Research in Motion (RIM) was founded in 1984 and launched the first Blackberry device in 1996. It dominated the business smartphone market with the secure Blackberry network. However, RIM struggled in recent years as the iPhone and Android gained popularity. Losing market share and facing financial losses, RIM laid off over 2,000 employees in 2011 as its stock price dropped significantly. The company hopes its new products and leadership can help it transition successfully in the increasingly competitive mobile market.
2. Founded in 1984
First Wireless
Technology
Information Developer
Started by two
engineering students
from Waterloo
Financed by various
independent venture
capitalists
3. Started as a wireless
communications
developer in the late
1980’s
First form of “text
messaging” launched in
1996
First Blackberry launched
in 2001
Received numerous
awards in the early
2000’s
Developed a very secure
business network
4. ◦ Mike Lazaridis –
Founder
◦ Thorsten Heins –
President and Chief
Executive Officer
5. Blackberry Smart Phones
Blackberry Playbook Tablet
Various Exclusive Applications
Desktop and Smart Phone Software
Secure and Reliable Network until 2011
6. Large Corporations Depend on Secure
Networks
Business People
BBM: Ages 19 – 35
7. Demand increased dramatically in poorer
nations between 2006 & 2010
Demand of landlines decreased/Supply of cell
phones increased
Demand for text message increases/Demand
of cell phone increases
New models release annually (Product
Differentiation)
BBM is exclusive and popular – Blackberry
demand increases
8. 2011 a sinking year for RIM
Over 2000 employee laid off
Stock sinks over 400%
Unhappy employee letters ignored by execs
Steve Jobs on blackberry:
“They must move beyond their area of strength and
comfort, into the unfamiliar territory of trying to
become a software platform company”
Read more:
http://techland.time.com/2010/10/19/steve-jobs-
disses-blackberry-google-7-inch-
tablets/#ixzz1ru8FSK00
10. Year 2011 2012
Sales/ 19,915.00 18,456.00
Revenue
Gross 8,833.0 6,600.00
Income
Net 1,164.00 3,411.00
Income
Cost of 11,082.00 11,856.00
goods
Sold
•Information retrieved from personal
Bank of Montreal Investor Line account
11. Fixed Costs:
◦ Lease on all buildings and offices
◦ Utilities
◦ Executive and other employee salaries
◦ Insurance
Variable Costs:
◦ Maintenance costs
◦ Research costs (Panels, surveys, 3rd Party)
◦ Hourly wages
◦ Overtime pay
◦ Cost of Goods Sold
◦ Cost of over all labor
12. Let’s put things in perspective:
Apple and Google are Research In Motion’s
largest competitors!
Apple Shares……………………… $600.00/Share
Google Shares……………………..$620.00/Share
RIM Shares……………………….. $13.00/Share
13. Blackberry’s are addictive
Can be referred to as “Crackberry”
People are hooked on the blinking red light
People are addicted to the clicking new the
keypad makes
A high percentage of business require the use
of blackberry (secure network)
BBM (Blackberry Messenger) – Like Facebook
14. Sinking Company
Requires major make over
Still carries a popular product
They should listen to their customers
New CEO seems promising
Legendary Organization
