Case Study "Research in Motion"


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A very brief and surface level presentation on RIM. There are also some strategies my team and I developed to help them out of their situation.

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Case Study "Research in Motion"

  1. 1. Technology Mobile Apps Touch Screen Wi-Fi Cloud Computing Compatibility with other devices Multi-tasking on the phoneSocietal Values and Lifestyles Social Media Electronic Entertainment U.S populous is enthralled with technology and desire to have the latest and best technology at their disposal
  2. 2. Factor Threats or opportunity ImpactPolitical - Different legal proceedings/ regulations 1.moderate - Patents 2. highEconomic + Economic Growth internationally. 1.high - Economic Recession 2. lowSocial + Estimated 5 billion cell phone subscriptions 1.high(include demographic) globally. 2.high + Increase growth in Canada. 3.moderate + ConsumerismTechnological + Technological advancements Black Berry 7 1.high operating system. 2.moderate - increase competition for apps. 3.moderate + Advancement in the use of internet and mobile devices.
  3. 3. Market Size and Growth U.S Market The industry is suppose to have a growth rate of 2.6% from 2009-2014 Asia Pacific The industry is suppose to have a growth rate of 7.3% from 2009-2014 European The industry is suppose to have a growth rate of 4.6% from 2009-2014Scope of competitive rivalry Foreign operations important for long term competitive success Asia Pacific is the biggest opportunity for companies Accounted for 52.3% of the global market value Indias Smartphone market is expected to grow to about 40 million users by the end of 2015 from about 10 million now
  4. 4. Buyer Needs and Requirement Consumers demand constantly changing Vendors want more innovative products to market to consumersProduct Innovation Short Life cycles force competitors to continuously innovate their productsPace of Technological Change Rapid technological changes makes it hard for companies to stay at a competitive advantage
  5. 5.  Industry Driving Forces: -Product Innovation -Emerging New Internet Capabilities And Applications -Technological Change Industry Trends: -Mobile Apps -Touch Screen -Mobile Media -Increased Globalization -Increased Bandwidth -Cloud Computing
  6. 6.  Rivalry -StrongSupplier Bargaining Power -Moderate to Strong -Small number of large companies -Raw Materials---Electrical components (must buy high quality) Buyer Bargaining Power -Moderate to Strong -Individual consumers -Vendors
  7. 7.  Profitability › Market Revenue  The Industry is profitable for current members with the expected revenue increasing in all of the major segments. This provides the opportunity for companies to increase their market share  U.S market  Expected market value is $17 billion in 2014  European market  Expected market value $12.5 billion in 2014  Asia Pacific market  Expected market value $50 billion in 2014 Attractiveness › Current Members  This industry is attractive to current industry members who have high market shares. › New Entrants  This industry is unattractive to new entrants due to stagnant growth rate rates in the market.  The industry is also highly competitive and  High barriers of entry
  8. 8.  Brand NameProduct InnovationVendor Relationships Foreign OperationsMarketing
  9. 9. Key Success Factor/Strength RIM Apple Motorola Cisco SystemsMeasure Solutions Importance Strength Score Strength Score Strength Score Strength Score Weight Rating Rating Rating RatingProduct Innovation 0.2 5 1 10 2 8 1.6 9 1.8Brand Name 0.2 7 1.4 10 2 8 1.6 8 1.6Vendor Relationships 0.3 7 2.1 10 3 8 2.4 8 2.4Foreign Operations 0.2 7 1.4 8 1.6 7 1.4 7 1.4Marketing 0.1 5 0.5 10 1 5 0.6 7 0.7 Sum of Importance 1 6.4 9.6 7.5 7.9WeightsWeighted Overall Strength 31 48 36 39Rating
  10. 10. Strength: Weakness: No Debt Failure to adapt Brand Name/Recognition Product Defects Security Management Business environment Product Delays High Profit Margins Legal proceedingsOne of the leaders in global markets Niche Market focus Lack of Innovation Opportunities: Threats: Cloud Computing Short product life cycles Mobile Apps Intense Competition Smartphone’s Popularity of Apple/Android products Rapid Technological changes Patent infringement Claims Tablets Vendors Bandwidth Expansion Economic Recession Foreign Operations Slow market growth
  11. 11.  RIM is currently operating under a Best Cost Strategy, we want to stick with this strategy.
  12. 12. oOffensive Strategies Concentrate on Capturing Unoccupied Or Less Contested Market Territory Adapt and Improve Upon Competitor’s ServicesoDefensive Strategies Improve Quality or Safety of Products
  13. 13.  Concentrate on Capturing Unoccupied Or Less Contested Market Territory International Expansion: Focus on more global markets specifically the Asia pacific and South Africa  Phase 1  Form a Strategic Alliance with a local company in India  Phase 2  Begin to test our phones in the market  Phase 3  Continue to establish and strengthen our operations in foreign markets  Market the security features  Phase 4  Continue to monitor results and adjust as needed
  14. 14.  Adapt and Improve Upon Competitor’s Services  Direct Connect  Phase 1  Form a contractual agreement with ooVoo  Phase 2  Begin to implement the new video calling feature to black berry devices  Test the App  Phase 3  Begin to sell the app to consumers  Continue to monitor results and make necessary adjustments as needed
  15. 15. Improve Quality or Safety of Products oDecrease our product delays and glitches • Phase 1 Begin to implement new technological innovations • Phase 2 Continuous and thorough product testing • Phase 3 Release products to consumers