blackberry. Retrieved from, https://wwwx3.royalbank.com/rbc/investing/quotes/charts.asp?symbol=BB&country=CA RIM. (2012). It’s who we are2012 corporate responsibility report. Retrieved from, http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/corporateresponsibility/RIM_CR2012_Report.pdf Rowinski, D. (2013). RIM's BlackBerry 10 distribution strategy looks very smart. Retrieved from, http://readwrite.com/2013/01/10/rims-blackberry-10-distribution-strategy-looksvery-smart#awesm=~onbPxzZnt6k6yk Sprint. (2013). BlackBerry Q10. Retrieved from, http://shop.sprint.com/mysprint/shop/phone_details.jsp?ensembleId=SPRIM10QKT&flo w=AAL&isDeeplinked=true&INTNAV=LP:BlackBerry:Q10:GetIt Surowiecki, J. (2012). BlackBerry season. Retrieved from, http://www.newyorker.com/talk/financial/2012/02/13/120213ta_talk_surowiecki T-Mobile. (2013). BlackBerry Q10. Retrieved from, http://www.t-mobile.com/cellphones/blackberry-q10.html Wickinvest. (2012). Research in Motion. Retrieved from, http://www.wikinvest.com/stock/Research_in_Motion_%28RIMM%29/Data/Deb t_to_Equity Wikipedia. (2013). List of BlackBerry products. Retrieved from, http://en.wikipedia.org/wiki/List_of_BlackBerry_products#Consumer_models_.288000__9000_series.29 Page 16 of 27
  • 17. Williams, M. (2013). BlackBerry increases Android app support. Retrieved from, http://www.techworld.com.au/article/532947/blackberry_increases_android_app_support YCharts. (2013). BlackBerry chart. Retrieved from, https://ycharts.com/companies/BBRY/chart/#/?series=type:company,id:BBRY,cal c:return_on_equity,,&format=real&recessions=false&zoom=custom&startDate=1 %2F1%2F2011&endDate=12%2F6%2F2013&chartView= Zeman, E. (2013). BlackBerry 10: 6 ways to win back consumers. Retrieved from, http://www.informationweek.com/mobile/ mobile-devices/blackberry-10-6-ways-to-winback-consumers/d/d-id/1108386? Page 17 of 27
  • 18. APPENDICES APPENDIX A – Descriptions of the Most Popular BlackBerry Smartphone Products Figure 1A: BlackBerry “Pearl” model information (Wikipedia, 2013). Figure 2A: BlackBerry “Curve” model information (Wikipedia, 2013). Page 18 of 27
  • 19. Figure 3A: BlackBerry “Bold” model information (Wikipedia, 2013). Figure 4A: BlackBerry “Torch” model information (Wikipedia, 2013). Page 19 of 27
  • 20. Figure 5A: BlackBerry “10” model information (Wikipedia, 2013). Page 20 of 27
  • 21. APPENDIX B – BlackBerry Pricing Strategy and Competition Pricing Comparison iPhone 5 Version/Pricing 16GB 32GB 64GB iPhone 5s (2-year contract) iPhone 5s (no contract) $229 $719 $329 $819 $439 $919 Table 1B: BlackBerry 10 competitor, iPhone 5s, current version and pricing figures (Hardy, 2013b). BB10 Version/Pricing Contract (2-yr) No Contract Various providers at launch (Hardy, 2013a) AT&T – current (AT&T, 2013) Sprint – current (Sprint, 2013) T-Mobile – current (T-Mobile, 2013) BlackBerry – current (BlackBerry, 2013e) $199.00 $99.99 $49.99 $99.99 NA $649.95 $584.99 $529.99 $579.99 $549.00 Table 2B: BlackBerry 10 version and pricing strategy, from initial launch in 2013 to current pricing available through three different wireless providers. Page 21 of 27
  • 22. APPENDIX C – Blackberry Financial Indicators Figure 1C: BlackBerry earnings per share over a 3 year period (RBC, 2013). Page 22 of 27
  • 23. Figure 2C: BlackBerry price to earnings ratio over a 3 year period (RBC, 2013). Figure 3C: RIM (BlackBerry) debt to equity (Wickenvest, 2012). Page 23 of 27
  • 24. Figure 4C: BlackBerry return on equity over a 3 year period (YCharts, 2013). Figure 5C: Blackberry net profit margin from 2011-2013 (CNN, 2013). Page 24 of 27
  • 25. Figure 6C: Ratio calculations (Investopedia, 2013). Page 25 of 27
  • 26. APPENDIX D – Financial Highlights (2010 to 2013) 2011 2012 2013 Fiscal 2011 revenue grew $2.1 billion in cash, cash Revenue of $2.7 billion 33% over fiscal 2010 to equivalents, short-term and $19.9 billion and earnings long-term investments at per share grew 47% over the end of the quarter, GAAP income from continuing operations of $94 million, or $0.18 per the prior fiscal year to $6.34 which increased by share diluted per share diluted approximately $610 million in the quarter Adjusted income from Cash flow from operations continuing operations of of approximately $1.1 $114 million, or $0.22 per billion, up from share diluted approximately $900 million Gross margin of 40% driven in Q3 by higher average selling Revenue of $4.2 billion, prices and hardware down 19% from the third margins quarter Figure 1D: RIM’S highlights from 2010-2013 (Blackberry, 2013c) Page 26 of 27
  • 27. INDEX APPENDICES APPENDIX A APPENDIX B Apple’s iPhone BB10 devices BIBLIOGRAPHY BlackBerry 10 OS BlackBerry solution BlackBerry Wireless BlackBerry® Priority Hub Code of Business Standards competitive edge European Union FIGURE 6: BLACKBERRY EARNINGS PER SHARE growing burden IFRS Index John Chen platform RECOMMENDATION AND CONCLUSION Saudi Arabia security features Sustainable Life Cycle Assessment TABLE OF CONTENTS Thorsten Heins Torch9810 touch-screen trackball United Arab Emirates 18 18 22 6 10 14 8 5 5 8 4, 7 11 5 22, 23 5 7 27 10 11 13 5 9 8 3 6 8 6 9 5 Page 27 of 27